What Personal Grants Are and How to Apply

When you need financial assistance but want to avoid debt, a personal grant may be a worthy option to consider. The government offers grants designed to help Americans cover certain expenses and navigate periods of financial hardship. These programs typically have specific eligibility requirements, and not everyone will qualify. Here is how to know if you are eligible.

Speaking with a financial advisor to better understand how grant assistance fits into your financial plan.

What Are Personal Grants?

Many people are familiar with government assistance programs, such as small business grants and subsidized healthcare. Fewer realize that certain grant programs are also available to individuals.

If you meet the eligibility requirements, a personal grant may be an option. Unlike personal loans, you do not have to repay grants, making them a valuable resource for individuals facing financial hardship.

Most federal grant funding goes to institutions such as universities, hospitals and nonprofit organizations. However, a limited number of programs provide funding directly to individuals, along with a broader set of government benefits that do not require repayment. For the purposes of this article, a personal grant refers to all government financial assistance that you do not need to repay.

It’s important to note that the government does not offer grants to help pay off consumer debt, such as credit card balances. However, it provides financial assistance to Americans facing specific financial challenges.

When to Seek a Personal Grant

A personal grant can be an alternative to taking on debt.

Some programs support everyday expenses, such as children’s clothing or school supplies. Others may help with longer-term financial goals, including housing-related assistance.

If you are experiencing financial strain, applying for a grant may be worth considering. Unlike payday loans or installment loans, grants do not create ongoing repayment obligations or interest costs. There is also no fee to apply for legitimate government grants, so your main investment is the time and effort required to complete the application.

That said, grants do not offer immediate relief. Because government agencies administer these programs, applicants should expect some administrative processing delays.

While the approval process may take longer than obtaining a high-cost loan, government grants are a far safer option than borrowing through high-interest lenders.

Applying for Personal Grants From the Government

The government focuses its grant-giving on certain classes of individuals. For example, veterans and single mothers have better odds of getting a personal grant than young single men with no children and no record of military service. Still, you shouldn’t let fear of rejection keep you from applying for the funds you need.

To apply for personal grants, go to benefits.gov. You can search for grants and benefits for which you might be eligible from these categories:

• Child Care/Child Support
• Counsel/Counseling
• Disability Assistance
• Disaster Relief
• Education/Training
• Employment/Career Development Assistance
• Energy Assistance
• Environmental Sustainability/Conservation
• Food/Nutrition
• Grants/Scholarships/Fellowships
• HIV/AIDS
• Healthcare
• Housing
• Insurance
• Living Assistance
• Loan/Loan Repayment
• Medicaid/Medicare
• Military
• Social Security/Retirement
• Tax Assistance
• Volunteer Opportunities

Whether you need help making rent, tackling student loans or paying your medical bills, the government may have a grant for you.

Benefits.gov will take you through a quick onboarding process. It will ask you questions about personal details like your income, marital status, age, employment status and place of residence.

Based on your answers, you’ll receive a list of grants, loans and temporary assistance programs for which you may be eligible. You can then apply for the help you need.

Keep in mind that the application process can take weeks before you get a response, so be patient and apply as early as possible.

Beware of Fraud When Applying for Personal Grants

If you have internet access and a little time, there’s no need to pay someone to search for you.

A quick online search for personal grants will turn up many sites offering to get you federal grant money. If they help with grants from private organizations and non-profits, they may be worthwhile. However, with government grants, there’s really no reason to hire a middleman to find grants for you, so consider the DIY approach for applications.

Also, avoid sites that charge a fee for their services, as many charge for something you could do yourself for free. Some of them may even be phishing sites that just want your name, date of birth and Social Security number for fraud.

Don’t be tempted by sites that guarantee you money. And, remember, unsolicited offers of personal grants by phone, mail and email are not from the government – they’re from fraudsters.

Personal Grants and Taxes

Taxes on personal grants can vary based on the nature and purpose of the grant, as well as your jurisdiction’s specific tax laws. It’s important to understand your tax liability before accepting a grant that carries a ton of tax you can’t afford.

Taxability of Grants

• Taxable grants. Most personal grants are considered taxable income by the IRS unless specifically exempt ¹ . This means that you need to include the amount you receive in your gross income for the year.
• Non-taxable grants. Some grants are specifically excluded from taxable income, such as certain disaster relief payments or specific types of scholarships ² .

