Guide
Grant vs. cooperative agreement vs. contract: what's the difference?
Updated · GrantsJunction editorial
Federal grants and cooperative agreements both provide financial assistance to carry out a public purpose. The difference is agency involvement: under a cooperative agreement the federal agency expects substantial involvement in the project, while under a grant it does not. A procurement contract is different — it buys goods or services for the government's own direct benefit. These distinctions come from the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301–6308).
What it means for you
- Cooperative agreements usually describe the agency's role in the notice — for example, approving key staff, participating in planning or collaborating on activities.
- Both grants and cooperative agreements follow the federal Uniform Guidance (2 CFR 200) for costs, reporting and audits.
- Contracts follow the Federal Acquisition Regulation and are posted on SAM.gov contract opportunities, not as Grants.gov funding notices (though a few procurement notices do appear on Grants.gov).
Frequently asked questions
Is a cooperative agreement harder to get than a grant?
Not necessarily. Competition depends on the program, not the instrument. Expect more interaction with agency staff after award.
General information, not legal or grant-writing advice. Rules can change — the official notice and the awarding agency govern.