A federal grant is financial assistance awarded by an agency of the U.S. federal government to a non-federal recipient for a public purpose authorized by law. Federal grants are the largest single source of grant funding in the United States — collectively over $1.2 trillion in federal financial assistance flows each year, the bulk of it via formula-funded programs to state and local governments.
This page explains how federal grant funding actually works, who can apply, and how to use the public system to find and apply for opportunities.
Who issues federal grants
Twenty-six federal agencies make grants, with the bulk concentrated in a handful. The biggest grant-making agencies by dollar volume include:
- U.S. Department of Health and Human Services (HHS) — Medicaid, NIH research, HRSA, CDC, SAMHSA. The single largest federal grant-maker.
- U.S. Department of Education — Title I, IDEA, Pell Grants, FSEOG, TEACH, Higher Education Act programs.
- U.S. Department of Transportation — formula and discretionary transportation grants.
- U.S. Department of Agriculture (USDA) — SNAP, rural development, NIFA research, conservation programs.
- U.S. Department of Housing and Urban Development (HUD) — CDBG, HOME, Section 8 funding to PHAs.
- U.S. Department of Labor — WIOA workforce funding.
- U.S. Department of Energy — research and weatherization.
- U.S. Department of Defense — research and certain civilian programs.
- National Science Foundation (NSF) — scientific research.
- Environmental Protection Agency (EPA) — environmental and water-infrastructure grants.
- Small Business Administration (SBA) — through pass-through partners and SBIR/STTR.
- National Endowment for the Arts (NEA) and Humanities (NEH) — arts and humanities.
A full list of agencies and current opportunities is at grants.gov.
Types of federal grants
Formula grants (block grants)
Statutorily allocated to states or other defined recipients by formula. The state then administers the funds under federal rules. Examples: Medicaid, Title I Part A, CDBG, TANF, LIHEAP, IDEA.
Categorical / project grants
Competitively awarded for specific projects. Examples: NIH R01 research grants, EIR Education Innovation, NEH Public Programs.
Cooperative agreements
Similar to project grants but the federal agency is substantively involved in the work.
Continuation / non-competing renewals
Multi-year awards that renew based on progress reports, without re-competing.
Discretionary vs mandatory
- Mandatory programs are funded by statutory entitlement (e.g., Medicaid, SNAP).
- Discretionary programs depend on annual congressional appropriations.
Who is eligible
Eligibility varies by program. Common eligible entity types include:
- State, local, and tribal governments
501(c)(3)non-profit organizations- Public and private institutions of higher education
- For-profit small businesses (specific programs like SBIR/STTR)
- Special-purpose entities (school districts, public housing agencies, hospitals)
- Individuals — for a narrow set of programs only (Pell, FSEOG, TEACH, VA SAH, FEMA Individual Assistance, certain NEH/NEA fellowships, USDA Section 504 grants)
Every program's Notice of Funding Opportunity (NOFO) defines eligibility in detail. Read it carefully before investing time.
What federal grants pay for (and don't pay for)
Allowable costs are governed by the Uniform Guidance at 2 CFR Part 200. Costs must be:
- Allowable under the cost principles
- Allocable to the federal award
- Reasonable in amount
- Consistent with the recipient's policies
Federal grants generally do not pay for:
- Personal debts or consumer expenses
- Political activity or lobbying
- Entertainment costs
- General fundraising costs
- Costs that pre-date the award period (unless explicitly authorized)
How to find federal grants
- Grants.gov — the central federal grant opportunity database. Search by keyword, agency, category, eligibility, or Assistance Listing number.
- Agency websites — every major federal agency publishes funding forecasts. Examples: HHS Grants Forecast, ED Funding Opportunities, NIH RePORTER.
- USAspending.gov — see who currently receives federal awards in your field and geography. Useful for benchmarking and identifying potential collaborators.
How to apply
- Confirm eligibility against the NOFO.
- Register your organization on sam.gov (free; 7–10 business days). You will receive a Unique Entity ID (UEI) — the DUNS number was retired April 4, 2022.
- Register on grants.gov and link your UEI.
- Prepare your application in Grants.gov Workspace.
- Submit at least 48 hours before the deadline.
See our how to apply for government grants page for the full workflow and our grant writing guide for proposal structure.
There is no application fee for any federal grant. Anyone charging you to apply, expedite, or release federal funds is running a scam — report to reportfraud.ftc.gov.
Federal grants for individuals (the short list)
The federal programs that award grant funds directly to individuals (rather than to organizations that serve individuals) are limited but real:
- Pell Grant — undergraduate need-based, up to $7,580 for 2026–27.
- FSEOG — supplemental need-based, campus-administered.
- TEACH Grant — up to $4,000/year for prospective teachers with a service commitment.
- Iraq and Afghanistan Service Grant — for students whose qualifying parent or guardian died in service.
- VA Specially Adapted Housing (SAH) Grant — up to roughly $117,000 in 2026 for qualifying veterans.
- USDA Section 504 Home Repair Grant — up to $10,000 lifetime for very-low-income elderly rural homeowners.
- FEMA Individual Assistance — after a federally declared disaster.
- NEH/NEA fellowships — competitive individual research and arts fellowships.
For other "personal" federal help, see our Personal Grants page.
How long the process takes
| Stage | Typical timing |
|---|---|
| SAM.gov registration | 7–10 business days |
| NOFO open period | 30–90 days |
| Drafting time | Days to months depending on complexity |
| Review period | 60–180 days after deadline |
| Award processing | 30–60 days from selection to funds available |
| End-to-end | 4–9 months is typical |
Common questions
Do federal grants need to be repaid? No, provided the recipient complies with the grant agreement. Misuse of federal grant funds is a serious offense and can require repayment plus penalties.
Are federal grants taxable? Grants to for-profit businesses are generally taxable income. Grants for qualified educational expenses are generally not taxable to the student. Grants to non-profits are generally not taxable to the organization. Consult a tax professional and the IRS for specifics.
Do I need a non-profit to apply? For most non-research federal grants, yes — you'll need to be an eligible organization (non-profit, government entity, school, tribe, hospital, or for specific programs a small business). Some individuals can apply for the programs listed above.
Can a foreign organization receive U.S. federal grants? Sometimes — specific programs at NIH, NSF, USAID, and State Department do fund foreign recipients. Most federal grants require U.S. recipients.
Are there state grants too? Yes — many federal dollars are pass-through funds to states, and states also fund their own programs. See our State Grants page.