Final answer:
Grants-in-aid and block grants are both forms of federal funds given to state and local governments, but they differ in their purposes and restrictions. Grants-in-aid are specific and have strict rules for how the funds are used, while block grants are more flexible and can be used for more general purposes.
Step-by-step explanation:
Grants-in-aid and block grants are both forms of federal funds given to state and local governments. However, there are significant differences between the two. Grants-in-aid are provided for specific purposes such as road construction, education, or urban renewal, and the recipient must follow strict rules for how the money is spent.
On the other hand, block grants are given for more broadly defined purposes, and there are fewer restrictions on their use, allowing states more flexibility in how they allocate the funds.