What are Government Grants? Advantages and Disadvantages of Government Grants

What are Government Grants? Advantages and Disadvantages of Government Grants

A grant is a type of fund that is usually given by companies, nonprofit organizations, and in some cases the government. If a grant is provided by the government then it is considered as a government grant. A government grant has both advantages and disadvantages. The best part of government grants is they are non-repayable, widely available, and boosts credibility. However, getting a government grant is a very lengthy process and you have to abide by lots of rules!

Definition of Government Grants

You can think of government grants as financial awards. Usually, the federal government, the state government, or the local government support and provide financial support to various projects that are beneficial for society. According to U.S. Government Services and Information

“A grant is one of the ways the government funds ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs.”

You should keep in mind that a government grant won’t provide any technical or other financial support. You will only get one-time financial support from government grants. If you receive a government grant then you don’t have to repay the money. There are more than 1,000 grant programs available in the USA that are monitored by Twenty-six federal agencies. These grant programs provide funding for the arts, sciences, educational institutions, etc.

Who is Eligible for Government Grants in the USA?

Individuals and various types of organizations are eligible for government grants in the USA. For example –

  • State governments
  • County governments
  • City or township governments
  • Special district governments
  • Native American tribal governments (federally recognized)
  • Native American tribal governments (other than federally recognized)
  • Independent school districts
  • Public and state-controlled institutions of higher education
  • Private institutions of higher education
  • Public housing authorities
  • Indian housing authorities
  • Nonprofits having a 501(c) (3) status with the Internal Revenue Service (IRS)
  • Nonprofits that do not have a 501(c) (3) status with the IRS
  • Organizations other than small businesses
Who is Eligible for Government Grants in the USA?
Who is Eligible for Government Grants in the USA?

Types of Government Grants in the USA

There are quite a few types of government grants available in the USA. They are –

  1. Categorical Grants: The US government offers various grants depending on the category and this type of grant is known as categorical grants.
  2. Project Grants: USA government offers this type of grant for various research projects. If the duration of the project is a minimum of three years then it might qualify for the project grants.
  3. Formula Grants: This type of grant is offered to a precise formula in the legislation creating the program.
  4. Block Grants: These types of grants are large grants and they are offered by the federal government to the state or local governments.
  5. Earmark Grants: These types of grants are specified in appropriations of the U.S. Congress.

List of USA Grant Categories

In the USA, there are 900 grant programs available and they are offered in 20 categories. They are –

  1. Agriculture
  2. Arts
  3. Business and Commerce
  4. Community Development
  5. Consumer Protection
  6. Disaster Prevention and Relief
  7. Education Regional Development
  8. Employment, Labor, and Training
  9. Energy
  10. Environmental Quality
  11. Food and Nutrition
  12. Health
  13. Housing
  14. Humanities
  15. Information and Statistics
  16. Law, Justice, and Legal Services
  17. Natural Resources
  18. Science and Technology
  19. Social Services and Income Security
  20. Transportation  

State by State Data of Governments Grants in the USA

Name of the StateFederal Funding Per ResidentTotal Federal FundingBenefits RecipientsMedian Household Income
Virginia
Kentucky
New Mexico
West Virginia
Alaska
Mississippi
Alabama
Maryland
Maine
Hawaii
Arkansas
South Carolina
Arizona
Oklahoma
Missouri
Montana
Louisiana
Vermont
Tennessee
Idaho
North Carolina
Delaware
Ohio
Oregon
Michigan
Indiana
Pennsylvania
Georgia
Rhode Island
Florida
Kansas
South Dakota
Nevada
Iowa
Minnesota
Wyoming
Wisconsin
Texas
Utah
California
Colorado
Nebraska
Washington
New Hampshire
Illinois
North Dakota
New York
Massachusetts
New Jersey
Connecticut
$10,301
$9,145
$8,692
$7,283
$7,048
$6,880
$6,694
$6,035
$5,572
$5,270
$5,080
$5,008
$4,430
$3,986
$3,949
$3,808
$3,785
$3,741
$3,591
$3,428
$3,358
$2,892
$2,750
$2,477
$2,474
$2,359
$2,299
$2,253
$2,228
$2,187
$1,983
$1,409
$1,140
$1,105
$959
$670
$536
$304
$296
$12
-$95
-$164
-$184
-$234
-$364
-$720
-$1,792
-$2,343
-$2,368
-$4,000
$1.77 billion
$70.80 billion
$31.70 billion
$24.60 billion
$13.00 billion
$37.80 billion
$65.80 billion
$105.10 billion
$17.40 billion
$19.90 billion
$35.10 billion
$59.70 billion
$82.80 billion
$45.10 billion
$72.30 billion
$12.20 billion
$52.00 billion
$8.00 billion
$76.30 billion
$17.50 billion
$113.10 billion
$11.50 billion
$125.70 billion
$45.70 billion
$108.40 billion
$67.80 billion
$155.80 billion
$104.50 billion
$12.60 billion
$237.70 billion
$31.30 billion
$9.30 billion
$28.70 billion
$29.90 billion
$64.40 billion
$7.10 billion
$55.40 billion
$269.00 billion
$23.90 billion
$436.10 billion
$57.50 billion
$17.70 billion
$80.50 billion
$15.00 billion
$131.80 billion
$7.90 billion
$220.60 billion
$78.70 billion
$97.70 billion
$41.10 billion
0.08%
0.14%
0.17%
0.17%
0.11%
0.15%
0.14%
0.10%
0.13%
0.11%
0.12%
0.12%
0.11%
0.13%
0.11%
0.09%
0.16%
0.11%
0.14%
0.10%
0.12%
0.10%
0.13%
0.15%
0.13%
0.09%
0.13%
0.13%
0.15%
0.14%
0.08%
0.09%
0.12%
0.10%
0.08%
0.06%
0.11%
0.12%
0.07%
0.09%
0.08%
0.08%
0.12%
0.07%
0.13%
0.06%
0.15%
0.12%
0.09%
0.12%
$74,222
$50,589
$49,754
$46,711
$77,640
$45,081
$50,536
$84,805
$57,918
$81,275
$47,597
$53,199
$58,945
$52,919
$55,461
$54,970
$49,469
$61,973
$53,320
$55,785
$54,602
$68,287
$56,602
$62,818
$57,144
$56,303
$61,744
$58,700
$67,167
$55,660
$59,597
$58,275
$60,365
$60,523
$71,306
$64,049
$61,747
$61,874
$71,621
$75,235
$72,331
$61,439
$73,775
$76,768
$65,886
$64,894
$68,486
$81,215
$82,545
$78,444

