Federal grants refer to financial assistance provided by the government, specifically through federal agencies. These funds are awarded for specific purposes and programs that benefit the public interest or address a particular need in society. Federal grant money is not considered a loan, so recipients do not have to repay it. Instead, these grants are seen as an investment into projects or initiatives that will ultimately improve communities or advance certain fields of study. The government provides federal grants for various purposes such as education, healthcare, scientific research, infrastructure development, and disaster relief among others.