Block grants have been defined as programs through which funds are provided to governmental units, such as state or local governments, based upon a statutory formula. They are usually provided for use in a defined, but broad, area and at the recipient's discretion. This document describes the historical development of these grants and the role of congressional, administrative, federal-state, and state-local relations in past and present performance of these programs. Additional definitions of block grants are outlined, and administrative goals and objectives for these programs are suggested. These funds are described as promoting economy and efficiency, program enlargements, decentralization, coordination, targeting, innovation, and control. The roles of the Law Enforcement Assistance Administration (LEAA), the Comprehensive Employment and Training Administration (CETA), the Community Development Block Grant Program, and Title XX (the 1974 Social Security Amendments) in providing block grants and assistance are highlighted. Evaluations of selected programs and relationships are presented. Charts are included. (JHP)