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Finding a Free Government Grant

Finding a Free Government Grant

Free government grants are awards given by the federal government to support the public interest.  This can be as broad as student loans guaranteed by the federal government, to specific benefits to foundations and charities that work in public interest.  The government expects no direct benefit from the disbursement of free government grants.  Arrangements where the government would expect specific good and services would constitute a contract, but grants generally have broad range in what they may be used to fund or procure.

Does the government have the legal authority to disburse free government grants?
The provisions that allow for persons to receive a free government grant are in Title 31, Section 6304 of the US Code.  It specifically states that the US Government may transfer things of value to local governments or other entities to benefit the public interest, without much involvement from the government in the use of these funds.

How does a free government grant benefit the average individual?
Receiving free government grants can be a windfall for private individuals that would otherwise have to fund their activities with private loans.  Disbursed grants are not repaid to the government and there is the guarantee that offers recipients a significant degree of freedom in determining how it is spent.  They should of course, spend it according to the conditions under which they applied for it.  A college education, private residence or small business can be funded with free government grants, so long as sufficient need is established by the applicant.


What are types of free government grants?
Block grants – these grants are disbursed to state and local governments and not individuals.  The disbursements of these grants from the government are determined by formula and these grants are spent at the discretion of the state.
Housing grants – these grants are intended to help potential homeowners buy, renovate or invest in homes.  Sufficient need must be established as these grants are generally for low income families.  Federal Housing Administration insurance is a type of grant that insures private lenders when lending to low income families that would ordinarily not receive credit.
Small business grants – in keeping with the belief that small businesses stimulate local economies and employ local residents, there are free government grants for small businesses to expand, make capital investments and hire more employees.
College grants – Pell grants of up to $1,500 are offered to exceptional college students to help them pay for college expenses.  This free government grant is not a loan and will not have to be repaid by the student.  In addition to Pell grants, several government subsidized loans exist that have fixed interest rates and favorable rates for students.

Should I trust organizations that claim to help me find free government grants?
No.  Generally, these organizations research free government grants that are already public knowledge and sell this knowledge to unsuspecting consumers.  You are best served researching free government grants yourself and many federal agencies will have clear guidelines on how to apply for free government grants for education, business and housing.  Do not pay for information on receiving free government grants.