Federal Funding

Federal funding is provided through grants, contracts or cooperative agreements.

What is the difference between grants, cooperative agreements and contracts?

Grants

The federal government uses grants to achieve a public purpose, promote a national goal, address a societal
issue, or encourage an activity desired by the granting agency. Grants generally offer a significant degree of
flexibility and autonomy to principal investigators (PIs).

Cooperative Agreements

Cooperative Agreements are very similar to grants, with
one key distinction: they involve significant participation
from the granting agency. This substantial involvement
means that federal employees are actively engaged in
executing or managing parts of the program, playing a
more direct role in carrying out the program.

Contracts

In contrast, contracts are more stringent.
A contract agreement seeks to acquire a good
or service that will directly benefit the government.
A contract is a binding agreement between the agency and
the researcher to deliver services in exchange for payment.