What category do Grants and Cooperative Agreements fall under?

Grants and Cooperative Agreements are classified as assistance instruments for public purposes because they are designed to provide funding and support to organizations, individuals, or communities to achieve specific objectives that serve the public interest. These instruments facilitate the transfer of federal assistance to various entities without the intent of generating profit, which distinguishes them from contracts that focus on procurement and the exchange of goods and services.

Unlike acquisition contracts, which are legally binding agreements created to fulfill specific government requirements for goods and services, the primary goal of grants and cooperative agreements is to promote public policy goals, foster innovation, or enhance community development. Therefore, understanding the nature of these agreements as instruments of assistance is crucial for effectively managing and utilizing federal funds to benefit the public.