We analyze the strategic considerations inherent in legislative subsidies and develop an informational lobbying model with costly policy reforms. In contrast to other models of informational lobbying we focus on the implications of a policymaker's and a lobby's resource constraints for lobbying activities. We allow both a policymaker and a lobby to gather information, and each can either fund or subsidize policy making. Our analysis highlights that legislative subsidies are both chosen strategically by lobbyists, and strategically induced by policymakers, dependent upon the circumstances. These involve which resource constraints bind, the policymaker's prior beliefs, the salience of policy, and the policymaker's and lobby's expertise in information gathering. We also illustrate when an interest group may lobby a friendly, opposing, or undecided policymaker. Furthermore, we explain how an interest group may strategically waste resources and when informational lobbying and transfers are complements, substitutes, or independent.