What type of grants provide funding for specific purposes for limited periods of time?

The correct choice identifies funding that is typically allocated for specific projects or programs and is granted based on a competitive application process or discretion of the granting authority. Project grants, also known as discretionary grants, are designed to fund particular initiatives with defined objectives, often for a limited duration. Recipients must demonstrate how the funds will be used to achieve the intended outcomes, and they may need to submit reports on progress and expenditures.

This type of grant contrasts with other grant types that may not be as restrictive in their use. For instance, formula grants generally provide funding based on predetermined formulas set by legislation and are not limited to specific projects. Entitlement grants are funds that are guaranteed to individuals or organizations based on criteria specified in law, such as social security or Medicaid, without the competitive process associated with project grants. Categorical grants are also designated for specific purposes but often come with more strings attached, adhering to broader categories rather than being tied to distinct projects with defined timelines.