In September 1993, Georgia instituted a lottery-funded college scholarship for the purpose of "Helping Outstanding Pupils Educationally" (HOPE). Since then, over $3.61 billion has been distributed to over 1 million students through the HOPE Scholarship, making it the largest state-financed, merit-based aid program in the US.  President Clinton designated it as the model for the federal HOPE tuition tax credit, and over fifteen states have established similar versions of the scholarship program. 

There are two separate components of the HOPE program,  the merit-based scholarship and the HOPE Grant. Eligibility for the former depends on a student's high-school grade-point average, while the latter applies to non-degree programs at technical schools and has no merit requirements. An income cap of $66,000 was imposed in the first year of the program.  The cap was raised to $100,000 the following year and eliminated entirely thereafter. 

To qualify for the scholarship, an entering freshman must have graduated from an eligible Georgia high school since 1993 with at least a "B" (3.0 grade-point) average and be a Georgia resident. For HOPE Scholars in degree-granting public institutions, the program covers tuition, HOPE-approved mandatory fees and a book allowance. The value of the award is about $5000 for the 2006-07 academic year. HOPE Scholars in private, degree-granting institutions  receive a standard award of $3000 per academic year toward tuition. To retain their scholarships, students must maintain a 3.0 grade-point average while in college.

In contrast, the HOPE Grant is essentially an entitlement. Qualification does not depend on high-school grade-point average. There are no restrictions based on when a student graduated from high school. Even students who graduated before 1993 are eligible as long as they meet the Georgia residency requirements. The grant covers tuition and HOPE-approved mandatory fees and students may receive it for all coursework required by the institution for a program of study leading to a certificate or diploma. Continued support under the grant is contingent on a student's satisfactory academic performance, which is determined by the individual institution.

The HOPE Scholarship is funded entirely by revenue from the Georgia lottery, administered by the Georgia Lottery Corporation. This corporation is legally required to allocate 51 percent of its revenues to players in winnings and 35 percent of its revenue to education. The remaining 14 percent is split between retailers and operating expenses. 

The Georgia Student Finance Commission publishes the details regarding the rules governing scholarship eligibility and retention, as well as the latest cumulative statistics on HOPE award distribution.
http://www.gsfc.org

The Georgia Lottery Corporation provides an overview of all of the programs supported by lottery proceeds.
http://www.galottery.com