Once a reliable mainstay of programmatic and research support for health and human service nonprofits, federal grants have become a wild game of bureaucratic whack-a-mole. It’s a mind-bending, bewildering, maddening landscape, leaving many of us in the grants management sector wondering how the once-calm sea of federal funding has become a tsunami filled with chaos, confusion and panic.
How Did We Get Here?
Political Appointees Now Review Every Grant Application
One of the biggest changes is that political appointees now review all grant applications for alignment with “agency priorities” and the “national interest.” One might reasonably ask whether this wasn’t already the case when professional agency staff and peer reviewers assessed applications against the criteria of the Notification of Funding Opportunity (NOFO) and the needs specific to the area or populations being served.
Historically, experts — the people who actually understand the issues within the health and human services sector — evaluated grant applications. Today, the question isn’t whether a proposal will serve communities or people; it’s whether it serves the Administration’s agenda.
Executive Orders Chaotically Paused Trillions in Federal Grant Awards
Nearly a year ago, federal grantmaking came to a screeching halt when a series of Executive Orders paused trillions of dollars in grant awards on suspicion that DEI (Diversity, Equity, and Inclusion) efforts might be included in grant activities. This vague concept – with no standard definition or widespread understanding – triggered sweeping funding freezes affecting communities, health programs, and entitlement benefits nationwide, virtually every corner of life (see our policy brief, “Funding Freezes: Understanding How Supreme Court Decisions and Congressional Actions are Reshaping Nonprofit Funding,” for more details).
Massive Program Cuts and Rescinded Grant Awards
After the blizzard of executive orders, a series of cuts and claw-backs affected countless programs under the purview the U.S. Department of Health and Human Services, including:
- A nearly $10 billion reduction in social services, cash aid and childcare programs in five Democratic-led states.
- Seven grants to the American Academy of Pediatrics were eliminated, reducing millions of dollars of funding for initiatives related to sudden infant death, fetal alcohol syndrome, early autism identification and adolescent health.
- $11.4 billion of Centers for Disease Control and Prevention (CDC) funds earmarked for state-led public health data surveillance and chronic disease study was cancelled (see our podcast and blog about disappearing federal public health data for an in-depth analysis).
In addition, hundreds of thousands of skilled federal employee positions were eliminated, including 2,400 at the CDC along with a 54 percent budget decrease.
The fallout extends to state and local health departments and nonprofit organizations, which are reeling as billions of dollars disappear from programs designed to keep Americans healthy.
Are Federal Grants Gone for Good?
No. Despite delays, inconsistencies, and additional layers of documentation or review, federal grants are still being issued. Opportunities are published on Grants.gov, and the daily email notices continue to go out. But, be warned that any grant can be rescinded without warning if deemed to be “misaligned” with constantly shifting federal policy priorities.
Should We Stop Applying for Federal Grants?
Absolutely not. Grant-seeking organizations, big and small, should continue applying. Here’s why:
- Muscle Memory Matters – If organizations stop writing grants, staff will lose the competitive edge needed to submit successful applications.
- Not All Programs Are Equally Affected – Some agencies and programs remain relatively stable, and competitive grants continue to be awarded.
- The Landscape Will Shift Again – Federal priorities and administrations change. When stability returns to the federal grant ecosystem, your organization should be ready – not scrambling to re-learn how to write a federal grant.
- Career Staff Endure – Most program and grants management staff work through multiple political cycles. Building relationships with these federal employees now improves your application’s chances in the future.
Be sure to visit our Knowledge Hub for access to free resources, including podcasts, policy briefs, webinars, toolkits and templates designed to help health and human services providers, government agencies, advocates and philanthropies achieve lasting community change.
Kate McNulty, MA, CHC, serves as a Principal at Atrómitos, providing our clients with decades of experience in grant writing and management, as well as strategic fund development.