USA Banner

Official US Government Icon

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure Site Icon

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

What is the difference between discretionary grants and mandatory (aka: formula) grants?

Answer:

There are two main types of grants: discretionary and mandatory. Discretionary grants permit the agency to exercise judgment in selecting recipients through a competitive grant process. Mandatory grants are required to be awarded if the recipients meet certain predetermined conditions.

Last Updated : March 4, 2014