The state government passes a law requiring localities to upgrade their water treatment facilities. The state then awards a grant of $500,000 to the Town of Midlothian to help pay for this cost. What type of revenue is this grant

Pass through funding

Explanation:

these grants are given by national government to local government for the planning, development and implementation of the projects and activities that will improve the standard of living of the citizens. $500 000 will be used to upgrade the water treatment facilities which will benefit the lives of the end users, being the locals of Midlothian. This may also be regarded as a subsidy where the state pays a portion of the cost in an attempt to assist the end user by lessening the cost of the good/service. Pass through grant is one of the four types of grants issues by government.

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