In the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

, federal grants are economic aid issued by the

United States government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...

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 In the United States, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, or activity provided by the federal government that directly assists domestic governme ...

to individuals, benefits or

entitlement An entitlement is a provision made in accordance with a legal framework of a society. Typically, entitlements are based on concepts of principle ("rights") which are themselves based in concepts of social equality or enfranchisement. In psycholo ...

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

Grants Grant or Grants may refer to: Places * Grant County (disambiguation) Australia * Grant, Queensland, a locality in the Barcaldine Region, Queensland, Australia United Kingdom *Castle Grant United States * Grant, Alabama *Grant, Inyo County, ...

may also be issued by private

non-profit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

s such as foundations,

not-for-profit corporation A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

s or charitable trusts which are all collectively referred to as charities. 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, 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 procuring goods or services for its own direct benefit, and not for a broader public purpose, the law requires use of a federal contract.

Types of grants

* Categorical grants 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 grants provide funds as dictated by a law. * Block grants 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 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 its only current meaning in English. * 1,000,000,000,000, i. ...

, while in FY2006 it found 12,852 earmarks totaling $64 billion. 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 provided by an institution such as a government department, corporation, foundation, or trust. Such application processes are often referred to as either a ...

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

Information provided in grant applications

Award An award, sometimes called a distinction, is something 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 awar ...

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, 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-po ...

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 Local Law Enforcement Block Grants (LLEBG) were federal assistance block grant programs provided by the United States Department of Justice to local governments, which would then use the funds to support public safety or crime prevention effo ...

National Institutes of Health The National Institutes of Health, commonly referred to as NIH (with each letter pronounced individually), is the primary agency of the United States government responsible for biomedical and public health research. It was founded in the late ...

for bioscience research *

National Science Foundation The National Science Foundation (NSF) is an independent agency of the United States government that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National ...

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 The Job Training Partnership Act of 1982 (JTPA, , , et seq.) was a United States federal law passed October 13, 1982, by Congress with regulations promulgated by the United States Department of Labor during the Ronald Reagan administration. The law ...

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. The program's s ...

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

{{Reflist

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