Federal aid programs in education and other areas first appeared as categorical grants, permitting resources to be concentrated on specific policy areas and allowing accountability on the part of grantees to be demanded. During recent years block grants and general purpose grants, permitting greater local control, have grown more popular, partly due to decreased administrative difficulties and more efficient delivery services. Since the design characteristics of grants determine the degree to which their effects on national policy matters can be directed, it is more useful to specify these design characteristics when identifying grant types than to depend on the comparatively loose terms, "categorical,""block," and "general purpose." The relevant design characteristics consist of two types of control mechanisms: fiscal controls, including controls on the level of funds, on the distribution of funds, and on the process by which decisions concerning fund usage are made; and programmatic controls, including service standards and controls on planning and program operations. This document concludes with a list of 33 references. (Author/PGD)