Applying for federal grants can be a “mind-numbing process” that discourages many city leaders — especially those from small and under-resourced cities and towns — from accessing needed funding opportunities, Kenneth Megan, federal policy director for the advocacy group Results for America, said last week during a National League of Cities’ Congressional City Conference panel calling for legislation that would reform grant application processes.
Federal grants help cities repair roads and bridges, support housing construction, and improve public safety and resilience, among a host of other benefits, Megan said.
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The 2021 Infrastructure Investment and Jobs Act, the 2022 Inflation Reduction Act and pandemic relief funding, including $350 billion in state and local fiscal recovery funds included in the 2021 American Rescue Plan, provided historic levels of funding for “cities to transform their communities,” Megan said.
But applying for a federal grant can be complex and confusing, especially for small communities with limited staff, Megan said. Sesser, Illinois, Mayor Jason Ashmore said he often uses a dictionary to help understand the technical jargon in funding notices while he and his small team work on applications.
Notices of funding opportunities — the federal government’s announcements that cities and other entities can apply for grant funds — are often long, complex and filled with technical terminology and complicated eligibility criteria, Megan said.
That creates inequities because larger cities often have entire teams, including full-time grant managers, dedicated to pursuing federal funding and can hire outside consultants to help, he said. Smaller towns, meanwhile, may rely on volunteers or a council member who has a full-time job.
“When the process becomes too complex or too time-consuming, then many communities just decide not to apply,” said Megan. “That means federal dollars don’t reach the places that need it the most.”
Cities can give themselves a leg up in the grant application process by building connections, hiring a lobbyist, preparing before the funding opportunity is released and being intentional with what they apply for, city officials on the panel said.
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Leaders from the NLC and Results for America backed the bipartisan Streamlining Federal Grants Act, a U.S. Senate bill that would require federal agencies to simplify their grant application processes by making notices shorter and easier to understand. The legislation was introduced in 2023 but stalled in the Senate. It was reintroduced this year by Senators Gary Peters, D-Mich., and James Lankford, R-Okla.
The bill would also improve the user experience for applicants with updated grant-management software systems and common data standards for grant reporting. It would require federal officials to consult with local governments throughout these streamlining efforts.
Giving city officials a “seat at the table” when reforming the process would allow them to communicate their needs and frustrations to federal officials, said Ashmore.
Challenges for smaller communities
Cities often struggle to understand which grant opportunities they are most competitive for because it’s hard to find them all in one place to compare, said Ashland, Oregon, Mayor Tonya Graham. As a result, many communities apply for grants that may not be the best ones for them, she said.
Some cities are also afraid of winning a grant opportunity because they don’t have the staff needed to execute the grant properly and risk having to return the money because they did something wrong — a prospect that could tank their budget or even bankrupt them, said Graham.
Any reforms to the process should include separate funding opportunities for smaller communities so they don’t have to compete against larger, more-resourced cities, said Graham.
Federal agencies overseeing the grant programs should also provide consistent contacts, said Daphnee Sainvil, intergovernmental affairs division manager for Fort Lauderdale, Florida. Fort Lauderdale has received inconsistent answers to application requirement questions due to turnover, she said.
How to make applications more competitive
Before applying for a grant, city leaders should build connections with their elected officials, various agencies and other municipal officials through the NLC, said Ashmore. Those connections could help elevate their application over another, he said.
If they can, cities should also hire a lobbyist to help form relationships and even fill out the applications in a way that improves their chances for approval, Sainvil added. Engineers often can’t tell a story about why money is needed the way a lobbyist can, she said.
Preparation is also important, Sainvil said. City staff should develop a template for grant applications in advance that they can tweak once it comes out, she said.
Lastly, cities should spend extra time making sure they are applying for a grant they are the most competitive for, said Graham.
“If you know that you only have the capacity to accept two grants, be very intentional about the grants that you are applying for,” said Sainvil.