The company that receives funds from an entity passes through is considered a sub-recipient. This is generally the case when a federal program does not have the organizational capacity to provide direct assistance to the final beneficiaries and needs the assistance of other entities. For example, federal crime prevention programs can be assigned to an attorney general`s office. This office may decide to allocate a portion of its federal grant to cities and municipalities located within the state for delinquency prevention activities, such as neighbourhood surveillance programs or the provision of new equipment to police forces, through a sub-subsidy (or sub-subsidy). The original beneficiary has become a pass-through unit and cities and counties have become sub-recipients to address the goal of the federal crime prevention program. When you say „state subsidies,“ we ask, „Which one?“ The federal government allows fellows to act as transit centres to provide funds to other recipients. The Passe-Through unit receives federal funds that it „transmits“ or transmits to other recipients. If you are a person who wants a „state grant,“ you can use that term to refer to different forms of federal financial assistance that may not be a subsidy. For example, food commodities such as SNAP, education credits and health insurance are not subsidies, so you won`t find these federal financial support programs on Grants.gov. You should check these links or the Benefit Finder tool for Benefits.gov for more information. The application for passport grants to public agencies that have received or will receive a federal award has two advantages: sub-recipients can in turn transfer the funds to one or more sub-recipients to serve the purpose of the federal program.

For example, the cities mentioned above pass on some of their funding to non-profit organizations that patrol neighbourhoods at night. Therefore, a recipient can be considered both a hobby entity and a sub-receiver. Many federal grants are awarded to federal governments, and federal governments then allocate underfunding to other organizations in order to meet the public purpose of the subsidy program under their state jurisdiction.