Federal grant money refers to the grant or aid that is provided by the U.S government to support social work for the public. The history of the federal grant money dates back to the era when the U.S Constitution was not even drafted. The first federal government grant money was awarded to purchase land. The federal grants are usually given to the local and state governments to help them in the social work. In the event of natural calamity and disasters, civil disturbances the government supports the local and state governments through these grants.
The U.S. government has categorized the entities that are eligible for application of the federal grant money. They are the state governments, local governments, territories, non-profit organizations and institutions, individuals and business owners. The different categories have different spheres of work which make the respective entities suitable to get the grant. In case of state governments, the grants are given to help them in developing the state. Federal government grant money is offered to the local governments to help them in modernization and infrastructural development. The territories receive money to protect the security of the nation. The non-profitable organizations are also eligible for federal grants. These grants are provided for the development of the society. The traders and businessmen also collect grants from the federal government to start a business.
The process for application of federal government grants is not an easy one. There are various agencies which help you to get the federal government grant money. Billions of applications are processed everyday but only handful of them qualifies and receives the federal grant money from the U.S government. The individuals who apply for the grant sometimes hire professionals to write the proposal for them. The applicant should have thorough knowledge about the application procedure because it is very important for qualifying for the federal grants.
The government has categorized four broader spectrums for fund allocation in the case of federal government grants. These are formula grants, project grants, direct payments for specific use and direct payments for unhindered use. The formula grant is usually given to fund big infrastructural and development projects whereas the project grants are given to researchers, scholars for specific fellowship projects. The third category grant is given to individuals, private organizations to support and fund a particular activity. There are direct payment grants with unrestricted use which are usually given to fund the federal employee pension system.
So, the federal government grant money is provided to meet specified needs.
