Meaning of “federal funds” in the English Dictionary

"federal funds" in Business English

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federal fundsnoun [ plural ]

uk us also fed funds GOVERNMENT, FINANCE

money that the US government makes available for each state to pay for projects or research:

Local taxes fund $4.7 billion of spending on schools, with state and federal funds providing the rest.
Many of the housing projects in the area were built with federal funds and tax credits.
$70,000/$2 million/5.5 billion, etc. in federal funds The national laboratory is spending $60 million this year in federal funds on advanced biodetection systems.
use/receive/lose federal funds The proposal would offer states flexibility in using federal funds to expand health insurance coverage.

in the US, money that banks give to federal reserve banks to lend to other banks who need it:

federal funds (interest) rate The Fed has taken the decision to cut both the discount rate and the federal funds rate a quarter point.

(Definition of “federal funds” from the Cambridge Business English Dictionary © Cambridge University Press)