Appreciate the response, perhaps some more facts will clarify:

Grant funds were disbursed monthly, grantee submitted invoices for reimbursement of labor/hrs spent doing research, interviews, expenses (office space rent, software subscriptions, office supplies). Total labor and expenses equaled total amount of grant.

Grantee created and maintains ownership of pod cast.

Grantee is self-employed freelance journalist. Wouldn't total amount received on 1099-G be reported on Sch C, with expenses deducted. Net amount of grant $$ subject to SE tax as well as income tax.