Virtually every US federal department has funds that they allocate to grant programs. With the exception of grant money available directly from the federal government, the majority comes from the State level. The important trick for those seeking government grants is to understand that this grant money typically flows from the federal government, to the state government, then to local governments. Finding the US federal government grant program is the first step. Understanding how and by what name that funding has been transferred to your State is the next step. Typically, understanding what federal government department is responsible for funding the respective state's department will help pinpoint the program at the State level. Understand how your State has allocated the federal dollars to cities, towns or regions is the next step.

How much does the Federal government spend on government grants?

The answer to this question is simple - billions. Generally speaking, the U.S. government allocates more and more money to grant programs every year. The examples below demonstrate this trend. Often, individuals find themselves seeking free grants, whether they be grants for college, grants for women, childcare grants, or housing grants. For this reason, the chart below includes numbers dedicated to grant programs directed at individuals.

The chart below includes a comparison of statistics offered in the Historical Tables included in the Budget of the United States Government for the Fiscal Year 2005. The first number refers to Total dollars spent, whereas the second refers to Total dollars spent on 'individuals'. The numbers quoted are in millions of dollars.

How many US grant programs are there?

It is very difficult to calculate an actual number, largely due to the enormous complexity of grant and funding programs, and how they are defined within the budget. Some illustrative examples are as follows. Documents included in the Budget of the United States for the fiscal year 2005 state that:

"The Department (of Heath and Human Services) manages over 230 programs and 60,000 grants, covering a wide spectrum of activities in public health, income support, basic and applied science, and child development."...... read more
(Budget of the United States Government, Fiscal Year 2005, Department of Health and Human Services)

"The Community Development Block Grant (CDBG) program provides annual grants totaling $4.3 billion each year to over 1,000 eligible cities, counties, and States to help develop viable urban communities in our Nation’s distressed areas. The primary strength of the program is the flexibility each community has to spend funds on the areas of greatest local need such as housing, economic development, and public facilities."......read more
(Budget of the United States Government, Fiscal Year 2005, Department of Housing and Urban Development)

As these two examples illustrate, various federal government departments hand out hundreds and even thousands of grants, worth billions of dollars, to State and local governments. Finding the grant program at the State or local level is the key to finding your US grant.