Grant-In-Aid

AAA

DEFINITION of 'Grant-In-Aid'

A transfer of money from the federal government to a state government, local government or individual person for the purposes of funding a specific project or program. The federal government gets this money from income tax revenues. Grant money is not a loan, and does not have to be repaid, but it does have to be spent according to the federal government's guidelines for that particular grant.

INVESTOPEDIA EXPLAINS 'Grant-In-Aid'

Grant-in-aid can be awarded to a university faculty member to pursue a particular line of research, but there will be restrictions, which will vary by grant, on how the money can be used. For example, a permitted use of the funds might be to pay undergraduate students to assist with the research; a non-permitted use might be the payment of university utility bills.





The recipient will also have to meet certain requirements to qualify for the aid. An individual recipient might be required to meet certain citizenship and/or residency requirements, for example.

RELATED TERMS
  1. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
  2. Stipend

    A predetermined amount of money that is provided periodically ...
  3. Pell Grant

    A program that awards money to eligible undergraduate and, in ...
  4. Government Grant

    A financial award given by the federal, state or local government ...
  5. Grant

    The issuance of an award, such as a stock option, to key employees ...
  6. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
RELATED FAQS
  1. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.?

    Medicare and Medicaid have enormous influence on the pharmaceutical, or drugs, sector in the United States. For instance, ... Read Full Answer >>
  2. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  3. What are the ethical arguments against government subsidies to companies like Tesla?

    The ethical argument behind government subsidies is that they should be put into place to help industries that will, in turn, ... Read Full Answer >>
  4. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    The Financial Accounting Standards Board (FASB) promulgates generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
  5. How autonomous are special administrative regions?

    When most people think of special administrative regions, or SARs, they are referring to Hong Kong and its relationship with ... Read Full Answer >>
  6. Can a special administrative region declare autonomy?

    Special administrative regions, or SARs, namely Hong Kong and Macau, do not declare autonomy so much as they are granted ... Read Full Answer >>
Related Articles
  1. Savings

    Canadian Grants And Tax Credits Fund Education

    RESPs and other grants help parents save for post-secondary education for their children.
  2. Credit & Loans

    Your Kid's College Loan: Who Should Foot The Bill?

    Discover the federal student loan options for both parents and students.
  3. Options & Futures

    Paying For College In An Economic Downturn

    There are many ways to fund a child's education including loans, scholarships, grants and protecting your investments.
  4. Credit & Loans

    Student Financial Aid Changes: FAFSA 2009

    The Free Application for Federal Student Aid got an upgrade in 2009. All those applying should be aware of these improvements.
  5. Budgeting

    Pay For A College Education With Retirement Funds

    These savings vehicles may be better than college saving funds for some families.
  6. Retirement

    College Cost Reduction Act Helps Students Meet Payments

    This legislation can help families pay college costs and reduce student debt.
  7. Budgeting

    Is Level Money The Perfect Budgeting Tool?

    Here’s a detailed review of how Level Money works and whether it could be the perfect tool to help you budget.
  8. Economics

    Explaining Budget Surplus

    Budget surplus is an economic term describing a situation where revenue exceeds expenditures.
  9. Economics

    Understanding Iran Sanctions by the US

    Considering US sanctions have been in place for almost 40 years, and Iran is still considered a troubled region, can we say they have been effective?
  10. Economics

    Industries That Will Benefit From Lifting Iran Sanctions

    After sanctions related to Iran's nuclear program are lifted, a number of global industries should benefit from the opening up of second largest country in the Middle East.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!