Federal Aid to the States There are two general types of grants-in-aid: Block grants: Money given for a fairly broad purpose with few strings attached. Categorical grants: Money given for a specific purpose that comes with restrictions concerning how the money should be spent.

What are the main types of grants?

There are two main types of grants available through the federal government: 1) Categorical and 2) Block Grants, that also include Project, Formula and Matching Grants. Block grants provide funding for eligible activities identified in authorizing legislation.

What type of grants do states prefer?

Block grants are given to states or communities and they decide how to spend the money. States prefer block grants because there are less strings attached and the money can be used for a broader purpose.

What is the most common type of grant?

PROGRAM AND PROJECT GRANTS
PROGRAM AND PROJECT GRANTS Program and project grants are the most common type of grant award. They are more restrictive, since grant funds can only be used to create, support, or grow the programs or projects described in your grant.

What are some examples of Grant in aid?

Federal grants can take on a variety of forms and have different requirements. For instance, a university might make a federal grant in aid to support a program that lowers the tuition rate to make it more affordable for military veterans and their spouses.

Who are the recipients of a federal grant?

A federal grant is financial aid awarded to fund a specific project or program. Recipients include state, local, and municipal governments, as well as individuals. Federal grants in aid are funded …

What kind of grants do you get for college?

Federal Supplemental Education Opportunity Grants are need-based grants provided to low-income undergraduate students to promote access to postsecondary education. Priority is given to students with exceptional financial need.

How much does the federal government spend on grants in aid?

In fiscal 2004, federal grant-in-aid outlays totaled $406 billion, or about 18 percent of all federal outlays and equivalent to 25 percent of total state and local government expenditures.