Funding Grants

Funding Grants

The term assistance (or benefits) is defined by the federal government as:

" The transfer of money, property, services, or anything of value, the principal purpose of which is to accomplish a public purpose of support or stimulation authorized by Federal statute,…and includes, but is not limited to, grants, loans, loan guarantees, scholarships, mortgage loans, insurance…, property, technical assistance, counseling, statistical, and other expert information; and service activities of regulatory agencies. "

 

Federal assistance programs

To distribute the Federal assistance (the funding grants) in an organized manner, the federal government provides assistance through federal agencies. It is the agency’s responsibility to adequately provide assistance, as well as manage, account, and monitor the responsible use of federal funds which were utilized for that assistance. The agencies then supply the assistance to beneficiaries (known as recipients, see below), such as States, hospitals, poverty-stricken families, etc., through hundreds of individual programs. These programs are defined by the federal government as: “any function of a Federal agency that provides assistance or benefits (funding grants) for: (1) a State or States, territorial possession, county, city, other political subdivision, grouping, or instrumentality thereof; (2) any domestic profit or nonprofit corporation or institution; or (3) an individual; other than an agency of the Federal government”. Therefore, programs (or “functions”) can refer to any number of activities or services provided by agencies, such as building a bridge, providing food or medicine vouchers to the poor, or providing counseling to violence victims. Programs are assigned to offices within a federal agency and may include administrative personnel which work directly or indirectly with the program.

Each program of funding grants, is created with a specific purpose and has unique operations and activities, (i.e., no program is made for the same purpose and to operate the same way as a previously existing program) and it is assigned an official name for which to differentiate them from each other. A program may be called by a different term than its official name by the general public, by an entity, or even by law or regulation; such as by the type of activity or service it engages, by a specific project name (e.g., the Big Dig tunnel project), or any other similar term. This type of name, title or term given to a funding grant program is called the “popular name”. However, the official name of program is standardized within the federal government so that federal agencies can maintain better accountability of their assigned assistance.

For example, an individual who receives rent assistance payments through the Section 8 Housing Choice Voucher program might not know the exact official name of the program, and may simply call it the “rent subsidizing” program, due to its type of activity or service. However, since there are many other rent subsidizing programs provided by the federal government, standard program names of funding grants must be maintained in order to differentiate them. In this case, funding grant programs such as Supportive Housing for the Elderly (Sec. 202), which is a project-based rental assistance program exclusively for the elderly and Section 8 Housing Assistance Payments Program-Special Allocations, a rent assistance program usually tied to public housing projects, also engage in the activity of rent subsidizing.

 

Examples of Federal assistance funding grants programs

 

Federal grants and awards

Programs administer assistance by “granting” or “awarding” a portion of the funding grants assistance to recipients. These are called Federal grants or awards. Recipients must first apply for the award directly to the federal agency which administers the program. The agency must then determine the amount of assistance to be awarded and notifies the recipient of the award. In order for an award to be considered official, a contract or grant agreements is entered between the agency and the recipient where details of the use of the award and the restrictions and limitations of the award are included.

Federal awards may specify a time period during which the recipient may use the funding grants assistance which is called the Period of Availability of Federal Funds. Most grants have a term of one year (although some may have a longer lifespan, even indefinitely), and the recipient must use the assistance within that timeframe. This is done because federal assistance is tied to the federal government’s budget process, and any funds not used by a recipient within the specified time limit is reverted to other uses.

As a condition of receiving Federal awards or grants, recipients must agree to comply with the applicable laws and regulations related to the program and its agency, as well as any provisions included in the contracts and grant agreements entered between the recipient and the agency. Failure to do so may lead to sanctions, including fines and penalties, exclusion or suspension from participating in federal assistance programs and activities, and/or criminal charges. Most federal program regulations for which agencies and recipients must always comply are compiled in the Code of Federal Regulations, with summaries and guidance for these regulations contained in OMB Circular letters.

Types of federal funding grants

Given the enormous size of federal assistance provided, the Federal government has designed different types of grants, each with its own unique way of awarding and/or operating:

  • Project grants are awarded competitively. Project grants are the most common form of grants and a large number are found in scientific research, technology development, education (such as Federal Pell Grants), social services, the arts and health care types of assistance.
  • Formula grants provide funds as dictated by a law. Examples of this type of grant includes Aid to Families with Dependent Children and the Job Training Partnership Act, and the Work Incentive Program. These can be sub-categorized as either Categorical or Block:
    • Categorical grants may be spent only for narrowly defined purposes and recipients often must match a portion of the federal funds.
    • Block grants combine categorical grants into a single program. Examples of this type of grant includes the Community Development Block Grant and the Alcohol, Drug Abuse, and Mental Health Services Block Grant. Recipients of block grants have more leeway in using funds than recipients of individual categorical grants.
  • Earmark grants are explicitly specified in appropriations of the U.S. Congress. They are not competitively awarded, and have become controversial because of the involvement of political lobbyists used in the process of awarding them to recipients. In fiscal year 1996 appropriations, the Congressional Research Service found 3,023 earmarks totaling $19.5 billion, while in FY2006 it found 12,852 earmarks totaling $64 billion.

