The Land Grant Alliance (LGA) reports that, although federal land grants are no longer available, municipal grants are. According to the organization, cities across the United States have free land grants available in exchange for citizens relocating to that city area. One advantage of obtaining a free land grant is that you can build a house on the plot.
The LGA suggests searching the Internet using keywords "free residential lots" and "free commercial lots." This should identify the cities offering the land grants. Typically, according to the LGA, these cities have decreasing populations and want to regenerate their economies. Most of them are in the Midwest.
The LGA suggests that once you have identified a city with land grants, visit it several times before making an application. It is wise to investigate why a city is giving out free land grants, as there is usually a reason for large numbers of people leaving, such as high unemployment or crime. Also, check the land grant contract for specifications such as house size and when you are expected to move in.