Which term describes the practice of sending and managing federal funds to states?

The practice of sending and managing federal funds to states is best captured by the term "grants-in-aid." Grants-in-aid refer to the financial assistance that the federal government provides to state and local governments for specific projects or programs. These funds are typically allocated for purposes such as education, transportation, healthcare, and public infrastructure, and they often come with certain conditions attached.

This framework allows for federal oversight and ensures that the funds are used to address national priorities while giving states the flexibility to implement programs according to their specific needs. The concept also emphasizes the relationship between different levels of government and how federal resources can influence state policies and initiatives.

Understanding grants-in-aid is crucial, as they represent a significant aspect of federalism in the United States, where financial relationships between the federal government and state governments shape public policy and governance.