	Introduction

Congressional authorization of federal assistance to state and local governments can be traced back to the Continental Congress and its approval of the granting of nationally owned land to states formed out of the Northwest Territory. Those lands were to be sold for the support of public education. Congress subsequently granted millions of acres for wagon road and canal construction, 64 million acres for improvements to river navigation, and several thousand acres for the establishment and support of land grant colleges. The first federal cash grant program was adopted in 1808, to provide funds to states to support the National Guard. Since that time, there has been dramatic growth in federal cash assistance programs, now commonly referred to as "federal grant programs" or "federal domestic assistance programs." These programs transfer money, property, services, or other items of value for which the principal purpose is to accomplish a goal authorized by Congress. There are currently 2,179 congressionally authorized federal domestic assistance programs. As the number of congressionally authorized grant programs has increased over time, congressional interest in these programs, in terms of their efficiency and effectiveness, both individually and collectively, has also increased. The increasing cost of federal grants-in-aid assistance has also attracted congressional interest. Figure 2 illustrates that federal outlays for grants to state and local governments have grown from $13.2 billion (in constant FY2005 dollars) in 1940 to $514.6 billion in 2011. The growing number, perceived fragmentation, and complexity of these programs create challenges for federal agencies interested in standardizing various financial and administrative aspects of grant program management. As a result, there is wide variation across and within federal agencies in the administration of federal grant programs. This variation in federal grant administration makes it difficult for Congress to compare program performance, both within and across federal agencies, and to exercise its oversight of federal agencies. Federal agencies administering grant programs face challenges in providing timely, accurate, and detailed information on federal grant awards. Without complete and valid information about the distribution of federal grant funds, Congress may have a diminished capacity to engage in effective oversight of federal grants. This report is designed to assist Congress in its oversight of federal grants-in-aid programs by providing an overview of federal grants-in-aid generally; a description of the typical life cycle of a federal grant, including the processes for selecting, awarding, administering, and overseeing a federal grant award; and an analysis of the tracking of federal grants currently being done by federal agencies.
Congressional authorization of federal assistance to state and local governments can be traced back to the Continental Congress and its approval of the granting of nationally owned land to states formed out of the Northwest Territory. Those lands were to be sold for the support of public education. Congress subsequently granted millions of acres of land to states to support various congressional priorities, including wagon road and canal construction, improvements to river navigation, and the establishment of land grant colleges. The first federal cash grant program was adopted in 1808, to provide funds to states to support the National Guard.
Since that time, there has been dramatic growth in federal cash assistance programs, now commonly referred to as "federal grant programs" or "federal domestic assistance programs." These programs transfer money, property, services, or other items of value for which the principal purpose is to accomplish a goal authorized by Congress.
Currently there are 2,179 congressionally authorized federal domestic assistance programs administered by 26 federal agencies. Federal grant programs comprise 1,714, or 79%, of the domestic assistance programs. As the number of congressionally authorized grant programs has increased over time, congressional interest in these programs, in terms of their efficiency and effectiveness, both individually and collectively, has also increased. The increasing cost of federal grants-in-aid assistance has also attracted congressional interest. Federal outlays for grants to state and local governments has grown from $13.2 billion (in constant FY2005 dollars) in 1940 to $514.6 billion in 2011.
The growing number, perceived fragmentation, and complexity of these programs create challenges for federal agencies interested in standardizing various financial and administrative aspects of grant program management. As a result, there is wide variation across and within federal agencies in the administration of federal grant programs. This variation in federal grant administration makes it difficult for Congress to compare program performance, both within and among federal agencies, and to exercise its oversight of federal agencies.
This report is designed to assist Congress in its oversight of federal grants-in-aid programs by providing an overview of federal grants-in-aid generally; a description of the typical life cycle of a federal grant, including the processes for selecting, awarding, administering, and overseeing a federal grant award; and an analysis of the tracking of federal grants currently administered by federal agencies.
Federal agencies face challenges in providing Congress and the public with timely, accurate, and detailed information about federal grant awards. Limitations on the ability to track the distribution of federal grants raises questions about the validity of the information and suggests that Congress may have a diminished capacity to engage in effective oversight of federal grants.