10 USA States with Highest Total Government Grants

Name of the StateTotal Federal Funding
California
Texas
Florida
New York
Virginia
Pennsylvania
Illinois
Ohio
North Carolina
Michigan
$43.61 billion
$26.90 billion
$23.77 billion
$22.06 billion
$17.68 billion
$15.58 billion
$13.18 billion
$12.57 billion
$11.31 billion
$10.84 billion

10 USA States with Lowest Total Government Grants

Name of the StateTotal Federal Funding
New Jersey
Massachusetts
New York
North Dakota
Illinois
New Hampshire
Washington
Nebraska
Colorado
-$2,368
-$2,343
-$1,792
-$720
-$364
-$234
-$184
-$164
-$95
$12

10 USA States with Highest Funding per Resident

Name of the StateTotal Federal Funding
Virginia
Kentucky
New Mexico
West Virginia
Alaska
Mississippi
Alabama
Maryland
Maine
Hawaii
$10,301
$9,145
$8,692
$7,283
$7,048
$6,880
$6,694
$6,035
$5,572
$5,270

Advantages and Disadvantages of Government Grants

Advantages of Government GrantsDisadvantages of Government Grants
Government grants are less restrictive and there are no hidden feesGetting a government grant is a very time-consuming process; you might need to spend lots of time researching the granting agency before writing the grant
The award amounts of a government grant are often substantial because you might get generous amounts of moneyThere is a lot of competition for government grants and the success rate is very low 
Government grants are non-repayable means you don’t have to pay back the moneyUsually, the funds of a government grant are low compared to other types of grants
There are various types of government grants available; you can easily apply for one that suits your requirementReporting requirements are also very specific for a government grant
Getting government grants is considered highly credibleApplying for a government grant requires lots of paper works
Receiving a government grant can open the opportunity of getting other types of grantsIf you get a government grant then you will be contractually bound to the government

Examples of USA Government Grants

  • Fund for The Improvement of Postsecondary Education (FIPSE)
  • Community Engagement and Edutainment in South Africa – South Africa Addendum APS
  • Supporting Tribal Youth: Training and Technical Assistance and Youth Leadership Development
  • Long-term Exceptional technical Assistance Project (LEAP) Local
  • The fiscal Year 2022 Flood Mitigation Assistance (FMA)
  • Maternal Health Research Centers of Excellence
  • Scholarly Editions and Scholarly Translations
  • NRCS’s Wetland Mitigation Banking Program for Federal Fiscal Year 2022
  • Advancing Health and Malaria Services
  • USAID/Ethiopia Civic Engagement Activity
  • RFI Ultra-Fast-Triggered Semiconductor Devices for Enhanced System Resiliency
  • Countering Stigma and Prejudice Against the Transgender Community
  • Strengthening Landscapes Management and Conservation
  • Reproductive Scientist Development Program (RSDP)
  • NEA Literature Fellowships: Translation Projects, FY2024
  • Community Food Projects Competitive Grant Program
  • Small Rural Hospital Improvement Program (SHIP)
  • The fiscal Year 2022 Tribal Wetland Program Development Grants
  • Landscape Scale Restoration Grant Program 2023 Southern and IITF
  • Advancing Research to Understand Congenital Malformations
  • Allergy and Asthma Statistical and Clinical Coordinating Center
  • Emergency Medical Services for Children State Partnership
  • AHRQ Mentored Clinical Scientist Research Career Development Award
  • NHPRC-Mellon Planning Grants for Collaborative Digital Editions
  • Fiscal Year (FY) 2022 National Incident Management System (NIMS)
  • Regional Probation and Parole Liaison Program
  • Global Fund for Women – Localization Activity
  • FY 2022 Operation Allies Welcome Airport Assistance Grant        
  • Geriatrics Academic Career Awards
  • Next-Generation Microelectronics Manufacturing (NGMM)
  • Native Hawaiian Resource Center on Domestic Violence

References:

https://en.wikipedia.org/wiki/Federal_grants_in_the_United_States

https://www.grants.gov/web/grants/learn-grants/grant-eligibility.html

https://worldpopulationreview.com/state-rankings/federal-aid-by-state

Last Updated on December 25, 2023 by Magalie D.

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