In the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

, federal grants are economic aid issued by the

United States government The Federal Government of the United States of America (U.S. federal government or U.S. government) is the Federation#Federal governments, national government of the United States. The U.S. federal government is composed of three distinct ...

out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States. Grants are

federal assistance Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

to individuals,

benefit Benefit(s) may refer to: Arts and entertainment * ''Benefit'' (album), by Jethro Tull, 1970 * "Benefits" (''How I Met Your Mother''), a 2009 TV episode * "Benefits", a 2018 song by Zior Park * ''The Benefit'', a 2012 Egyptian action film Busin ...

s or

entitlements An entitlement is a government program guaranteeing access to some benefit by members of a specific group and based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, while an ...

. A grant is not used to acquire property or services for the federal government's direct benefit.

Grants Grant or Grants may refer to: People * Grant (given name), including a list of people and fictional characters * Grant (surname), including a list of people and fictional characters ** Ulysses S. Grant (1822–1885), the 18th president of the U ...

may also be issued by private

non-profit organization A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...

s such as

foundations Foundation(s) or The Foundation(s) may refer to: Common uses * Foundation (cosmetics), a skin-coloured makeup cream applied to the face * Foundation (engineering), the element of a structure which connects it to the ground, and transfers loads f ...

not-for-profit corporation A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation m ...

s or charitable trusts which are all collectively referred to as

charities A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, religious or other activities serving the public interest or common good). The legal definition of a cha ...

. Outside the United States grants, subventions or subsidies are used to in similar fashion by government or private charities to subsidize programs and projects that fit within the funding criteria of the grant-giving entity or donor. Grants can be unrestricted, to be used by the recipient in any fashion within the perimeter of the recipient organization's activities or they may be restricted to a specific purpose by the benefactor.

American definition

Federal grants are defined and governed by the Federal Grant and Cooperative Agreement Act of 1977,U.S. Government Publishing Office. "Federal Grant and Cooperative Agreement Act of 1977." Available at

https://www.govinfo.gov/content/pkg/STATUTE-91/pdf/STATUTE-91-Pg319.pdf). Accessed 19 November 2024. as incorporated i
Title 31 Section 6304 of the U.S. Code
A Federal grant is a:

"...legal instrument reflecting the relationship between the United States Government and a State, a local government, or other entity when 1) the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and 2) substantial involvement is not expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement."

When an awarding agency expects to be substantially involved in a project (beyond routine monitoring and technical assistance), the law requires use of a cooperative agreement instead. When the government is procurement, procuring goods or services for its own direct benefit, and not for a broader public purpose, the law requires use of a federal contract. The preference for use of goods, products, and materials produced in, and services offered in, the United States which applies to federal procurement policy is also applied to the use of federal grants.

Types of grants

Categorical grant Categorical grants, also called conditional grants, are grants issued by the United States Congress which may be spent only for narrowly defined purposes. They are the main source of federal aid to state and local governments and can be used onl ...

s may be spent only for narrowly defined purposes and recipients often must match a portion of the federal funds. 33% of categorical grants are considered to be formula grants. About 90% of federal aid dollars are spent for categorical grants. **Project grants are grants given by the government to fund research projects, such as a research project for medical purposes. An individual must acquire certain qualifications before applying for such a grant and the normal duration for project grants is three years. **

Formula grant A formula grant is a United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal c ...

s provide funds as dictated by a law. *

Block grant A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms ...

s are large grants provided from the federal government to state or local governments for use in a general purpose. * Earmark grants are explicitly specified in appropriations of the U.S.

Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...

. They are not competitively awarded and have become highly controversial because of the heavy involvement of paid

political lobbyists Lobbying is a form of advocacy, which lawfully attempts to directly influence legislators or government officials, such as regulatory agencies or judiciary. Lobbying involves direct, face-to-face contact and is carried out by various entities, inc ...

used in securing them. In FY1996 appropriations, the

Congressional Research Service The Congressional Research Service (CRS) is a public policy research institute of the United States Congress. Operating within the Library of Congress, it works primarily and directly for members of Congress and their committees and staff on a ...

found 3,023 earmarks totaling $19.5

billion Billion is a word for a large number, and it has two distinct definitions: * 1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is now the most common sense of the word in all varieties of ...

