A government grant constitutes a financial award bestowed by a federal, state, or local government authority to support a beneficial project, representing a form of transfer payment. Unlike technical assistance or other financial aid such as loans, loan guarantees, interest rate subsidies, direct appropriations, or revenue sharing, a grant is not anticipated to be repaid. The recipient, known as the grantee, is expected to utilize the funds for the stated purpose outlined in the grant, typically contributing to a larger societal good.
In certain instances, revenue-sharing arrangements with the government may arise, particularly when a discovery leads to the development of a profit-generating patent.
Annually, twenty-six federal agencies administer over 1,000 grant programs, offering financial support to initiatives in the arts, sciences, and educational institutions. Government grants play a vital role in funding ideas and projects that provide public services and stimulate economic growth.