 

Recipients of Funding Grants

A recipient of federal awards or funding grants is defined as any non-federal entity that receives federal assistance and which is part of, and/or located within, the United States and its territories and possessions. Recipients are grouped into six main categories, as established by the GSA:

  • State governments - This category includes any of the 50 States of the United States and the District of Columbia (Washington, D.C.), or any agency or instrumentality of these governments, with the exception of institutions of higher education (colleges and universities) and hospitals.
  • Local governments - This category includes any county, parish, municipality, city, town, township, village, State-designated Indian tribal government, local public authority, school district, special district, intrastate district, council of governments, sponsor group representative organizations, and other regional or interstate government entity, or any agency or instrumentality of a local government, which are located within the U.S.
  • Territories and possessions - This category includes the Commonwealths of Puerto Rico and the Northern Mariana Islands, the Virgin Islands, Guam, Trust Territory of the Pacific Islands, and American Samoa.
  • Indian Tribal governments - This category includes the governing body or a governmental agency of any Indian tribe, band, nation, or other organized group or community (including any Native village) within the U.S. and its territories. These must first be certified by the U.S. Secretary of the Interior as eligible to receive assistance under special programs and services provided through the Bureau of Indian Affairs.
  • Non-profit organizations and institutions – This category includes semi-public, public and private institutions of higher education and hospitals, Native American Indian Organizations, and any other semi-public and private nonprofit organizations. However, Federally funded research and development centers are excluded from this category.
  • Private individuals – This category includes Native Americans, homeowners, students, farmers, artists, scientists, consumers, small businesses, refugees, aliens, veterans, senior citizens, low-income persons, health and education professionals, builders, contractors, developers, handicapped persons, and the physically afflicted. Examples of direct assistance to these individuals include Section 8 vouchers, Pell Grant scholarships, and disaster relief awards, among many others.

Every funding grants program is designed with a specific recipient in mind. Certain programs have restrictions on who may receive the assistance because of the nature of its activity or service. Examples include infrastructure programs and grants which are usually restricted to States, local governments, and U.S. territories given that these are usually the only entities that administer public roads, bridges, etc., or health-related research grants which individuals may be eligible so long as they satisfy certain criteria, such as that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States.

Pass-through entities and sub-recipients

The federal government allows certain entities mentioned above to act as a Pass-through entity in order to provide the federal assistance to another recipient. The Pass-through entity is still considered a recipient, but the assistance assigned to it may be “passed on” or “passed-through it” to another recipient. The entity which receives the assistance from a pass-through entity is considered a sub-recipient. This is allowed because certain federal programs (funding grants) may not have the organizational structure to provide assistance directly to the final recipient and requires support from other entities.

For example, crime-prevention federal programs may be assigned to a State Attorney General’s Office (AGO) (considered a State government). This State office may decide to assign part of its federal grant through sub-grants (also known as sub-awards) to cities and counties within the State (considered local governments) for crime-prevention activities such as neighborhood watch programs or supplying new equipment to police forces. The original recipient, the AGO, has become a Pass-through entity and the cities and counties have become “sub-recipients”, all the while the assistance is still serving the federal program’s purpose to prevent crime. Sub-recipients may in turn pass on the assistance to another sub-recipient to serve the purpose required by the federal program, for example if the cities mentioned above pass on part of their assistance to nonprofit organizations dedicated to patrolling neighborhoods at night. Therefore, a recipient may be considered a pass-through entity and a sub-recipient at the same time.

Certain programs of funding grants may require the original recipient to pass on the assistance to sub-recipients (i.e., the federal program requires that the assistance be provided to nonprofit neighborhood watch organizations, and the assistance passes recipient through recipient until it reaches them), while others may require that the recipient not pass on the assistance (i.e., State must use the assistance entirely on its own). Some programs award assistance to a pass-through entity who is neither the direct applicant nor the ultimate beneficiary, such as the Pell Grant program where students apply and receive the aid but it is the university’s responsibility to receive and administer the applications and disburse the aid.

Pass-through entities and sub-recipients are equally responsible for the management of federal aid received. The federal government monitors the federal aid provided to any recipient and requires all pass-through entities to monitor the aid they pass on. Noncompliance of a federal regulation on the part of the sub-recipient may also be attributed to the pass-through entity because it is still responsible for the funds it passed on.[citation needed]

 

Applying for Funding Grants Money

There are over 20,000 grant sources, and the place to start to find out about them is the Government Grants Site .

There is a huge amount of information to be found on the site and you can discover which Government Grants to apply for and make applications.
This process is grueling; the US web site is slow and complex, and it takes time.

It can be most disheartening after many hours into the process for little progress, and it is easy to give up.

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Claiming Funding Grants 

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  To find the Funding Grants you are eligible for, click Here!

 

 

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