Federal/State Partnership's budget is a line item in the NEH federal allocation. It is dispersed to the state humanities councils as general operating support grants in accordance with a legislatively mandated funding formula.
The Chairman's Discretionary Fund is used to purchase the general liability insurance  policies for the councils and to provide travel subsidies to enable new council board members to attend the Federal/State Partnership Orientation Session at the annual Humanities Conference sponsored by the Federation of State Humanities Councils. In years when an orientation session is held at NEH for new executive directors, the Chairman's Discretionary Fund is used to support that meeting and the executives' travel to it. This fund is also used to provide additional services to state humanities councils as needed.
State humanities councils may apply for any grants  offered by the National Endowment for the Humanities.
The major documents to assist state humanities councils to manage their NEH general operating support grants are attached to this article. For all the materials for grant management for state humanities councils, go to the section of this website which has guidelines for policies only applicable to state humanities councils .