What type of grants is provided for a specific purpose for a limited period of time?

Project grants are a type of financial assistance specifically designated for particular projects or initiatives within a defined timeframe. These grants are often awarded to support pilot projects, research endeavors, or programs that address specific issues or needs within a community or organization. The key characteristics of project grants include their targeted nature and time limitation, which helps ensure that funding is allocated effectively toward achieving specific outcomes or objectives within the prescribed duration.

In contrast, categorical grants are typically broader in their application but are still directed at specific areas or programs mandated by legislation. Formula grants are distributed according to a predetermined formula, often based on demographics or other criteria, without the same focused purpose as project grants. Block grants provide a lump sum of funding for broader purposes, giving states or local governments more discretion in how they allocate the resources, often lacking the specificity and time restrictions associated with project grants.

Understanding these distinctions helps clarify why project grants are uniquely defined by their intent to fund specific activities within a limited period.