A grant of Federal funds to a public or private agency or organization for a specified purpose authorized by law, such as development of an emergency medical services system, or conduct of a continuing education program. The making of project grants is usually discretionary with HEW. Applicants are chosen on the basis of merit, often competitively, and the amount of the grant is based on need (the estimated cost of achieving the purpose); all of which contrasts with the usual practice with formula grants.