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Formula grants are funding programs that you do not compete for, even though you must apply and meet other specified requirements. They ensure that designated recipients will receive funds and are usually administered and managed by State Administering Agencies. 

 Discretionary grants are awarded directly by OJP to eligible recipients, most often on a competitive basis. Applications undergo a preliminary review process to ensure that they are complete and meet the eligibility requirements. Eligible applications are then reviewed and scored by a panel of subject matter experts. Strengths and weaknesses are noted based on the selection criteria outlined in the grant solicitation.

 A cooperative agreement, typically a discretionary award, is a legal instrument that permits OJP to transfer money or something of value to accomplish a public purpose of support authorized by federal statute. This type of award is used when it is anticipated that the Federal Government will require substantial involvement.

Here are some key points about state grants:

1. Federal Grants to State and Local Governments:
   
   • The federal government awards hundreds of billions of dollars in grants to state and local governments annually.
   • The grants support essential services such as health care, education, social services, infrastructure, and public safety1.
   • Examples of federal grant programs include Medicaid, highway programs, and education assistance2.

Unlike loans, grants do not need to be repaid, as long as recipients complete the project managing the grant process procedures.  

Remember that while grants do not require repayment, they are typically awarded to organizations and programs rather than individual personal expenses. If you’re seeking financial aid, explore legitimate grant opportunities and government loans that align with your specific needs.