Government Revenue

Question 11 • Fall 24 American Government/Civics IC

Which scenario correctly describes a federal earmark?

Answer

The US Congress gives Georgia $1 billion, but the money can only be used to repair highways in three counties.

The US Congress gives Georgia a grant of $500,000 to help the state government balance its budget.

The General Assembly uses revenue generated from lottery ticket sales to create a new pre-kindergarten program.

The General Assembly increases tobacco excise taxes to discourage people from smoking and to raise more revenue.

Explanation

A federal earmark is federal funding directed to a specific project or purpose, rather than money the recipient can spend broadly. In choice A, Congress gives Georgia money that must be used to repair highways in three counties, so the funding is earmarked for that project. The grant in B is for general budget support, while C and D describe state-level decisions.

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