(a) Direct grant programs. The Department administers two kinds of direct grant programs. A direct grant program is either a discretionary grant or a formula grant program.
(b) Discretionary grant programs.
(1) A discretionary grant program is one that permits the Secretary to use discretionary judgment in selecting applications for funding.Cross Reference:
(2) The Secretary uses selection criteria to evaluate the applications submitted for new grants under a discretionary grant program.
(3) To evaluate the applications for new grants under the program the Secretary may use:
(i) Selection criteria established under § 75.209.
(ii) Selection criteria in program-specific regulations.
(iii) Selection criteria established under § 75.210.
(4) The Secretary may award a cooperative agreement instead of a grant if the Secretary determines that substantial involvement between the Department and the recipient is necessary to carry out a collaborative project.
(5) The Secretary uses the selection procedures in this subpart to select recipients of cooperative agreements.
(c) Formula grant programs.
(1) A formula grant program is one that entitles certain applicants to receive grants if they meet the requirements of the program. Applicants do not compete with each other for the funds, and each grant is either for a set amount or for an amount determined under a formula.
(2) The Secretary applies the program statute and regulations to fund projects under a formula grant program.