What is the term for funds transferred from one level of government to another?

The term "grant" specifically refers to funds provided by one government entity to another as a means to support specific projects, services, or programs. This can involve transferring money from a federal government to state or local governments, which typically use these funds for designated purposes, such as education, transportation, or welfare programs. Grants often come with stipulations regarding how the funds should be used, promoting accountability and ensuring that the resources are applied in ways that align with governmental objectives.

In a broader context, while various forms of fiscal transfers occur between government levels, a grant distinctly characterizes this relationship as it entails specific requirements and accountability measures. This distinguishes it from expenditures or disbursements made within a single governmental level, which do not involve intergovernmental transfers.