Federal Grants

In the United States, federal grants are monetary awards given to a recipient for financial assistance to allow them to carry out certain work for either the public good or a charitable purpose. When individuals receive federal grants, they have certain obligations and requirements that must be fulfilled otherwise legal repercussions can ensue. There are over 1,000 different grant programs from 26 different federal agencies.

These federal grants are not entitlements or benefits, but rather an award of financial assistance that help support of stimulate a public purpose which is authorized by United States law. Federal grants cannot be used to obtain services or property for the direct benefit of the federal government. 

These federal grants are often awarded to the county and state governments or even nonprofit groups who are 501(c)(3) organizations. Federal grants are never given to small businesses or individuals but rather just the tax-exempt nonprofit organizations. If an individual wants to fix an economic or social program in the community, a 501(c)(3) non corporation must be formed before applying for federal grants. The typical organizations that are eligible for a grant include: 

• Private institutions of higher education

• Independent school districts

• Institutions of higher education controlled by the public and the state

• State and local governments

• Township and city governments

• Special district governments

• Native American tribal governments that may or may not be federally recognized

• Those that are not institutions of higher education that have 501(c)(3)

• Institutions of higher education without 501(c)(3) status

• Certain businesses that meet specific size standards set by the United States Small Business Administration, which depends on the industry that the business is involved in

There are many different types of federal grants that are awarded such as those for projects like research, or categorical grants that are used for very specific purposes. There are also block grants where an agency that gets it has more flexibility on how the money can be used as opposed to a categorical grant. Earmark grants are another type of federal grant that are not from congressional appropriations that are not competitively bid. 

• Agriculture

• Regional Development

• Science & Technology & other Research & Development

• Energy

• Environment

• Food & Nutrition

• Arts

• Business & Commerce

• Humanities

• Income Security & Social Services

• Law, Justice & Legal Services

• Natural Resources

• Community Development

• Consumer Protection

• Transportation

• Health

• Housing

• Disaster Prevention & Relief

• Education

• Information & Statistics

• Employment, Labor & Training

• Recovery Act

• Other