After becoming the first African-American President of the United States of America, Barack Obama had to face an uphill task of turning around the US economy. The administration hence enacted the American Recovery and Reinvestment Act of 2009 (ARRA) under which the government promised to pump in 787 billion dollars in the US economy. The sum of 247 billion dollars from the ARRA is allocated for government grants, contracts and loans. These Obama grants or government stimulus grants are aimed at improving the education system, providing support for small businesses, and improving the quality of life of many Americans.
Obama Grants for Education
Sensing the need to better equip the American population to compete in the global market, the government has increased the funding of many existing grants. New grants are also being introduced to help educational institutes to upgrade their facilities and programs. Obama grants are also helping many individuals to achieve their dream of higher education and gainful employment. Some of these grants have been popularly come to be known as Obama grants for single mothers as they target the marginalized groups. The Obama grants for education can be divided in two halves, institutional grants and individual grants.
Institutional Grants
These grants are given to educational institutes to help them improve their infrastructure and develop study programs that empower students to compete in the global market place. Financial aid received from the government will also enable educational institutes to retain or employ highly skilled teaching staff.
Community Colleges: The government funding will enable community colleges to form partnerships with business leaders to create new programs that make students job ready. Government spending for community colleges over the next 4 years will be over 2 billion dollars. The Obama grants for college will go towards upgrading teaching facilities in these institutions.
MSIs and HBCUs: Minority Serving Institutes (MSIs) and Historically Black Colleges and Universities (HBCUs) will also benefit from the Obama grants for education. The money will help these cash strapped institutes to better equip their teaching facilities. Funding will also enable these institutes to expand their current programs and develop new ones that prepare students for employment.
Rural education: Under the ARRA the government has provided nearly 7 billion dollars for rural education. Under the Department of Labor the government has provided 650 million dollars for workforce training and several other services. A sum of 280 million dollars was given to the Bureau of Indian Affairs Lands for school construction. This federal assistance program has also helped create teaching jobs and other support functions.
Individual Grants
To help students from low income families get higher education the government has increased the funding for federal grants like the Pell Grants. The Obama administration announced nearly 40 billion dollars for education grants, Which has nearly doubled the Pell grant amount, therefore, helping many eligible students. Some of the individual education grants are;
Pell Grants: The maximum financial reward under the Pell grants for the year 2010-2011 was USD 5,500. The grant amount is calculated by taking into consideration the Expected Family Contribution (EFC). Pell Grants are also known as Obama grants for moms, as these grants are need based grants.
TEACH Grants: Teacher Education Assistance for College and Higher Education (TEACH) Grant Program gives up to $4,000 for each year. This grant is for students who wish to pursue the teaching profession. Recipients of this grants have to teach for at least 4 academic years in education institutes serving students from low income families. These grants are referred to as Obama grants for women as many women like to get in the teaching profession.
SMART Grants: The National Science and Mathematics Access to Retain Talent (SMART) Grant is given to eligible students for their third and fourth year of undergraduate study. The students must maintain a Grade Point Average (GPA) of 3.0. The amount of the SMART grants can go up to USD 4,000 for each year, it is awarded to the recipient of the Pell grant.
To apply for individual continuing education grants student are required to fill the Free Application for Federal Student Aid (FAFSA) form. Information and guidance regarding education grants is available with the financial aid office of most colleges. Counselors will also guide you on how to write a grant proposal.
Obama Grants for Business
Although the government does not give grants to individuals to start their own profit making business, they do support small businesses that benefit the community. To empower the American entrepreneur Obama grants for small business help fund projects that are geared for community development. These grants are also known as Obama debt relief grants.
The Catalog of Federal Domestic Assistant (CFDA) website gives all the details about government grants and also allows you to track your grant application. These federal grants also known as Obama business grants have helped develop new infrastructure in the community. Under the ARRA nearly 30 billion dollars have been promised as grants to infrastructure developers to build communities.
Obama business grants will assist Women Owned Small Businesses (WOSBs) and Economically Disadvantaged Women Owned Small Businesses (EDWOSBs) with government contracts. The US Small Business Administration (SBA) helps businesses run by women get contracts for sustenance.
Nonprofit organizations (NPOs) also get government grants as they run projects that work towards betterment of the community. NPOs run child day care services that enable women and single parents to look for gainful employment without worrying about child care. Some organizations also benefit from small business financing because they work towards energy efficiency solutions.
Government grants also go to enterprises that manufacture electric vehicles, components and batteries in America. Government also gives grants to vehicle manufacturers like Ford, GM to encourage them to manufacture electric vehicles. The government has also given out grants to businesses under the broadband connectivity project which aims at bringing broadband connection to the rural areas.
To encourage rural development the government is funding the micro-entrepreneur assistance program which gives grants to farmers helping them compete in the world market. 61 million dollars have been allocated to help people engaged in agriculture related activities. There are government grants for minority producers, grants for value added producers, and for organizations working towards developing new agriculture technologies.
Under the broad spectrum of Obama grants individuals can also avail home improvement grants. These grants are for people from low income families, to help them remove any health hazards from their homes. The money poured into the market in the form of grants has helped stabilize the economy and has created several jobs.
By Indrajit Deshmukh