There is an old and on going scam to steal your money and ID.
You get a call or a letter claiming the government is giving away grant money and you qualify!!!! <---It is a scam!
You are instructed to call a number or visit a website, where you will be asked for credit card info, bank account info, and personal ID info.
They will claim to handle the grant claim for a small fee, or that you must pay taxes on the grant in advance.
You may be instructed to visit a local Walmart, Walgreen, or some store that sells pre-paid credit cards or money cards (common types are called Green-Dot, MoneyPak, and such) or they may say you need to wire transfer cash via Western Union, MoneyGram, or such. The reason they ask you to use these type of money services is because once the transfer is complete, there is no way for you to recover the money you sent.
The only legitimate avenue for government grants is through www.grants.gov which is the official US government web site for grants.
From their FAQ concerning fraud:
http://www.grants.gov/web/grants/support/general-support/grant-fraud.html
Please note the following:
No government grant-making agency will make phone calls; send email or letters to solicit money or personal banking information from a potential grant recipient.
There are no processing fees for federal grants.
Federal grants are not issued for personal use, but are intended for institutions and non-profits to carry out projects with a public purpose.
Know who you're dealing with on the web. Scam artists will often post a website with a name similar to a legitimate site.
If you have provided personal banking information to anyone claiming to be associated with a Federal grant agency, call your bank immediately to prevent unauthorized access to your account.
If you receive a call, mail, email, FAX, or any other form of communication soliciting you for a grant, STOP.
It is a scam.
Report it to the FTC:
http://www.consumer.ftc.gov/articles/0113-government-grant-scams