Grant or cooperative agreement? The types of federal awards explained
A grant gives you money for a project with limited agency involvement. A cooperative agreement is also financial assistance, but the agency expects to be substantially involved in the work, for example by approving key staff or steps. Separately, formula and block grants go to governments by a set formula, while project grants are competed among applicants.
Updated October 31, 2026
Grants and cooperative agreements
Both are ways a federal agency funds work that serves a public purpose, as opposed to a contract, which buys goods or services for the government’s own use. The Federal Grant and Cooperative Agreement Act of 1977 draws the line between them: in a cooperative agreement the agency expects substantial involvement in carrying out the project. The notice tells you which one you are applying for and what that involvement looks like.
Formula, block and project grants
How money is distributed matters more to most applicants. Formula grants and block grants go to states, tribes or local governments according to a formula set in law, such as population or need. Project grants are competed: applicants submit proposals and the best-scoring ones are funded.
That distinction explains a lot of what you see in award data. The largest federal grant programs, such as Medicaid grants to states, are formula programs that no private organization can apply for directly. Our program pages show which kinds of organizations each program has funded, so you can tell a competed program from a formula program at a glance.
Where to find open opportunities
Most competed opportunities are posted on Grants.gov, and every one we list is on our open grants page. Money from formula grants reaches local organizations through state agencies, so for those, watch your state agencies’ own funding announcements.
Questions people ask
Is a cooperative agreement harder to manage than a grant?
It usually involves more contact with the agency, such as joint planning and approvals, which the notice spells out. The financial rules are the same Uniform Guidance that governs grants.
Can a small nonprofit apply for a formula grant?
Not directly, in most cases. Formula and block grants go to states and other governments, which often pass money on to local organizations through their own competitions.