Grant

A government grant is a financial award given by a federal, state, or local government authority for a beneficial project. It is effectively a transfer payment.

A grant does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money but is expected to use the funds from the grant for their stated purpose, which typically serves some larger good.