What Kinds of Grants are Available?

Mandatory Grants

Several different types that fall within the parameters of mandatory grants. However, all mandatory grants have several things in common. First, money for these generally comes from federal agencies. These agencies are required, by law, to award these to recipients who fall within the eligibility and compliance requirements of a particular regulation. Award amounts are determined using a specific mathematical equation. Usually, this involves multiplying a fixed amount of money by a special mathematical index.

The index can be based upon a variety of different factors. These factors can include per capital income and population, although other program-specific factors may be taken into account, as well. In general, mandatory grants are awarded by state governments, although on occasion, they may be award by other institutions. Within the broader category of mandatory grants, we find several categories that are more specific. These include block, open-ended, and close-ended grants. Block grants are generally seen as mandatory grants to states.

It’s important to remember that block grants can may not just be one large “block” of money. Instead, they may consist of a few smaller, specific-purpose grants that have been blended together to create one “block.” Block grants tend to allow for a greater degree of flexibility when it comes to use of the funds. There are generally not as many administrative restrictions in place when a recipient is given a block grant.

Open-ended grants also fall within the category of mandatory grants. States are normally the recipient of open-ended grants. With open-ended grants, the state does not have to worry about exceeding the upper limit of the grant. Instead, the amount of the grants is based upon a set portion of the total cost that the grant needs to cover. These grants may also be referred to as “open-ended entitlement grants,” since individual citizens are considered to be entitled to funds under these awards.

Close-ended grants are essentially the opposite of open-ended grants. With close-ended grants, the federal government places a cap on how much the grant will cover.

Discretionary Grants: Grants that allow the federal government to select the grant recipient through a competitive process are referred to as discretionary grants. Unlike a mandatory grant, a discretionary grant is not guaranteed even if the minimum criteria are met. Judgment about who receives the grant can take place through negotiations between the grant office and the potential recipient, or it can be determined through mathematical formulas. Discretionary grants are frequently called “project grants.” The amount of funding available for discretionary grants is determined by Congress on an annual basis. Discretionary grants can be used to support several different types of projects.

These include demonstration, research, training, service, construction, and conference. These areas will be explored in greater detail below.

Demonstration: This specifically refers to the demonstration or establishment of new types of services.

Research: In this case, it is given to encourage the development of new knowledge, or to further evaluate existing knowledge.

Training: Grants given for training purposes are used to support the training of individuals who are seeking careers in areas that the grant-awarding agency sees as important. These may also be given to professional schools, where they can then be used to help schools create new program, or grow and improve current programs. Training awards may take on the form of individual fellowships and scholarships. In many cases, the recipient of these fellowships and scholarships must work for the awarding agency for a set period of time in exchange for receiving this financial aid.

Service: Grants may be awarded to help cover the expenses associated with creating, organizing, providing, or increasing the delivery of services. Construction: Grants may be awarded to aid in the building or expansion of a physical facility.

Conference: Finally, they may be awarded to support meetings that are consider crucial in advancing the fields of science and public health. Although this category is broadly labeled “conferences,” it can include virtually any sort of gathering, meeting, workshop, seminar, or other formal meeting where people might gather to swap ideas or further the study of some idea or problem.

For detailed information on Federal Government Grants, visit FederalGrantsTips.com.