Increase use of matching funds for federal grants
The overwhelming majority of grants given by Federal Agencies are in outright funds. If a percentage of every federal grant (say a minimum of 15%) had to be matching funds then the actual amount of federal grant dollars could be significantly reduced. For instance, if total project cost is $100,000, the grantee could ask for $40,000 in outright funds, $30,000 in federal matching (they would then raise the other $30,000 ...more »
The overwhelming majority of grants given by Federal Agencies are in outright funds. If a percentage of every federal grant (say a minimum of 15%) had to be matching funds then the actual amount of federal grant dollars could be significantly reduced. For instance, if total project cost is $100,000, the grantee could ask for $40,000 in outright funds, $30,000 in federal matching (they would then raise the other $30,000 from a third party or they would forfeit that other $30,000). The requirement of matching funds would reduce total federal grant amounts (but not the actual funds available for each project), encourage grantees to diversify their pool of potential funders, and also vet projects in the marketplace.
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