Under the Economic Opportunity Act, the funding was directed toward grants to which of the following?

• A. Grants to state governments
• B. Direct cash transfers to individuals
• C. Grants to locally organized Community Action Agencies (CAAs)
• D. Funding for private charities

Answer: (C)

The funding under the Economic Opportunity Act was designed to empower local communities to shape and run antipoverty efforts. It created the Office of Economic Opportunity and distributed grants not to state governments or private charities, nor as direct cash transfers to individuals, but to locally organized Community Action Agencies. These CAAs Bringing together public, private, and nonprofit partners gave communities a say in designing and implementing local plans, making the approach responsive to specific needs of different neighborhoods. This local, collaborative funding model was intended to test and scale solutions tailored to the people it aimed to help, rather than centralizing control at higher levels or distributing immediate cash assistance.