It's true: The federal government hands out a great deal of
money each year. It is awarded primarily through various
types of grants. It is also true that a large percentage
of this money that is appropriated for federal grants goes
unawarded, because most people simply aren't aware of the
grant programs, or believe that only large corporations and
scientists doing research projects are eligible for the
programs.
So how can the average person gain access to government
grant money? First, be aware that receiving a federal
grant award requires some work on your part. You must be
able to complete a specific project of government interest
or perform some given task. In this way, federal grants
differ from entitlements and government benefits, where if
you have a need for the money and meet certain other
criteria you are eligible to receive an award.
One type of government grant is known as a project grant,
and as the name suggests, it requires the grantee to
complete some specific action or project. There are a
variety of project grants that are available for people or
organizations with the resources to complete the project.
If you accept a project grant award, you are obligated to
complete the project, and could face stiff legal penalties
for defaulting on the agreement.
There are some instances where the government provides
grant money with no strings attached. This type of grant
is known as "direct payments with unrestricted use." If
you are eligible you can receive the money and use it as
you choose. Just a few examples of this type of grant are:
unemployment insurance, grants for farmers and fishermen,
and railroad workers' compensation. There are hundreds of
these grants that are available to qualified parties, and
while the amounts of the awards vary, the money is granted
without obligation to repay it or complete any task.
Not all government grants are dispersed as a sum of cash;
many of them take the form of specific benefits or
assistance programs. For instance, the government may
provide low interest loans to people who would otherwise
not be able to obtain financing with a traditional lender.
FHA and VA mortgage programs, and federal student loan
programs fall into this category of government benefits.
The government guarantees lenders that they will be repaid,
and insures them against default.
While there are many federal grant programs, they are by no
means the only source of grant money. Thousands of private
foundations award money for a variety of reasons, and these
foundations are required to distribute at least five
percent of their assets each year in order to retain their
tax exempt status. Private foundation money is awarded to
people pursuing a college degree, learning a trade, or even
starting a business. States also disperse grant money to
its residents who are seeking employment, education, and
housing.
While tv infomercials may portray grant money as an instant
way to become wealthy, the truth is that not everyone can
obtain grant money, and those who do receive an award are
not going to become rich overnight. They are however,
correct in their assertion that millions of dollars of
government grant money go unawarded each year, and that you
may be eligible for some of the money for one reason or
another. You really have nothing to lose in doing some
research and finding out just how much.
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Gregg Pennington writes articles on a number of topics
including government grants and student loan consolidation.
For information about finding grant money visit
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