The TeX Development Fund was created by the TeX Users Group in 2003, under the aegis of the TUG Technical Council, to aid growth of TeX-related technical projects. We encourage any organization, group, or individual doing TeX-related development work to apply.
The first set of grants was awarded in March 2003, with more grants awarded on a rolling basis after that. See the complete list of recipient projects and list of donors. Thank you, everyone.
If you have questions or suggestions, please email the Development Fund Committee at devfund@tug.org. Currently, the committee consists of Kaja Christiansen, Karl Berry, Jim Hefferon, and Dave Walden.
Finally, let us mention that the Association for Free Software has a grant programme for free software projects, especially ones with a UK focus or from UK developers.