Federal Grants-in-Aid Administration: A Primer

The federal government administers a wide range of programs providing grants-in-aid (or simply “grants”) to nonfederal entities such as state, local, territorial and tribal governments, nonprofit organizations, and individuals. These programs aim to advance federal policy goals that have generally been authorized by Congress. While federal grants have a long history, they have experienced dramatic growth over the past century, both in total grant award amounts and the number of programs. As of FY2025, there were at least 1,183 funded federal grant programs. In constant FY2017 dollars, federal outlays for grants to state and local governments grew from $17.7 billion in FY1940 to $882.8 billion in FY2024. Due to the broad range of policy objectives, grant program authorizing statutes, grant recipients, and agency-level administrative procedures, there is wide variation across and within federal agencies in the administration of federal grant programs. This variation can make it difficult for Congress to compare program performance, both within and among federal agencies, and to exercise its oversight of federal agencies. This report is designed to assist Congress in its oversight of federal grant programs by discussing federal grants in the context of other federal financial assistance; describing the different types of federal grants; outlining the various authorities governing federal grants; reviewing the entities involved in federal grant administration; documenting the typical life cycle of a federal grant award; and analyzing selected considerations for Congress, discussing challenges tracking federal grant awards, oversight of federal grant subawards, and Congress’s role in federal grant management and administration.