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.
The Southern Economy Cotton was not the only profitable crop in the South. The Border South and Middle South became increasingly diversified, producing tobacco and grains. Sugar and other crops were grown along with cotton in the Lower South. Despite the belief that slaves were unsuited for factory work, some manufacturing ventures in the South employed slaves.