"Categorical funds" refers to specific money allocated for a particular purpose or category. It is money that is set aside for a specific use and cannot be used for anything else. Full definition
The state indicated that services were disconnected and siloed, historically labeling children because of categorical funding streams and that their goal was to create a system of systems to integrate services. (zerotothree.org)
Charter schools are entitled to federal categorical funding for which their students are eligible, such as Title I and Special Education monies. (excelacademy.org)
Because the proposal collapses categorical funding into the per pupil foundation, the impact of that -LSB-...] (oaklandschoolsmi.com)