What kind of companies did the u. s government award huge amounts of land and money knowing they would encourage settlement of the west?

Railroad

Explanation:

The construction of railroads was a long and expensive task and therefore banks were reluctant to give them funds. To solve this problem Congress made land grants to private companies. There were many benefits for the railroads as it links the nation in one chain, but the major concern of the government at that time was to encourage settlement in the West and railroads would enhance the mobility of the population.

i think they would live in caves or natural tunnels