Which program is funded by the federal government as a block grant and is not an entitlement program?

• A. SSI
• B. TANF
• C. Medicaid
• D. EITC

Answer: (B)

Understanding how funding works is key here. A block grant provides a fixed amount of federal funds to states with broad guidelines, but the states decide how the money is used and there isn’t an automatic guarantee of benefits for every eligible person. Temporary Assistance for Needy Families fits this pattern because the federal government gives states a capped grant to run the program, with rules, work requirements, and time limits, but benefits aren’t guaranteed to everyone who qualifies.

In contrast, programs like SSI and Medicaid guarantee benefits to anyone who meets the eligibility rules, so they are considered entitlement programs. The EITC is a refundable tax credit administered through the tax system rather than a separate entitlement program funded by a dedicated grant, so it doesn’t function as a block-grant program.