Yes, it is taxable income as stated this State of Oregon posted link. In an earlier answer I gave, I did not research this site and I do apologize for all the conflicting answers you have received.
The IRS mandates that some grants are taxable and this is one that is. Please select the link i included and scroll to the section that says Are these Funds Taxable and then select the plus sign. This will give you your answer.
I realize this isn't encouraging news but the information is correct as stated.
@Hollynatel
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