Reporting the Income

• Form 1099-G. If you receive a taxable grant, the grantor may issue Form 1099-G, which reports the amount of the grant to you and the IRS ³ .
• Other forms. Depending on the nature of the grant, you may receive other forms, such as a Form 1098-T for educational grants ⁴ .

Exclusions and Exceptions

• Disaster relief. Payments for disaster relief are generally excluded from taxable income if they are made by a qualified government or charity and used for necessary personal, family, living or funeral expenses ⁵ .
• Scholarships and fellowships. Certain scholarships and fellowships used for tuition, fees, books, supplies and equipment required for courses are not taxable.
• Qualified expenses. If the grant is used for specific qualified expenses, such as medical ⁶ or educational expenses ⁷ , you may be eligible to claim deductions or credits. For instance, educational grants for tuition may qualify for education credits.
• Business grants. If the grant is related to a business or self-employment, the expenses paid with the grant may be deductible as business expenses ⁸ .

If you receive a significant grant, you may need to make estimated tax payments throughout the year to avoid underpayment penalties. This is especially relevant if the grant substantially increases your income.

Understanding how your grant fits into your overall tax picture is crucial, especially if you’re receiving a sizable grant that you must account for. Consider talking to a tax professional to help you determine your tax liability for taking a specific amount of money or type of grant.

Finding State and Local Grants

While Benefits.gov is a strong starting point for federal assistance, it only represents one layer of available funding.

State governments, counties and municipalities administer their own grant programs independently. These local options are often overlooked by applicants who focus exclusively on federal resources.

State and local grants can offer several practical advantages. Because fewer people apply at the local level, competition for funds is sometimes lower. Processing times may also be shorter, which can matter for an urgent financial need. Eligibility requirements vary by program and location, so a program you do not qualify for in one state may have an equivalent in another with different criteria.

One of the most reliable ways to find local assistance is through the 211 helpline, a free service available in most of the United States. By calling 211 or visiting 211.org, you can connect with a specialist who can identify programs in your area covering housing, utilities, food, healthcare and other essential needs. Many of these programs receive funding at the state or county level and do not appear in federal databases.

Your state’s Department of Social Services is another direct resource. Most states maintain their own benefits portals listing programs available to residents. Searching your state’s name alongside terms like “hardship assistance,” “emergency relief fund” or “resident grant program” can surface options that Benefits.gov may not index.

It is also worth contacting your local county or city government office. Some municipalities offer one-time emergency grants for residents facing sudden financial hardship, such as an unexpected medical expense or job loss. These programs tend to be modest in size but can provide meaningful short-term relief with minimal bureaucracy compared to federal applications.

Alternatives to Personal Grants

Not everyone will qualify for a personal grant, and available funding may be limited. If you are not eligible, there are other legitimate ways to seek financial assistance.

• Personal loans. Low-interest personal loans from community banks or credit unions may help with short-term expenses. These loans require repayment but can offer lower interest rates than credit cards or payday lenders.
• Government assistance programs. These programs can also provide relief for essential costs and include unemployment benefits, housing vouchers, food aid and energy assistance. These programs typically depend on income or household need, and you do not have to repay them.
• Educational tools. For education-related expenses, scholarships, fellowships and work-study opportunities can reduce costs without creating new debt. Many of these programs are available through schools, nonprofit organizations and private foundations.
• Community and nonprofit organizations. These organizations, including local charities and faith-based groups, may also offer emergency grants or hardship funds for specific situations like rent, utilities or medical expenses.

When exploring these alternatives, review eligibility criteria carefully. Confirm that any program or lender you work with is legitimate and transparent about its terms.

Bottom Line

Personal grants can provide a valuable alternative to missing payments, cutting back on essential expenses or taking on additional debt. Be sure to review eligibility requirements carefully, complete applications accurately and avoid third parties that claim to guarantee free money. When used appropriately, personal grants can play a positive role in your overall financial strategy, helping you stabilize your finances in the short term while supporting longer-term money management goals.

Tips for Managing Your Finances

• To ensure you can retire and achieve your other financial goals, you need to be in control of your finances. A financial advisor can help with this. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you’re not ready to work with an advisor, creating a stringent budget is a good first step toward mastering your finances. SmartAsset’s budget calculator can help you start.

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