What Does the Government Give Grants For?

What does the government give grants for? It is important to fund programs or ideas you make to support social services and strengthen the economy. The grants stand for important recovery initiatives, innovative studies, and other programs based on the list of Catalog of Federal Domestic Assistance or CFDA.

You can also say that a grant is one of the various forms of government financial aid. It is a broad way to say the different ways the U.S. federal spends resources on eligible recipients. On Grants.gov, you can get a grant and cooperative agreement chances from the government agencies that get grants.

When you get a government grant, it means you will get a sum of money for an individual, business, or organization to fund a specific activity or specific project. The grants are very competitive, in which you must submit a proposal first to outline the goals and objectives for your activity and project.

The government grant is a great source to fund your business. Besides, the government provides grants for the capital necessary to expand or even start operations. The government grants, help businesses to get new markets or even to develop new services and products.


The Grant Process

The grant process includes funding opportunities, applying for grants, award decisions, and implementing the award successfully. You can access the Grant Lifecycle page to get information about the applicant and the available agency to support grants.

There are three main steps related to the government grant. Each of the three steps has its specific information as below:

  1. Pre-award phrase – The steps to find funding opportunities and application
  2. Award phase – The steps of waiting for the award decisions and getting the notification
  3. Post award – The steps of implementing, reporting, and closing out

Additionally, the application phases for government grants depending on the kind of grants and the agency administers the activities. In general, you need to submit a proposal to tell the goals and objectives of your activity or project.

What Does the Government Give Grants For?

If you want to know more about what the government gives grants for, you can get the answer based on the type of grants you choose. Here are the types of grants together with the benefits you will get:

1. SSI For Disabled People

This is a federal program, which stands for Supplemental Security Income. It works to support disabled seniors and kids with low income and limited resources. This program is under the Social Security Administration, but the fund beneficiaries get is not funded with the Social Security taxes.

Based on the SSA, the maximum money per month for the eligible individual in 2022 is $841. If you are an eligible person with an eligible spouse, you can get about $1,261. An essential individual – someone who is living in the home and you are taking care of the eligible individual can get $421.

2. Unclaimed.org

In this program, the government is supporting you for free so you can get your money back. The organization behind this program is the National Association of Unclaimed Property Administrators or known as NAUPA. It is a network of the National Association of State Treasures.

If you have unclaimed or lost money – Assume hundreds of thousands of dollars because you have unclaimed life insurance benefits, or maybe you have $122.00 in your ignored checking account – you may find the unclaimed money here.

Well, it sounds too good to be true. But, this is a possible way to put that money back in your account.

3. Pell Grant – Government Grants for Students

What does the government give grants for from Pell Grant? It is a beneficial program if you want to have a child and be ready to go to college by completing the FAFSA (Free Application for Federal Student Aid) from Fafsa.gov.

At first, it can be a little challenging but there is a financial aid virtual assistance to help you. There is Federal Student Aid Information Center with live people to answer all your questions. If your child is eligible for this grant, your child will get more than $6,495 for the 2022-2023 school year. Luckily, you do not have to pay back the money since it is not a loan or debt.

4. Down Payment Assistance

If you have a financial issue related to homeownership, you can find this program that provides a grant for free money or a down payment, a forgivable loan, or a loan with low interest. Also, some programs provide help with closing costs.

You can check with your city’s government office to get information about programs with down-payment assistance. The U.S. Department of Housing and Urban Development also offers a lot of information on local government if you are a first-time home buyer and down-payment assistance projects.


CCDF or The Child Care and Development Fund is available for low-income families who need help paying for childcare because of work, school, or training for career experience.

If you want to know about the amount of income you are eligible for this program, you can open Benefit.gov. Based on the National Association of Counties in 2018, the last year’s data is available and it is only about 14% of the eligible kids took this opportunity.

