US FEDERAL GOVERNMENT GRANTS
Billions of dollars in Federal grants are awarded each year for programs and projects that benefit the public. This assistance is rooted in the Constitution and its call to "promote the general Welfare."
It wasn't until the 1970's, however, that Federal grant policy began to evolve into what it is today. In the 70's, Congressional lawmakers responded to reports that Federal agencies were using assistance awards, or grants, to pay for services. In doing so, they could side-step competition and procurement rules normally associated with government contracting.
The Federal Grant and Cooperative Agreement Act, passed in 1977, set out to guide government agencies in their use of Federal funds – particularly by defining the roles of contracts, cooperative agreements, and grants. Contracts, the law states, should be awarded when a Federal agency is acquiring something – an improved computer network, for example. Grants and cooperative agreements, meanwhile, should be awarded when a Federal agency is providing assistance, such as funding for a lower-income housing program in an at-risk urban community.
To help with the implementation of the law, the Office of Management and Budget (OMB) published guidance in 1978 directing agencies to ensure that grants funds be used only for assistance-based programs and projects.
Policy Formation
Since the 1970's, subsequent grant-related legislation has helped to further develop Federal grant policy. It works much like it did in 1977 and 1978: Congress creates the grant-related laws and regulations.
The Executive Office of the President – of which OMB is part – helps to implement the laws through Executive Orders and Guidance that define administrative rules.
Finally, the grant-making agencies create internal and external policies and procedures based on the OMB guidance. These agency-specific policies for award recipients do not carry the weight of law, though they may be required of award recipients if they are listed in the Notice of Award.
Who is Eligible for a grant?
Determining whether you are eligible to apply for and receive a federal grant is very important. If you are not legally eligible for a specific funding opportunity, you would waste a lot of time and money completing the application process when you cannot actually receive the grant.
When considering eligibility, the first step is to know what type of organization you represent (or whether you are applying as an individual). If you already know whether you will apply on behalf of your organization or as an individual, then you are ready to check your eligibility.
There are many types of organizations generally eligible to apply for funding opportunities on Grants.gov. Each type of organization listed in the categories below is a specific search criterion in Search Grants. Individual applicants are welcome too!
Government Organizations
State governments
County governments
City or township governments
Special district governments
Native American tribal governments (federally recognized)
Native American tribal governments (other than federally recognized)
Education Organizations
Independent school districts
Public and state-controlled institutions of higher education
Private institutions of higher education
Public Housing Organizations
Public housing authorities
Indian housing authorities
Nonprofit Organizations
Nonprofits having a 501(c)(3) status with the Internal Revenue Service (IRS), other than institutions of higher education
Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education
For-Profit Organizations
Organizations other than small businesses
Small Businesses
Small business grants may be awarded to companies meeting the size standards established by the U.S. Small Business Administration (SBA) for most industries in the economy.
Individuals
Individual people may submit applications for a funding opportunity on their own behalf (i.e., not on behalf of a company, organization, institution, or government). If you are registered with only an individual applicant profile, you are only allowed to apply to funding opportunities that are open to individuals.
Most of the funding opportunities on Grants.gov are for organizations, not individuals. If you are looking for personal financial assistance or other types of funding, check out the Grant Programs section to learn about how to find other forms of funding from the government.
Foreign Applicants
The authorizing legislation and agency policies will determine whether a foreign individual or organization may apply for the grant. Foreign applicants need to complete the same registration process as domestic applicants, but there are additional steps to this registration process.
Depending on the intended usage of the grant you are applying for, you may need to file a U.S. tax return which requires a Taxpayer Identification Number (TIN), also referred to as an employer Identification Number (EIN). If a non-resident alien is awarded funding to perform activities outside the United States, then this likely does not constitute U.S. source income and a TIN/EIN is not necessary. Examples of such funding include scholarships, fellowship grants, targeted grants, and achievement awards.
Before applying, foreign applicants should thoroughly review the IRS website and search for their most recent guidance for Aliens and International Taxpayers.
SBIR GRANT
What is the SBIR Program? The Small Business Innovation Research (SBIR) Program is a highly competitive three-phase award system that provides qualified small business concerns with opportunities to propose innovative ideas that meet the specific research and research and development needs of the Federal Government.
The four goals of the SBIR program are to:
Stimulate technological innovation
Use small businesses to meet Federal R/R&D needs
Foster and encourage participation by the socially and economically disadvantaged small businesses and those that are 51 percent owned and controlled by women, in technological innovation
Increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth
STTR GRANT
Small Business Technology Transfer (STTR) grants are federal research grants set aside for small businesses. STTR grants are awarded to a company working with a nonprofit research partner, typically a university.
The major difference between the SBIR and STTR is that the STTR requires the small business to partner/collaborate with a U.S. non-profit research institution, while the SBIR allows you to partner/collaborate.