What is Intergovernmental Revenue?

Intergovernmental revenue is funding received from another government, either in the form of a grant or as reimbursement for costs incurred. The recipients of these funds record them as revenue.

Examples of Intergovernmental Revenue

Here are several examples of intergovernmental revenue arrangements:

Child care funding. The federal government issues funding to state governments to pay for a portion of the child care costs of lower-income taxpayers.
Education funding. The federal government issues education-related funding to state governments for further distribution at the local level.
Highway tax receipts. A state government shares a portion of its highway tax receipts with the county and municipal governments within its boundaries.