What is a discretionary grant?

A discretionary grant is typically associated with project grants, which are funds awarded to support specific projects or programs. These grants are often given at the discretion of the awarding agency, meaning that they have flexibility in deciding which proposals to fund based on their own criteria and priorities. Discretionary grants are usually competitive, requiring applicants to submit proposals that will be reviewed and scored according to predetermined standards.

In contrast, options that refer to monetary gifts without conditions or types of loans do not accurately describe discretionary grants, as they involve specific project funding and oversight rather than unrestricted funding. Additionally, mandatory funding appropriations are typically set by law and do not allow the same level of agency discretion, as they are required to be allocated regardless of specific project submissions. This distinguishes discretionary grants further, emphasizing their competitive nature and the specific requirements that must be met by applicants.