Federal Grants
Funding from the federal government to cities for specific purposes — housing, transportation, public health, law enforcement, and environmental protection.
How It Works
Major federal grant programs include Community Development Block Grants (CDBG), HOME Investment Partnerships, Surface Transportation Block Grants, COPS hiring grants, and EPA clean water/drinking water funds. Federal grants come with extensive reporting requirements and restrictions on how money can be spent. Grant amounts are tracked publicly through USASpending.gov. Some grants are formula-based (allocated by population or need), while others are competitive.
Related Terms
- Intergovernmental Revenue — Money a city receives from federal or state government through grants, shared taxes, or direct transfers.
- Community Development Block Grant (CDBG) — A major federal grant program administered by HUD that provides cities with funding for housing, infrastructure, and economic development in low- and moderate-income areas.
- Revenue Diversity — The degree to which a city's revenue comes from multiple sources (property tax, sales tax, fees, grants) rather than being concentrated in a single stream.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.