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The Key Difference Between Federal and State Grants

State vs. Federal Grants

Grants can be awarded for a variety of reasons, and the federal and state governments are the main sources for funding. When you can correctly recognize the difference between federal and state grants, you can apply for the best assistance for your financial situation.
Federal Grants

The United States government issues federal grants out of their own revenue. These grants provide partial or complete funding to individuals or institutions.

Federal grants are divided into two general categories: direct and pass-through. Direct grants ensure the recipients receive their funding directly from the government, while pass-through grants are given to the state first and eligible charities, community groups, and other types of applicants second. In addition to this division, federal grants are further separated into block grants, categorical grants, earmark grants, formula grants, and project grants.

There are federal grants for college funding (such as the Federal Pell Grant), small business projects, state programs (such as outdoor conservation), and more. There are hundreds of federal grant programs out there—and you can apply for federal grants anywhere in the U.S.

State Grants

State grants come directly from your state government’s revenue. Typically, more money is available from state governments than the federal government. Keep in mind that each state manages its funding differently.

There are state grants available to cover educational expenses, city projects, and more. You must apply for grants that are only applicable to your home state.

Essentially, the key difference between federal and state grants is the source (or which governmental entity your funding comes from). Both types of grants benefit the public; they’re meant for individuals and organizations in financial need. Generally, you don’t need to repay government grants, which is why they’re ideal for people and businesses.

Obtain the money you need to support yourself or your organization—apply for either a federal or state grant today.

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