Grants are financial awards provided by a funding/issuing authority (grantor) to a recipient (grantee) with the purpose of assisting the grantee to perform certain initiatives. Grants are critical sources of funding for many government and nonprofit agencies and provide resources for operations and/or financial support when other funding means are not available or sufficient. In 2018, the Federal Government spent $697 billion on aid to State and local governments and approximately $750 billion in 2019 and 2020.
Due to the sizable effect of COVID-19, agencies are faced with additional challenges navigating grant terms and conditions. The grantor agency may not have anticipated potential scenarios resulting in unclear guidance or guidance that is subject to change. If changes occur during a grant period, it can be difficult to change current practices, which is the case with some federally funded programs related to COVID-19, such as the CARES Act.