, while in FY2006 it found 12,852 earmarks totaling $64 billion. *

Pass-Through Grants Passthrough (or pass-through) may refer to: * Passthrough (electronics), a device used to pass an unmodified signal ** Analog passthrough ** Pass through device (automotive) ** Passthrough, a term used to describe the use of cameras with head-up d ...

- Pass-through grants are funds provided by the federal government to a primary recipient, such as a state government, which then distributes the funds to sub-recipients, such as local governments or nonprofit organizations. This type of grant allows for the decentralization of fund distribution and administration. For charitable grants and funds for schools and organizations see:

Grant writing Grant writing is the practice of completing an application process for a financial grant, which are often provided by governments, corporations, foundations, and trusts. The skill of grant writing is known as grantsmanship. Grants are often writte ...

and

. There are over 900 grant programs offered by the 26 federal grant-making agencies. These programs fall into 20 categories: * Agriculture * Arts * Business and Commerce * Community Development * Consumer Protection * Disaster Prevention and Relief * Education Regional Development * Employment, Labor, and Training * Energy * Environmental Quality * Food and Nutrition * Health * Housing * Humanities * Information and Statistics * Law, Justice, and Legal Services * Natural Resources * Science and Technology * Social Services and Income Security * Transportation

State and local government grants

State and local governments also provide grants to support various projects and initiatives within their jurisdictions. These grants often focus on areas such as economic development, education, public safety,

healthcare Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...

, and infrastructure.

State grants

State grants are financial awards provided by individual states to support projects and programs that benefit residents. These grants can be used for purposes such as education, environmental conservation, public health, and community development. Each state has its own agencies and programs that administer these grants.

Local government grants

Local government grants are offered by counties, cities, and municipalities to support local initiatives. These grants often target community-specific needs, such as housing, transportation, public safety, and cultural programs. Local governments may also pass through federal and state grant funds to local organizations.

Private foundation grants

Private foundations are nonprofit organizations that provide grants to support various causes and initiatives. These foundations are typically funded by individuals, families, or corporations and have specific focus areas, such as education, health, social services, arts, and the environment.

Independent foundations

Independent foundations, also known as private foundations, are established by individuals or families and operate independently of government control. Examples include the

Bill & Melinda Gates Foundation The Gates Foundation is an American private foundation founded by Bill Gates and Melinda French Gates. Based in Seattle, Washington, it was launched in 2000 and is reported to be the third largest charitable foundation in the world, holding $ ...

and the Ford Foundation. These foundations often have substantial endowments and provide grants to nonprofit organizations, educational institutions, and other entities that align with their mission and goals.

Corporate foundations

Corporate foundations are philanthropic arms of corporations that provide grants to support charitable activities. These foundations are funded by the parent company and focus on areas that align with the corporation’s values and business interests. Examples include the Coca-Cola Foundation and the

Walmart Foundation Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...

Community foundations

Community foundations are public charities that provide grants to support local community needs. These foundations pool donations from multiple sources, including individuals, families, and businesses, to create endowment funds that support a wide range of community initiatives. Examples include the Cleveland Foundation and the Silicon Valley Community Foundation.

Corporate grants

In addition to corporate foundations, many corporations provide grants directly through their corporate social responsibility (CSR) programs. These grants are often used to support community development,

environmental sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...

, education, and employee volunteerism.

Direct corporate grants

Corporations may offer direct grants to nonprofit organizations, schools, and other entities. These grants are typically aligned with the company’s CSR goals and business priorities. For example, a technology company might provide grants to support STEM education programs.

In-kind donations

Some corporations provide in-kind donations instead of or in addition to monetary grants. In-kind donations can include products, services, technology, and expertise that support the recipient organization's operations and programs.

Nonprofit organization grants

Many nonprofit organizations provide grants to support specific causes and initiatives. These organizations raise funds from various sources, including private donors, foundations, and government grants, and redistribute them through grant programs.

Nonprofit grantmakers

Nonprofit grantmakers, such as the

United Way United Way is an international network of over 1,800 local nonprofit organization, nonprofit fundraising affiliates. Prior to 2015, United Way was the largest nonprofit organization in the United States by donations from the public. Individual Un ...

and the American Heart Association, provide grants to support programs and services that align with their mission. These grants often focus on areas such as health, education, social services, and

disaster relief Emergency management (also Disaster management) is a science and a system charged with creating the framework within which communities reduce vulnerability to hazards and cope with disasters. Emergency management, despite its name, does not actu ...

