Granting the Government Grants

The Office of Management and Budget estimates that there are currently more than 600 active grant programs available to state and local governments, with more than 150,000 awards to be made this year. Those funds represent opportunities for those IT solution providers that focus on selling to these state and local government agencies.

Three different types of grants are available to state and local governments: formula, which are awarded without applying for them; discretionary, which involve a cooperative application process; and cooperative, which involve the federal agency after it is awarded.

Health care, income security and transportation show the largest dollar value increases in grant awards between 2003 and 2006.

Marilyn O'Hara is associate research director at VARBusiness.