Which type of grant is known as a discretionary grant?

A discretionary grant is primarily characterized by its allocation based on the discretion of the funding agency rather than through predetermined formulas or criteria. This type of grant is often awarded for specific projects and requires applicants to submit proposals outlining their project goals, methods, and expected outcomes.

Project grants fund specific projects or programs and are typically awarded based on a competitive application process. Agencies consider the potential impact of the proposed project, its alignment with funding priorities, and the capacity of the applicant organization to carry out the project. This process is inherently discretionary, as it allows the funding agency to evaluate proposals and make selections based on the quality and relevance of the projects.

In contrast, other types of grants such as block grants, categorical grants, and formula grants are usually allocated based on specific criteria or formulas set by legislation or policy. Block grants provide a sum of money for broad purposes without detailed guidelines on spending, while categorical grants are designated for specific activities or populations and adhere to stricter regulations. Formula grants distribute funds according to a predetermined formula often based on demographics or other specific factors. Thus, project grants stand out as discretionary, where funding decisions involve a more subjective evaluation of proposed projects.