Philanthropic networks

Philanthropic networks and collaboratives, such as Grantmakers for Education and the Environmental Grantmakers Association, consist of multiple foundations and grantmakers that work together to fund projects and initiatives within specific focus areas.

Educational institution grants

Educational institutions, including colleges and universities, often provide grants to support research
scholarships
and educational programs. These grants are funded through a combination of federal and state grants, private donations, and institutional funds.

Research grants

Many universities and research institutions offer grants to support academic research projects. These grants are often funded by federal agencies, private foundations, and corporate sponsors. Examples include research grants provided by the National Science Foundation (NSF) and the National Institutes of Health (NIH).

Scholarship and fellowship grants

Educational institutions provide scholarships and fellowships to support students’ educational pursuits. These grants can be merit-based, need-based, or specific to certain fields of study. They are funded through endowments, private donations, and institutional funds.

Information provided in grant applications

Award An award, sometimes called a distinction, is given to a recipient as a token of recognition of excellence in a certain field. When the token is a medal, ribbon or other item designed for wearing, it is known as a decoration. An award may be d ...

information in grants generally includes: * Estimated funding * Expected number of awards * Anticipated award size * Period of performance Eligibility information includes: * Eligible applicants * Cost sharing

Criticism

Federal and state grants frequently receive criticism due to what are perceived to be excessive regulations and not include opportunities for

small business Small businesses are types of corporations, partnerships, or sole proprietorships which have a small number of employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being ...

, as well as for often giving more money per person to smaller states regardless of population or need. These criticisms include problems of overlap, duplication, excessive categorization, insufficient information, varying requirements, arbitrary federal decision-making, and grantsmanship (a funding bias toward entities most familiar with how to exploit the system, rather than to those most in need). Research also suggests that federal grants are often allocated politically, with more money going to areas represented by the political party commanding a majority in Congress or that controls the presidency.Napolio, Nicholas G. 2021. “Implementing Presidential Particularism: Bureaucracy and the Distribution of Federal Grants.” Political Science Research and Methods. Cambridge University Press, 1–11. doi:10.1017/psrm.2021.29.

Examples of grants by type

Block

Community Development Block Grant The Community Development Block Grant (CDBG), one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities with the stated goal of providing affordable housing, anti- ...

Alcohol, Drug Abuse, and Mental Health Services Block Grant The Substance Abuse Prevention and Treatment Block Grant (SABG or SAPT) and the Community Mental Health Services Block Grant (MHBG or CMHS) are federal assistance block grants awarded by SAMHSA. History The Alcohol, Drug Abuse, and Mental Healt ...

(ADMS) **Substance Abuse Prevention and Treatment Block Grant (SABG or SAPT) **Community Mental Health Services Block Grant (MHBG or CMHS) * Local Law Enforcement Block Grant *

National Institutes of Health The National Institutes of Health (NIH) is the primary agency of the United States government responsible for biomedical and public health research. It was founded in 1887 and is part of the United States Department of Health and Human Service ...

for bioscience research *

National Science Foundation The U.S. National Science Foundation (NSF) is an Independent agencies of the United States government#Examples of independent agencies, independent agency of the Federal government of the United States, United States federal government that su ...

for physical science research

Formulary

Aid to Families with Dependent Children Aid to Families with Dependent Children (AFDC) was a federal assistance program in the United States in effect from 1935 to 1997, created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Ser ...

Job Training Partnership Act Work, labor (labour in Commonwealth English), occupation or job is the intentional activity people perform to support the needs and desires of themselves, other people, or organizations. In the context of economics, work can be seen as the huma ...

Categorical

Head Start Program Head Start is a program of the United States Department of Health and Human Services that provides comprehensive early childhood education, health, nutrition, and parent involvement services to low-income children and families. It is the olde ...

Magnet Schools Assistance Program Magnet Schools Assistance is a Federal grants program administered by the U.S. Department of Education. The program is designed to help desegregate public schools. The program is defined in the Elementary and Secondary Education Act of 1965, in ...

References

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External links

Grants.gov
Official U.S. government site for finding grants for non-profits

Find small business grants and loans from government agencies

Grants Management Line of Business
ED.gov Federal Pell Grant Program
Official site for the federal pell grant Public finance Federal assistance in the United States Grants (money) Subsidies