DEFINITION of 'Grant-In-Aid'. A transfer of money from the federal government to a state government, local government or individual person for the purposes of funding a specific project or program. The federal government gets this money from income tax revenues. Grant money is not a loan, and does not have to be repaid, but it does have to be spent according to the federal government's guidelines for that particular grant.
How did the economy and labor system in Virginia and other southern colonies change? In the Virginia colony, tobacco as a cash crop changed the economic  system by requiring more slaves to meet demand. The economy changed  into a plantation economy where onlâ¦y a few cash crops were grown.  Cotton, sugar cane, tobacco, and rice were the cash crops that  provided the wealth for the southern colonies.
Slaves and indentured servants, although present in the North, were much more important to the South. They were the backbone of the Southern economy. Settlers in the Southern colonies came to America to seek economic prosperity they could not find in Old England. The English countryside provided a grand existence of stately manors and high living. But rural England was full, and by law those great estates could only be passed on to the eldest son.