6. The Lifeline Program

This useful program offers a discount on internet service or phone bills if you can prove yourself as one of the eligible people. This program is only for the low-income consumer and it is available in each state, territory, and commonwealth and on the tribal land. Additionally, you can use this lifeline program as grants for covering mobile or home phone service or fast broadband.

To be eligible, you as the consumers must have proof of a gross household income under 135% of the government poverty standard or join SNAP, Medicaid, or other government programs.


What does the government give grants for the eligible person from the LIHEAP program? If you are finding difficulties paying for heating or cooling bills, this is a useful program to help. It is useful if you are a homeowner or a renter.

The authority to handle the Low Income Home Energy Assistance Program is the Department of Health and Human Services. Even though each state can put a consideration whether or not you are an eligible household for this cash grant.

But, if you have already participated in a program just like SNAP, you have an opportunity to be automatically eligible, based on Benefits.gov. Plus, the grant is based on the income, the number of people living in the home, and the kind of fuel for heating or cooling the home. Generally, the grant range is from $500 to $1,500 and is paid automatically to the utility bills.

8. ERA

ERA or The U.S. Department of the Treasure’s Emergency Rental Assistance works for those who are unable to pay rent or utilities and you feel like they are in danger of eviction.

This program is available since the beginning of the pandemic but it is still running in some states, excluding Florida.

You can get help with rent for a few months, instead of getting enough money only for paying rent for a month. If you want to get information about emergency rental assistance programs in your area, you can open the official website of the Consumer Financial Protection Bureau or visit the website of the U.S. Treasury.


The Supplemental Nutrition Assistance Program is available for low-income households. If you meet the eligibility for SNAP benefits or known as food stamps, your state will give you a benefits transfer card just like a debit card, known as an EBT card. You can use this card to buy food for your household needs at authorized stores.

To meet the criteria for SNAP, your household has to meet the net and gross income limits for your household’s size. Based on the USDA, the average benefit of SNAP per household in the previous year was $210.07 per month.

10. TANF

Temporary Assistance for Needy Families is also available as a major public aid program. The fund is from the federal and the states run this program.

What the government grants is for many people and children as cash assistance and it is welfare. The money you received depends on the policy of your state.

For example, if you are living in Oklahoma, based on Benefits.gov, the highest amount an adult and two kids can get through the TANF assistance program is $292 monthly. Meanwhile, for a family of three living in Washington state with no other income, then they will get $654 per month.

You can apply for TANF through the administering agency in your state, and if you want to be eligible, you must have a low income and be struggling with financial needs.

Why does the Government Give Grants?

The biggest reason about what does the government give grants is to fund organizations or individuals. For organizations, it works as a donation since they are doing a positive impact on society.

Government grants are also available for many organizations in any industry, such as healthcare, commerce, education, or even other sectors. For instance, the United States Department of Agriculture gives grants to business that has sustainable and clean energy mechanisms. Eventually, you can access some information about grants at SBIR.gov, grants.gov, or other official government sites.


The government gives grants for is to fund nonprofits, students, or even artists who are having a program or an activity for a good cause. But, not all of those people can get the grants because the requirements to meet the criteria is very specific and the competition is very high.

Organizations or individuals who want to apply for the available grants must submit a proposal that tells about the objectives or the goals of their activity or project. The application process for government grants depends on the kind of grants and the agency running the program. The eligible organizations or individuals will get the fund for their business, and it is a great source to start and expand their operations.


  • Finding Grant Programs – https://www.grants.gov/web/grants/learn-grants/grant-programs.html
  • Grants 101 – https://www.grants.gov/learn-grants/grants-101.html
  • 10 Ways to Get Free Money From the Government – https://money.usnews.com/money/personal-finance/family-finance/slideshows/how-to-get-free-money-from-the-government
  • The Many Benefits of Getting a Government Grant for Your Business – https://fastercapital.com/content/The-Many-Benefits-of-Getting-a-Government-Grant-for-Your-Business.html