The purpose of this study was to determine the efficacy of a policy of targeted grant funding, via the North Carolina Eat Smart, Move More Community Grants program, for the implementation of multilevel community interventions to increase the physical activity of youth. Community grantees were matched with non-grantees to test changes pre- and post-intervention in levels of objectively measured physical activity. Qualitative interviews of grantees were conducted to assess implementation facilitators and barriers.