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7 Types of Federal Grants that you Need to know.

admin by admin
June 21, 2022
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7 Types of Federal Grants that you Need to know.
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You may find many federal grant options if you know where to search and what to do. The larger picture includes finding the proper funds, preparing the flawless grant application, and nailing post-award administration.

We understand the need to tailor your grant management software to the peculiarities of your sector as a leading provider of grant management solutions. We also know that understanding the method you need to take during the application process to cater to each grant funding kind is crucial.


Understanding the similarities and variations between the four primary categories of Federal grant financing can assist you in getting the best outcomes. As you look for grant funding sources, this article will help you comprehend the various Federal financing systems.

Competitive Grant – Based on Merit

Federal & State Grants - Blue Ridge Community College

This type of grant, sometimes known as “discretionary” funding, is awarded through a competitive process that includes proposal selection by a single or group of reviewers. This type of financing is determined based on the merits of the application and is not guaranteed.

Competitive awards include money for scholarships in the arts and humanities, different student tuition programs, and scientific research. 

It’s critical to grasp the grants requirements to make your application as competitive as feasible. You may be able to speak with the group that was awarded the funds to get any queries answered.

2. Formula Grant – Awarded based on a predetermined formula

Formula grants, unlike competitive grants, are given to pre-determined recipients, with the term “formula” referring to the technique of awarding grant cash to recipients. Formula grants, on the other hand, are not available to the public. 

Legislation and regulations set the financing criteria, and donors must adhere to them when awarding funds. Typically, cash from formula grants is dispersed and redistributed between states. The subsidies are available to all qualified candidates. 

Federal subsidies to state and local governments for programs like Medicaid, education, and transportation infrastructure are examples of formula grants.

What exactly is included in the formula?

In a nutshell, each program is distinct. This necessitates a thorough examination of the websites of various government agencies and the laws that authorize them.

Persistence – Renewal Grants

Deep tech startups in need of funding should consider federal grants |  TechCrunch

As the name indicates, Continuation grants provide current award recipients with the option of extending or renewing their program financing. According to Awards.gov, this can apply to one or more budget period(s) to prolong grants that would otherwise expire. Depending on the grant program, some may only accept applications from current grantees, while others may accept applications from both new and current grantees.

Because continuing applicants are sometimes given priority for continuation funding awards, it’s worth remembering that if you’re a new candidate, developing a partnership with a currently sponsored organization may be beneficial.

Pass-Through Grants — These are grants issued by a federal agency.

Four to Go: Application Cycles Continue for $110M in Federal Grants for  Reducing Ga. Case Backlog | Daily Report

Federal agencies award pass-through funds to a state agency or institution. The money is then transferred to other State agencies, local government entities, or other qualifying organizations following the grant’s stipulations.

States can distribute these monies competitively or non-competitively under this financing arrangement, depending on the conditions and enabling legislation of the top award. This provides freedom and autonomy to state governments in utilizing federal grant funding.

However, potential candidates should remember that they must seek and apply for pass-through funds through their state’s grants agency.


The initial authorizing agency or institution, the “primary receiver,” sets the conditions and audit requirements, while the subsequent beneficiaries are “sub-recipients.” Depending on the conditions and authorizing legislation, the primary recipient subsequently issued the sub-awards as competitive or non-competitive awards.

Grant Applications that are Competitive

How to write a grant proposal

Foundation or government funding applications are competitive.

Typically, the foundation backer will announce the award online, or a government agency would release a Notice of Funds Availability (NOFA) or a Funding Opportunity Announcement (FOA). These notices are important because they specify the particular conditions that must be addressed in the grant application.

Because there is some discretion in determining which applications should be given the grant, federal healthcare funders like the National Institutes of Health (NIH) sometimes refer to these possibilities as “discretionary grants.”

On the other hand, federal agencies are far more cautious with their standards than other donors. They are also more detailed about the priority (also known as points) they assign to each grant application selection and how they rate the applications.

6. Applications for Formula (Non-competitive) Grants

When legislation enables a unique or particular grant program, formula grants are frequently used, also known as non-competitive grants.

As previously indicated, formula monies must be allocated to each and every qualifying organization or individual. Formula grant funds are often awarded to states according to a specified formula. Then, on a local level, judgments are made on which activities to finance and how much to give.

Funding for these sorts of awards has dropped in recent years. However, as previously indicated, qualifying candidates who satisfy the predetermined formula or standard criteria will be funded.

7. Grant Applications for Continuation

How to Break Into the Lucrative World of Grant Writing

Continuation grant applications are frequently sought in multi-year projects where money is available for subsequent budget months. Funders use three criteria to evaluate submissions for this form of funding:

Available funding

Performance within the first year of the grant Continued funding is in the best interests of the federal government.

Meeting the set goals during the first year of the grant and adhering to all reporting duties and other criteria is the easiest way to measure your continued funding performance with a continuation grant. Let’s imagine your program isn’t fulfilling the objectives you agreed to with the funds. If you don’t produce frequent progress updates or meet the funder’s standards, you risk losing the multi-year financing project.

Conclusion

Knowing the four different types of grants might help you decide which Federal funding source is appropriate for you. It will also help you ensure that your application is in the finest possible shape so that you have the best chance of winning funding.

Tags: Federal Grant
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