Only just noticing this one today and found it odd there weren't any updates on the AdWords blog.
$2 CPC no longer applies to Google Grant accounts, but you need to set bidding to optimise for conversions. A few other changes too - min 5% CTR, must geo target, min QS3 for keywords, etc.
What's irked me about this is we're running an account for free for a small local charity - the account got suspended a couple of weeks ago (there was a notification but sent to the charity's email which never made its way to my inbox...). I spent an hour on the phone with Google support (going through the account keyword by keyword...) and he didn't mention once that these changes had just rolled out and were the cause of the suspension.
Bit of a communication fail from Google, but interesting changes nonetheless as the $2 cap was pretty restrictive.
