A city will serve as a conduit for federal grant money, which is sent to the city by the state government and must be remitted to various not-for-profit organizations that will use the money. The ultimate allocation of the money is decided by the state government. Which of the following terms describes the nature of this grant?

Question

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This is a pass-through grant, meaning the city serves as a pass-through entity for the grant money, remitting the funds to the not-for-profit organizations that will use the money as decided by the state government.

A City Will Serve as a Conduit for Federal Grant