Federal Grants in 2025
Federal awards will look different in 2025 than they did in 2024. That feels like a safe bet. But just how different is a bit harder to predict.
Federal awards will look different in 2025 than they did in 2024. That feels like a safe bet. But just how different is a bit harder to predict.
This unpredictability can be hard to swallow. In 2016, I worked with a school district to submit a proposal to the Department of Education to focus on addressing educational disparities. The proposal was lengthy, detailed, and innovative. In early 2017, after a White House administration change, we received a notice that the proposal would not be reviewed because funding for the program was not approved. That was the first time I cried about a grant. I cried because I had not warned the client of this potential outcome. To be fair to my younger self, I had not worked through an administration change. (I started grant writing in 2013, and Former President Obama was in office from 2008 until 2016.)
This leads to some practical advice for this transition: Check your NOFO/RFA/instructions package for a notice that warns that funding is contingent upon budget allocation. This advice is also relevant in any year in which we do not have an approved federal budget by October 1. Some competitive funding opportunities have their own funding mechanism and are “safe” during a transition or in a year when a budget is not agreed to. Many, however, are subject to budget approval.
Many organizations are trying to figure out if a grant that opens regularly will open in 2025. That’s a tricky question, made trickier by the President Elect’s public comments.
A bit of cautious optimism
First, the president does not have the authority to eliminate federal departments created by an act of Congress. However, if you’ve followed “defund” movements, you’ll know that defunding agencies have a silencing effect. This plays out in a number of ways: (1) funding is cut, and as a result, funding becomes more difficult/competitive to obtain, and (2) agency staff is cut, resulting in less support to grantees, which can make drawing down funds more difficult.
Second, some level of politicking happens where legislators will say they are for a tightening of public funding. Still, when push comes to shove, they know how detrimental broad defunding will be for their local community. The margins in the House and Senate are tight, and many votes will be close, even to reach 50%. Bipartisan support will be needed to reach the 60% threshold. Advocating with your local officials on the impact of government spending and program cuts can have an impact. Just a few members of Congress can be the difference between funding for a specific program or department.
What can we be doing now?
We know what funding CAN look like. We know climate change, racism, intentional disinvestment in low-income communities, late-stage capitalism, and other deeply entrenched issues in the American experience aren’t going anywhere.
We can use the next four years to prepare. One of the major accomplishments of the Biden administration was funding for climate action, funding air monitoring, pollution reduction, environmental justice, and other climate action priorities. Many communities were ill-prepared to respond to these priorities, partly because funding has not been abundant for these activities in the past and partly because the organizations doing the bulk of this work were not prepared capacity-wise to respond to a federal request for proposals.
We prepare by partnering. True partnership. Partnerships where larger organizations invite smaller organizations to funding opportunities to resource organizations closest to the people intended to be served.
We prepare by better networking with local and regional organizations. We learn who is doing what, who has capacity, who has needs, who is ready, who needs more time but is ready to be involved. We get organized.
We prepare by supporting other nonprofits, small businesses, and leaders. We find ways to build up our community assets that reinvest in our communities.
Am I still talking about grant writing? Well, yes.
I remember in college hearing a beloved professor say, “Show me your budget, and I’ll tell you about your priorities.” Coincidentally, Biden has also used a similar phrase several times. Grants ultimately are about funding, which comes down to budgets. As nonprofits, we can use grants to build capacity at the COMMUNITY level, not just continue our programs, meeting our budgets.
Start small. Identify an underresourced nonprofit your organization relies on to meet the community’s needs fully. You’re a workforce organization that partners with small businesses to place trainees. What do those small businesses need to grow? You’re a healthcare organization that partners with an all-volunteer organization that provides transportation for older adults to your facility. What would help that organization thrive?
Let’s use the fear of funding cuts to double down on building community strength. That we can control.