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 who 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, as the city is merely acting as a conduit for the money, which is ultimately allocated by the state government to specific not-for-profit organizations.

A City Will Serve as a Conduit for Federal Grant