Federal grant
Encyclopedia
In the United States, federal grants are economic aid
issued by the United States government 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 or loan
s to individuals, benefit
s or entitlement
s. A grant is not used to acquire property or services for the federal government's direct benefit.
Grants
may also be issued by private non-profit organization
s such as foundations
, not-for-profit corporations or charitable trust
s 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.
Federal grants are defined and governed by the Federal Grant and Cooperative Agreement Act of 1977, as incorporated in Title 31 Section 6304 of the U.S. Code. A Federal grant is a:
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.
For charitable grants and funds for schools and organizations see: Grant writing
and Grants.
There are over 900 grant programs offered by the 26 federal grant-making agencies. These programs fall into 21 categories:
information in grants generally includes:
Eligibility information includes:
, 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).
Aid
In international relations, aid is a voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country....
issued by the United States government out of the general federal revenue. A federal grant is an award
Award
An award is something given to a person or a group of people to recognize excellence in a certain field; a certificate of excellence. Awards are often signifiedby trophies, titles, certificates, commemorative plaques, medals, badges, pins, or ribbons...
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 or loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s to individuals, benefit
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...
s or entitlement
Entitlement
An entitlement is a guarantee of access to benefits based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with legal framework of a society...
s. A grant is not used to acquire property or services for the federal government's direct benefit.
Grants
Grant (money)
Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...
may also be issued by private non-profit organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
s such as foundations
Foundation (charity)
A foundation is a legal categorization of nonprofit organizations that will typically either donate funds and support to other organizations, or provide the source of funding for its own charitable purposes....
, not-for-profit corporations or charitable trust
Charitable trust
A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization".-United States:...
s 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.
Federal grants are defined and governed by the Federal Grant and Cooperative Agreement Act of 1977, as incorporated in 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
- Block grantsBlock grantIn a fiscal federal form of government, a block grant is a large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent...
are large grants provided from the federal government to state or local governments for use in a general purpose.
- 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 grantsFormula GrantA formula grant is a United States federal grant specifying a precise formula in the legislation creating the program. Formula Grants include quantifiable elements, such as population, amount of tax effort, proportion of population unemployed or below poverty level, density of housing, or rate of...
provide funds as dictated by a law.- Categorical grantsCategorical grantCategorical grants are grants, issued by the United States Congress, which may be spent only for narrowly-defined purposes. Additionally, recipients of categorical grants are often required to match a portion of the federal funds...
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.
- Categorical grants
- Earmark grantsEarmark (politics)In United States politics, an earmark is a legislative provision that directs approved funds to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees...
are explicitly specified in appropriationAppropriation (law)In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....
s of the U.S. CongressUnited States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. They are not competitively awarded and have become highly controversial because of the heavy involvement of paid political lobbyistsLobbyingLobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
used in securing them. In FY1996 appropriations, the Congressional Research ServiceCongressional Research ServiceThe Congressional Research Service , known as "Congress's think tank", is the public policy research arm of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a...
found 3,023 earmarks totaling $19.5 billion1000000000 (number)1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
, 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
Grant writing refers to the practice of completing an application processes for funding provided by an institution such as a government department, corporation, foundation or trust. Such application processes are often referred to as either grant "proposals" or "submissions". Successful grant...
and Grants.
There are over 900 grant programs offered by the 26 federal grant-making agencies. These programs fall into 21 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
AwardAward
An award is something given to a person or a group of people to recognize excellence in a certain field; a certificate of excellence. Awards are often signifiedby trophies, titles, certificates, commemorative plaques, medals, badges, pins, or ribbons...
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 businessSmall business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
, 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).
Block
- Community Development Block GrantCommunity Development Block GrantThe Community Development Block Grant , one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development...
- Alcohol, Drug Abuse, and Mental Health Services Block GrantAlcohol, Drug Abuse, and Mental Health Services Block GrantThe Alcohol, Drug Abuse, and Mental Health Services Block Grant is a federal assistance block grant given by the United States Department of Health and Human Services.-External links:*...
- Local Law Enforcement Block GrantLocal Law Enforcement Block GrantLocal Law Enforcement Block Grants 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 efforts. It was part of the Bureau of Justice Assistance...
Formulary
- Aid to Families with Dependent ChildrenAid to Families with Dependent ChildrenAid to Families with Dependent Children was a federal assistance program in effect from 1935 to 1996, which was administered by the United States Department of Health and Human Services...
- Job Training Partnership Act
- Work Incentive Program
Categorical
- Head Start
- Urban Forestry Assistance
- Asbestos School Hazards Abatement
See also
- Grant writingGrant writingGrant writing refers to the practice of completing an application processes for funding provided by an institution such as a government department, corporation, foundation or trust. Such application processes are often referred to as either grant "proposals" or "submissions". Successful grant...
- Federally Funded Research and Development CenterFederally funded research and development centerFederally Funded Research and Development Centers conduct research for the United States Government. They are administered in accordance with U.S Code of Federal Regulations, Title 48, Part 35, Section 35.017 by universities and corporations....
(FFRDC) - Funding Opportunity AnnouncementFunding Opportunity AnnouncementA funding opportunity announcement is a notice in Grants.gov of a federal grant funding opportunity.Funding opportunity announcements can be found at Grants.gov/FIND and this website lets organizations apply for grants for over 1,000 grant programs from 26 federal agencies.Each FOA includes...
- Small Business AdministrationSmall Business AdministrationThe Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses...
External links
- Grants.gov: Official U.S. government site for finding grants for non-profits
- Business.gov Loans and Grants Search: Find small business grants and loans from government agencies
- Presidential Initiative: Grants Management Line of Business
- ED.gov Federal Pell Grant Program: Official site for the federal pell grant