Grant programs give out money you usually don’t have to pay back. Federal, state, and local governments and nonprofit groups run them for set purposes, such as school, disaster recovery, research, or community projects.
Each grant can only pay for its set purpose, and most grants go to organizations rather than to individuals. Below are the types of grant programs, the few that individuals can get, and the signs of a fake one.
What is a grant?
A grant is funding given for an approved purpose. Compared with a loan:
- You usually don’t repay it, as long as you follow the program’s rules
- You can only spend the money on its approved purpose
- You may need to show receipts or report how you spent the money
- Programs have limited money, so applicants compete for many grants
Grants can go to students, homeowners, businesses, nonprofits, schools, researchers, and state and local governments. According to Grants.gov, most federal funding opportunities are for organizations, few are open to individuals, and none provide personal financial assistance. Individuals who do get grant money usually get it through a program with a set purpose, like student aid or disaster help.
Common types of grant programs
Education grants
Education grants are the grants individuals are most likely to receive. The best known is the Federal Pell Grant, which goes to undergraduate students with financial need. You apply for it, along with most other federal and state student aid, by filling out the FAFSA.
Other education grants may cover:
- Career and technical training
- Teacher preparation
- Adult education and job retraining
- Graduate study in certain fields
Eligibility usually depends on financial need, enrollment, and keeping up with your classes. In many cases the money goes straight to your school.
Housing and home repair grants
State and local agencies run most housing grants, many with federal funding. These grants tend to pay for specific projects rather than monthly costs, such as:
- Safety repairs for low-income homeowners
- Accessibility changes, such as ramps or grab bars, for older adults and people with disabilities
- Repairs in rural areas
- Affordable housing projects run by local organizations
Rent help usually comes through rental assistance programs or housing vouchers rather than grants. Your state social services agency or 211 can point you to what is available near you.
Disaster relief grants
After a federally declared disaster, the Federal Emergency Management Agency (FEMA) may offer grants to help people in the affected area with temporary housing, basic home repairs, and other essential needs that insurance does not cover.
Disaster grants are:
- Available only for declared disasters
- Limited to the affected counties
- Meant for recovery, not to replace ongoing income
Eligibility depends on things like damage inspections, where you live, and your insurance coverage.
Small business grants
Small business grants are much rarer than most ads suggest. The SBA says it does not provide grants for starting or expanding a business. The grants that do exist usually come with specific goals, such as:
- Research and development
- Creating jobs in a certain area
- Supporting a certain industry
- Helping underserved communities
State and local economic development offices, universities, and nonprofits run many of these programs. For most people starting a business, loans and local small business programs are more realistic options.
Research grants
Research grants pay for scientific, medical, and technical work. They mostly go to universities and research organizations, though individuals may take part through a program at one of those institutions.
Major federal research funders include:
- The National Institutes of Health (NIH)
- The National Science Foundation (NSF)
These grants require formal proposals and go through a competitive review. They are not a source of personal financial help.
Health and public health grants
Health grants usually go to clinics, hospitals, and community organizations rather than to patients. You benefit through lower-cost care and services in your area, such as:
- Community health centers
- Mental health services
- Substance use treatment programs
- Prevention and public health programs
Who can get a grant?
Each program sets its own rules. Some look at income, and others look at your school, location, business, or situation. You may be a good fit for certain programs if you:
- Have a low or limited income
- Are enrolled in an eligible school or training program
- Own a small business in a targeted industry or area
- Live in a rural area or an area hit by a declared disaster
- Are part of a group a program serves, such as veterans or older adults
Legitimate government programs never charge you a fee to apply or to receive the money.
How grant money is paid
Grant money usually reaches you in one of these ways:
- Paid directly to a school, landlord, contractor, or service provider
- Reimbursed after you pay an approved expense
- Released in stages as a project reaches set milestones
- Applied as a credit toward a qualifying cost
Few programs give individuals cash to spend as they like.
How to find legitimate grant programs
Use sources you can trust:
- Grants.gov for federal funding opportunities
- USA.gov Benefit Finder for federal benefits that individuals can apply for
- Your state government agency websites
- The financial aid office at your school
- Established local nonprofits, which you can find through 211
The Federal Trade Commission warns that offers of free money from government grants are scams. Be careful with anyone who:
- Guarantees approval
- Advertises “free government money” with no requirements
- Charges a fee up front or asks for your bank account details
What to expect when you apply
Most grant applications ask you to prove who you are and that you qualify. Common requirements include:
- Proof of income or financial need
- Identification
- School enrollment or business documents
- A description of what the money is for, or a formal proposal
Some programs award the grant once they confirm you qualify, and others run a competitive review that can take weeks or months. For a step-by-step checklist, see How to Apply for Grants.
Before you apply
Start with what you need the money for, search official sources, and never pay anyone to get a grant. For household bills, benefit programs and local agencies will usually help you faster than a grant database.
This article is general education, not financial, legal, or tax advice. Your situation may differ, so check the details with the lender, agency, or a qualified professional before you act. How we research and review articles.