I am a starting PhD student and my advisor got a research grant funded, and I am supposed to do the project. I have been supported by my family in the hope to find funding. well, the professor said that all the money from the research grant went to the department and so I am not getting any. Could that scenario happen? P.S. My adviser is a new assistant professor and she is getting another student in the fall.
Yes. The funding can only be used for the purposes for which it was obtained. Unless the funding explicitly includes a line item to support a student it is unlikely that the money could be used for that purpose.