A provincial grant is funding transferred from a provincial government to a municipality, either for general purposes or targeted programs. Grants may be unconditional (municipalities choose how to spend them) or conditional (tied to specific uses like transit or social housing). Provincial grants help bridge the gap between municipal responsibilities and limited municipal revenue sources. Grant programs vary significantly between provinces, with some providing substantial per capita funding while others offer minimal transfers. Examples include Ontario's Municipal Partnership Fund and Alberta's Municipal Sustainability Initiative. Changes to provincial grant programs significantly impact municipal budgets and service delivery capacity.