It's true: The federal government hands out a great deal of money each year. It is awarded primarily through various types of grants. It is also true that a large percentage of this money that is appropriated for federal grants goes unawarded, because most people simply aren't aware of the grant programs, or believe that only large corporations and scientists doing research projects are eligible for the programs.

So how can the average person gain access to government grant money? First, be aware that receiving a federal grant award requires some work on your part. You must be able to complete a specific project of government interest or perform some given task. In this way, federal grants differ from entitlements and government benefits, where if you have a need for the money and meet certain other criteria you are eligible to receive an award.

One type of government grant is known as a project grant, and as the name suggests, it requires the grantee to complete some specific action or project. There are a variety of project grants that are available for people or organizations with the resources to complete the project. If you accept a project grant award, you are obligated to complete the project, and could face stiff legal penalties for defaulting on the agreement.

There are some instances where the government provides grant money with no strings attached. This type of grant is known as "direct payments with unrestricted use." If you are eligible you can receive the money and use it as you choose. Just a few examples of this type of grant are: unemployment insurance, grants for farmers and fishermen, and railroad workers' compensation. There are hundreds of these grants that are available to qualified parties, and while the amounts of the awards vary, the money is granted without obligation to repay it or complete any task.

Not all government grants are dispersed as a sum of cash; many of them take the form of specific benefits or assistance programs. For instance, the government may provide low interest loans to people who would otherwise not be able to obtain financing with a traditional lender. FHA and VA mortgage programs, and federal student loan programs fall into this category of government benefits. The government guarantees lenders that they will be repaid, and insures them against default.

While there are many federal grant programs, they are by no means the only source of grant money. Thousands of private foundations award money for a variety of reasons, and these foundations are required to distribute at least five percent of their assets each year in order to retain their tax exempt status. Private foundation money is awarded to people pursuing a college degree, learning a trade, or even starting a business. States also disperse grant money to its residents who are seeking employment, education, and housing.

While tv infomercials may portray grant money as an instant way to become wealthy, the truth is that not everyone can obtain grant money, and those who do receive an award are not going to become rich overnight. They are however, correct in their assertion that millions of dollars of government grant money go unawarded each year, and that you may be eligible for some of the money for one reason or another. You really have nothing to lose in doing some research and finding out just how much.