Financial Assistance

Federal assistance supports activities that touch every American, including medical research, transportation infrastructure, student aid, public housing, and disaster assistance. The Federal government spends nearly $800 billion in grants annually, accounting for nearly 20 percent of the Federal Budget and approximately 1,800 grant programs. The Federal government also provides other forms of financial assistance such as: loans, loan guarantees, interest subsidies, technical assistance, and insurance. These other forms of financial assistance account for approximately 500 additional assistance programs. In FY 2020, the Federal government issued more than $3 trillion in financial assistance with the passage of the CARES Act and other supplemental appropriations in response to the pandemic.

Federal financial assistance supports the public good and helps Federal agencies execute their programmatic missions. OMB estimates that there are nearly 40,000 Federal financial assistance recipients who expend over $500,000 annually in assistance dollars. This does not include the many thousands who expend less than this amount. For states and universities, Federal financial assistance accounts for approximately a quarter and third of their budgets respectively. Other recipient types include non-profit organizations, tribes, local governments, and small businesses.