A conditional grant is funding from a senior government that must be used for specified purposes, as opposed to unconditional grants that recipients can spend according to local priorities. Conditions may specify project types, timelines, matching requirements, reporting obligations, and accountability measures. Most federal and provincial grants to municipalities are conditional—infrastructure funding for specific project categories, program funding with service delivery requirements, or capital grants for approved projects. While conditions provide accountability for public funds and advance funder priorities, they limit municipal flexibility and can shape local decisions toward what attracts grants rather than what communities most need.