Federal Grants

Funds issued by the United States federal government are called Federal Grants. The money sanctioned to an individual or an organization is meant for the purpose of starting businesses, education, research or any other project with an aim to bring social development. Apart from entrepreneurs, grants are also given to nonprofit organizations, charitable institutions or other foundations. The fund money is not required to be returned by the recipient.
There are various types of Federal Grants:
Project grants: These grants are given to persons engaged in research work. From agriculture, health care, academics, communication, transportation, environment, and banking to science and technology, projects grants are issued to promising individuals with the proper qualifications.
Block Grants: These funds are available to the local governments for implementation in general state development purposes. These are given directly from the federal government to the state governments.
Legal Grants: These are also called formula grants and are only available under legal rulings.
Earmarked Grants: These are highly controversial grants and are not given casually. These are not sanctioned to general grant seekers.
Federal Grants are awarded to those individuals or organizations that are working towards social progress. No one gets these just by filling up grant applications. Federal grant applications go through a strict screening procedure and the bulk of applicants are rejected. The process is complicated and takes a long time. Since free grants are available every year, the competition is also tough. It is only after a careful scrutiny and documental evidence, is a grant released. There are economic sanctions for labor training, consumer protection and awareness, housing and social securities.
Federal Grants often come under fire due to their often exploitative nature. The government agencies show a clear bias towards vote banks and this affects impartial decision making. Small businesses suffer due to excessive dilly-dallying and controversial decisions. Besides, these grants come in exceptionally long durations, and these delays hurt business.
However, Federal Grants are meant for the national and social betterment and these allowances help tide over obstacles. With no financial glitches, projects run smoothly and research is completed in time. Businesses grow and there is overall improvement.