Financial allocations to local governments by the federal or the state government to supplement the cost of a project is called?

A. revenue allocation
B. reimbursement
C. statutory allocation
D. matching grant

Correct Answer:

Option D – matching grant

Explanation

Financial allocations to local government by the federal or the state governments to supplement the cost of a project is called matching grants.

Local governments in turn give matching grants to communities or institutions for completion of certain projects such as schools.