Grants in the US government usually issued to a certain projects that promote positive externalities, which means the project should have greater positive effect to the society rather than the private benefit. A certain grant may be given by the state government or by federal government.
The Federal grants are usually given to a certain companies and firms instead of the individuals. There are three types of federal grants and they are the Project grants, the Earmark grants and the Formula Grants.
Formula grants are those grants that usually provide funds as mandated by the existing law. This type of grant might be a sum of money that US government needs to spend to protect the forests or provide services to demote substance abuse. Earmark grants are issued through legislators and being added to a certain bill that was being passed that also helps particular projects to acquire funding without any public reviews. In the Earmark Grants, there could be large possibilities of abusing it by the legislators. Project grants are issued to companies or person for the purpose of researching. A good example for this would be one pharmaceutical company that tried to develops a certain drug to fight a particular disease.
State grants usually issued to individuals given by a certain states. It includes the grants that promote higher education for people such as the education and college grants.
Education Grants were given to both individuals and institutions. Institutions may utilize the money for improving their facilities while the individuals who are in great needs, part of minority community, or those physically handicapped such as blind and deaf may use that grant to finish their education. College grants are given to those higher achievers that need financial assistance for their college. Government may either pay the portion of their college fees or undertake all of their expenses, which depend to each individual case.
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