What are Federal Grants?

A Federal Grant is an award of financial assistance from a Federal agency to a recipient out of the general federal revenue to carry out a public purpose of support or stimulation authorized by a law of the United States. A grant is not used to acquire property or services for the Federal government's direct benefit. Twenty-six Federal agencies annually offer over 1,000 grant programs in various subject areas.

Grants may also be issued by private non-profit organizations such as foundations, not-for-profit corporations 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.

Types of Federal Grants

Project grants are awarded competitively. Project grants are the most common form of grant and a large number are found in scientific research, technology development, education (such as Federal Pell Grants), social services, the arts and health care.

Formula Grants provide funds as dictated by a law.

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.

Block grants combine categorical grants into a single program. Recipients of block grants have more leeway in using funds than recipients of individual categorical grants. All block grants are considered to be formula grants.

Earmark grants are explicitly specified in appropriations of the U.S. Congress. 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 found 3,023 earmarks totalling $19.5 billion, while in FY2006 it found 12,852 earmarks totalling $64 billion.

Visit our federal grants by assistance type page to see more types of assistance and browse federal grants.

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