Why are federal grants often considered not free?

Federal grants are often considered not free because they typically come with various matching requirements and administrative costs that recipients must account for. When a grant is awarded, it may require the recipient to provide a certain percentage of funding as a match, which means that the organization has to allocate its own resources in conjunction with the federal funds.

Additionally, even if the grant provides funding for a specific project or program, managing and administering that grant involves costs such as staffing, reporting, and compliance with federal regulations. These requirements can place a significant burden on the recipient's existing budget and may limit the apparent "free" nature of the funding. In essence, while federal grants do provide additional financial resources, they also impose obligations that must be carefully managed and funded, contributing to the perception that they are not entirely free.