How Federal Grant Funding Priorities May Change Now

There has been lots of musing by the media and others about what will change under the new administration. I’ll now join the chorus to point out that federal grant funding priorities will likely change under the re-elected president’s administration.

I’ll start by noting that these are just my initial thoughts so I’m narrowly focusing on the billions of dollars in federal grants that have been authorized by the previous administration over the past 3-4 years from three landmark laws: (1) the American Rescue Plan Act (ARPA), (2) the Inflation Reduction Act (IRA), and (3) the Infrastructure Investment and Jobs Act (IIJA aka the Bipartisan Infrastructure Law (BIL).

I’m starting here because revisiting some of the outgoing administration’s funding priorities help with my initial compare and contrast exercise.

American Rescue Plan Act of 2021

The behemoth that is the American Rescue Plan Act of 2021 was signed by the outgoing president on March 11, 2021. It provided support for college students, foreclosure protections, homelessness, rural housing, childcare assistance, home heating and cooling costs, additional AmeriCorps funding, billions for Native American health and education improvements, $350+ billions in funding to state and local government agencies, and so much more.

Grants authorized by ARPA include:

1. Community-Based Child Abuse Prevention (U.S. Department of Health & Human Services)
2. Build Back Better Regional Challenge (U.S. Department of Commerce)
3. Survivor Support and Prevention Grant (U.S. Department of Justice)
4. Enhanced Mobility of Seniors and Individuals with Disabilities Formula Grant Program (U.S. Department of Transportation)

Grants Works also hosted several webinars about ARPA, specifically about the State and Local Fiscal Recovery Fund (SLFRF) because we understood the impact this funding would provide “on the ground.” Note: SLFRF funding must be fully obligated by December 31, 2024.

To learn more about just how far-reaching the funding from ARPA is and has been, check out the March 8, 2021 policy brief from Independent Sector.

What may change under the new administration?

Because ARPA provided funding in the form of grants and other federal funding mechanisms across so many areas of American life and because it was passed as an avenue to boost the economy after the pandemic, a comparison in this instance is futile in my opinion. However, since no one in the incoming administration’s party voted for ARPA in the Senate or House because they saw it as wasteful, one may be able to draw a conclusion on whether a similar law authorizing such overarching funding would be passed by the incoming administration.

Infrastructure Investment and Jobs Act (aka the Bipartisan Infrastructure Law)

The IIJA aka BIL was signed on November 15, 2021. This was the law that was consistently described as “unprecedented.”

Why was it considered unprecedented?

$973 billion from 2022 to 2026—of which $550 billion was for new investments for “all modes of transportation, water, power and energy, environmental remediation, public lands, broadband, and resilience.”

It’s also been described as “the most comprehensive infrastructure law passed by Congress in decades.” I was so fascinated by this funding that I hosted several webinars and wrote my first blog about it on August 15, 2022. You can read my blog here on the Grants Works website.

Grants authorized by the IIJA (BIL) include:

1. Weatherization Assistance Program
2. Battery Manufacturing and Recycling Grants
3. Energy Auditor Training Grant Program
4. Grants for Energy Efficient and Renewable Energy Improvements at Public School Facilities

What may change under the new administration?

Taking a cue from Grant Watch, it is projected that this administration may expand funding for infrastructure projects even though only 13 members of the incoming administration’s party in the House and 19 in the Senate voted for the IIJA in 2021.

However, the IIJA also funded many environmental remediation and clean energy projects and it is expected that these funding priorities may shift under the incoming administration.

Inflation Reduction Act of 2022

The IRA was signed on August 16, 2022 and it was described by the outgoing administration as a “promise to build an economy that works for working families.” It awarded federal financial assistance in the form of grants, tax credits, and more.

IRA was written with the stated goals of reducing the federal deficit, lowering the costs for prescription drugs, health care and energy, and making significant investments in clean energy and environmental programs.

Grants authorized by the IRA include:

1. USDA Rural Development (U.S. Department of Agriculture)
2. Neighborhood Access and Equity Grant Program (U.S. Department of Transportation)
3. NOAA Climate Resilience Regional Challenge (U.S. Department of Commerce)
4. Tribal Drought Relief (U.S. Department of Housing and Urban Development)
5. Environmental and Climate Justice Community Change Grants (U.S. Environmental Protection Agency)

What may change under the new administration?

These funding priorities may shift under the incoming administration. Every representative from the incoming administration’s party voted against the IRA and I learned as I was writing this newsletter that they have tried to repeal it 54 times.

Looking back to understand what lies ahead

I fell into government grant management in 2006. I went from calculating costs and paper pushing to really digging into the laws that authorized federal grant funding such as the HEARTH Act of 2009.

I observed how organizations use federal grants to directly and positively impact people’s lives. This experience is possibly why I was so fascinated by these laws and the flood of funding they provided. Yes, I also thought about the “how” and “how long” of these funds.

To simultaneously satisfy my curiosity and share what I learned, I hosted several webinars on the federal grants authorized by these laws. For example, on November 16, 2022, I hosted a webinar titled EVs, Clean Energy, EE and Workforce Development: Let’s Explore Grant Funding from the IRA and BIL and on August 16, 2022 I hosted Let’s Explore the Infrastructure Investment and Jobs Act and Build.gov. ?

Grants Works also hosted an in-person summit in March 2024 in Atlanta, GA that focused on the wave of funding being awarded from these laws and how communities should boost their knowledge of federal grants and their capacity to win and keep these grants.

I look forward to observing and helping our clients adapt to the shifts in federal grant funding priorities.

One of my final two scheduled webinars is coming up on Thursday, November 14, 2024 at 12:00pm. Join me for There Is No “I” In Federal Grants: Developing A Collaborative and Effective Approach to Your Federal Grants Management Process. To easily register, click here.