---
kind: "section"
citation: "31 U.S.C. § 6304"
title: "31"
title_heading: "Money and Finance"
number: "6304"
heading: "Using grant agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/31/6304"
units:
  - "Subtitle V — General Assistance Administration"
  - "Chapter 63 — Using Procurement Contracts and Grant and Cooperative Agreements"
---

# §6304. Using grant agreements


An executive [agency](/usc/31/6401.md?p=1) shall use a grant agreement as the legal instrument reflecting a relationship between the United States Government and a [State](/usc/31/6201.md?p=2), a [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when—

- (1) the principal purpose of the relationship is to transfer a thing of value to the [State](/usc/31/6201.md?p=2) or [local government](/usc/31/6302.md?p=3) or [other recipient](/usc/31/6302.md?p=4) to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
- (2) substantial involvement is not expected between the executive [agency](/usc/31/6401.md?p=1) and the [State](/usc/31/6201.md?p=2), [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when carrying out the activity contemplated in the agreement.

## Source credit

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1004.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
| 6304 | 41:504. | Feb. 3, 1978, Pub. L. 95–224, § 5, 92 Stat. 4. |

The words “type of” are omitted as unnecessary. The words “money, property, services” are omitted as being included in “a thing of value”. The words “in order” are omitted as surplus. The words “law of the United States” are substituted for “Federal statute” for consistency.