The US Government grants usually subjected to a particular project that endorse positive externalities. This project must have positive effect to society more than private benefits. Grants may come from the state government or federal government.
The Federal grants are usually given to a certain companies and firms instead of the individuals. There are three types of federal grants and they are the Project grants, the Earmark grants and the Formula Grants.
The Project grants are for those companies that do the research programs. A pharmaceutical company that does the researches for an effective drug that can be used to fight a certain disease is a good example of company that qualifies to the project grants. The Earmark grants can be given through legislators. These grants was being added to the bill that the legislators passed which helps the project to get funding which does not require public reviews. This type of grant could easily be abuse by the legislators. The Formula grants were given for funding a certain program as being authorized by the existing law. These funds were the money that the government could use for protecting the forest and other programs that demoting the substance abuse.
The grants issued for individuals that came from a specific state are called State grants. In these grants, promoting the higher education is their priority. It includes the education grant and the college grant.
Education Grants were given to both individuals and institutions. Institutions may utilize the money for improving their facilities while the individuals who are in great needs, part of minority community, or those physically handicapped such as blind and deaf may use that grant to finish their education. College grants are given to those higher achievers that need financial assistance for their college. Government may either pay the portion of their college fees or undertake all of their expenses, which depend to each individual case.