Understanding Federal Grants
Federal grants are fundamentally different from contracts. While contracts are procurement instruments where the government buys goods or services, grants are financial assistance instruments where the government supports a project or activity that serves a public purpose. This distinction matters because it affects everything from how you apply to how you manage the award.
The federal government awards over $700 billion in grants annually across thousands of programs. Grants are available to a wide range of recipients including nonprofits, state and local governments, educational institutions, small businesses (particularly through SBIR/STTR programs), and individuals (for research and fellowships).
Grants come in several forms: project grants (for specific activities with defined deliverables), formula grants (distributed based on statutory formulas), block grants (broad funding to states for general purposes), and cooperative agreements (like grants but with substantial federal involvement in the project). Most competitive opportunities you'll find on Grants.gov are project grants.