Abstract: To enhance the availability of grassland ecology protection policy, we investigated the effects and problems of“subsidy and award”since its implementation in China. Taking the population of 268 husbandry counties and semi-husbandry counties, the overloading rate of livestock and the net income of farmers and herdsmen as the study objects, we used the BGLI model to calculate the change of grassland overloading since the implementation of“subsidy and award”. The results showed that the“subsidy and award”policy had a good effect on changing the whole country''s overload situation. It increased the net income and population in husbandry counties and semi- husbandry counties and positive effects were more outstanding in semihusbandry counties. On the whole, herdsmen were satisfied with this policy. However, the fixed subsidy standard partly caused poor efficiency and unsatisfied effect. So, we suggest that the government should establish a database to implement“precise grazing.”We also put forward that the herdsmen should firstly reduce livestock and then the government gives them awards, the awards are different according to the degree of overloading and the practice among herdsmen, and middle and small herdsmen are the subject of subsidy.