With the recent election results signaling a return to policy priorities resembling those from 2016, many grant managers and organizations are assessing how federal funding strategies could shift. Drawing from the themes of the previous administration’s first term, this analysis provides insight into the sectors likely to be impacted and strategies for adapting to these changes.

Reflecting on 2016-2020: Key Funding Trends and Priorities

The 2016-2020 term saw several defining shifts in federal funding priorities, which may serve as indicators of what could follow in the coming term. Some of the areas previously emphasized include:

• Infrastructure and Defense: Prioritizing physical infrastructure and defense spending, this period saw notable increases in grant opportunities for construction, infrastructure enhancement, and military-related research and development. Programs focused on public safety, technology modernization for defense, and national infrastructure projects were supported under this agenda.

  
  

• Health and Human Services Adjustments: Funding priorities in healthcare saw significant changes, with adjustments to programs under the Department of Health and Human Services. There was an emphasis on reducing federal spending in some public health areas, while private and state-level partnerships were encouraged. Agencies had to adapt by finding alternative funding avenues for some public health programs, while federal funding focused more on specific priorities, like veterans' health initiatives.

  
  

• Environmental Funding Reallocations: There was a marked reduction in federal spending on climate-related programs, and organizations previously relying on environmental and sustainability grants had to adapt to lower funding levels or shift focus toward energy infrastructure and private sector partnerships. Programs under the Environmental Protection Agency (EPA) saw realignments, with a shift toward deregulatory efforts and funding reallocations away from climate initiatives.

  
  

What This Election Could Mean for Federal Grant Funding

Based on these past trends, several areas may see continued or renewed attention:

1. Emphasis on National Security and Defense: Given the emphasis in 2016 on defense, national security spending could increase, particularly in grants related to homeland security, cybersecurity, and defense technology. Grant managers focused on these fields should prepare for potential growth in funding opportunities, while others may need to consider the implications of tighter funding in non-defense areas.

   
   

2. Infrastructure Development: Infrastructure remains a bipartisan priority, but with a possible emphasis on hard infrastructure projects like roads, bridges, and telecommunications. Funding may be directed towards large-scale projects that drive economic growth, especially in areas prioritized for job creation.

   
   

3. Public Health Programs and Federal Spending Adjustments: Organizations relying on federal public health grants may experience shifts, with potential decreases in certain areas. Adaptations in healthcare grants could mirror past cycles, emphasizing block grants and state-level funding over federal programs.

   
   

4. Environmental and Regulatory Funding: Environmental programs may see funding realigned towards efficiency and cost-effective solutions, potentially with a focus on infrastructure rather than climate-specific initiatives. Organizations in the environmental sector should consider private partnerships to support sustainability initiatives if federal grants shift away from direct climate action funding.

   
   

How Organizations Can Strategize for Potential Funding Shifts

As these potential priorities take shape, here are strategies to navigate the changing landscape:

• Diversify Funding Sources: Organizations that rely on specific federal grants should explore alternative funding streams to mitigate risk. Partnering with state and local agencies, as well as private sector stakeholders, can help bridge gaps in federal funding.

  
  

• Prepare for Compliance Adjustments: With each shift in administration, compliance requirements can change. Investing in strong internal controls and ensuring readiness for new compliance standards will help organizations adapt quickly.

  
  

• Stay Engaged and Informed: Staying engaged with legislative updates and potential policy changes will give your organization an advantage in anticipating shifts and responding accordingly.

  
  

FEDgrant Solutions: Helping You Adapt to Shifts in Federal Funding

As we move forward, FEDgrant Solutions is committed to providing expert guidance on navigating the evolving federal grants landscape. Reach out to our team for insights on compliance, funding strategies, and resources to ensure your organization’s success amid these changes.