Federal Aid Grant

Issuing authority
Federal aid is generally issued by the United States Government, but it can also be issued by private non-profit organizations. Federal aid is regulated and defined by the Federal Grant and Cooperative Agreement Act of 1977, Title 31 Section 6304 of the U.S. Code.

Federal aid is primarily given to subsidize programs and projects that fall under the funding criteria of the donor organization.

Federal aid can take one of two forms: Restricted aid or unrestricted aid. When federal aid is given to serve a specific purpose of the benefactor, then it is called restricted aid. When aid is used by the benefactor within its periphery, then it is termed as unrestricted aid.

Types of grants
Some of the common types of grants include formula grants, categorical grants, block grants, and earmark grants. Approximately ninety percent of federal aid dollars are expended for categorical grants and thirty three percent of the categorical grants are formula grants.
Categories of grant programs
Some of the grant program categories put considered by Federal grant-making agencies are arts, agriculture, consumer protection, employment, labor and training, education regional development, environmental quality, energy, science and technology, housing, health, food and nutrition, humanities, transportation, social service, information and statistics, natural resource, disaster prevention, business, and commerce.


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