A grant-in-aid is money coming from a central government for a specific project. Such funding is usually used when the government and the legislature decide that the recipient should be publicly funded but operate with reasonable independence from the state. In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

, most bodies in receipt of grants-in-aid are

non-departmental public bodies In the United Kingdom, non-departmental public body (NDPB) is a classification applied by the Cabinet Office, Treasury, the Scottish Government and the Northern Ireland Executive to public sector organisations that have a role in the process of na ...

. A grant-in-aid has funds allocated by one level of government to another level of government that are to be used for specific purposes. Such funds are usually accompanied by requirements and standards set by the governing body for how they are to be spent. An example of this would be how the

US Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washingto ...

has required states to raise the drinking age for alcohol from 18 to 21 for the individual states to continue to qualify for federal funds for

interstate highways The Dwight D. Eisenhower National System of Interstate and Defense Highways, commonly known as the Interstate Highway System, is a network of controlled-access highways that forms part of the National Highway System in the United States. Th ...

within each state.Peters, Gerhard; Woolley, John T
"Ronald Reagan: 'Remarks on Signing a National Minimum Drinking Age Bill,' July 17, 1984"
''The American Presidency Project''. University of California - Santa Barbara.

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{{DEFAULTSORT:Grant-In-Aid Government finances Grants (money)