Grant means an award of financial assistance that, consistent with 31 U.S.C. 6304, is used to enter into a relationship—

1. (a) The principal purpose of which is to transfer a thing of value to the recipient to carry out a public purpose of support or stimulation authorized by a law of the United States, rather than to acquire property or services for the Federal Government's direct benefit or use; and

2. (b) In which substantial involvement is not expected between the Federal agency and the recipient when carrying out the activity contemplated by the award.

   (Authority: E.O.s 12549 and 12689; 20 U.S.C. 1082, 1094, 1221e-3 and 3474; and Sec. 2455, Pub. L. 103-355, 108 Stat. 3243 at 3327)