That question exposes a seam many of us were never taught to see.
The issue isn’t with Scripture, it is with how narrowly grace is sometimes defined.
Grace Is Not Defined by the Recipient
In Scripture, grace does not originate in human need; it originates in God's character.
God describes Himself as “merciful and gracious” (Exodus 34:6). Grace belongs to who God is before it ever describes what we lack. When John says that Jesus is “full of grace and truth,” he is not saying Jesus needed grace; he is saying that God's gracious character is fully present and active in Him.
Grace is something Christ possesses and dispenses. It is not something He requires.
“From his fullness we have all received, grace upon grace.” (John 1:16)
Grace flows from Christ, not to Christ.
Where “Unmerited Favor” Fits
Scripture does describe grace as unearned, but it is always from the perspective of the recipient.
Paul is clear:
“If it is by grace, it is no longer on the basis of works.” (Romans 11:6)
Grace is unmerited for us because we are undeserving recipients, not because grace itself is defined by unworthiness. Christ, by contrast, is repeatedly described as sinless, faithful, and worthy (Hebrews 4:15; Revelation 5:12).
So the seam is this:
Grace describes God's giving. Unmerited describes our receiving. Once that distinction is made, the tension disappears.
Grace Does More Than Forgive
Scripture also refuses to limit grace to pardon alone. Grace forgives. However, it also acts, empowers, and transforms.
Paul can say: “By the grace of God I am what I am… yet not I, but the grace of God that was with me.” (1 Corinthians 15:10).
And again: “My grace is sufficient for you, for my power is made perfect in weakness.” (2 Corinthians 12:9).
Grace does not merely excuse failure; it supplies strength.
This is why grace can be both:
God’s free gift apart from works and
God’s empowering presence that produces obedience.
There is no contradiction: Scripture places empowerment after gift, not instead of it.
A Fuller Picture of Grace
When Scripture is allowed to speak on its own terms, grace comes into focus:
Grace is God’s freely given favor, flowing from His own character, that restores relationship with Him and actively empowers people to live out what He calls them to do. It is apart from merit, yet producing real transformation.
Christ is full of grace because grace originates in Him.
We receive grace as unmerited favor because we are not its source.
That’s the missing seam; and once it’s seen, the whole cloth holds together.

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