Streamlining the Federal Grant Process to Empower Small Communities
By: USDR Grants Team
Grants to US communities have increased 93 percent from 2008–2020, with the Federal government investing billions each year in infrastructure, healthcare, and education projects directly in local communities. Trillions more dollars in grant opportunities have also been made available through the recently passed Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors and Science (CHIPS).
But more dollars has not meant more equity among communities receiving funds. U.S. Digital Response’s (USDR) new study, No Front Door: Barriers to Access for Small Communities Seeking Federal Grants, finds far too many small communities opt out of applying because of challenges in the grant process itself. Their “grant-seeking journey” — identifying, applying for, and reporting on government grants — is complex and burdensome in ways often invisible to the federal agencies that provide these funds.
Small communities and businesses are frustrated when there is no ‘front door’… They need an easy way to navigate to opportunities available to them.
– Midwest Director, National Small Business Advocacy Organization
Our interviews with organizations representing over 350 local governments in every geographic region of the United States revealed opportunities to expand grant access through transparency, simplicity, and ease of use. When we understand small communities’ journeys, we can open doors to critical resources.
Below are our key recommendations for both small communities and the federal government:
Clarify and communicate: Increase opportunities for interaction, feedback, and Q&A sessions between grant seekers and federal grantmakers. Consider liaisons specializing in funding opportunities who can provide valuable guidance on the likelihood of success for each grant.
150 page NOFOs (Notices of Funding Opportunity) are just too much for small communities to handle, when there is only one person to review them and do a cost-benefit analysis on whether it’s worth applying for.
Right-size and rationalize: Develop “T-Shirt” models for grant programs tailored to each community’s size and risk profile. Grant seekers often waste time pursuing grants targeted towards larger communities; grants sized to fit will ensure their time is focused on the grants they can win. Additionally, consider focusing funding on intermediaries (e.g., regional government collaboratives) that could be key in providing technical assistance and fostering collaborations among regional stakeholders.
One idea might be to leverage a concept for grantseeking that is similar to the Defense Procurement Technical Assistance Centers, which provide services to local businesses who want to contract with the government.
Simplify and streamline: Create a modular common application that pre-fills relevant fields with data, allowing applicants to assess their fit and guide outcomes. By pre-filling applications with Census and agency data on needs and performance measures, a common application could facilitate pre-qualification and promptly notify ineligible applicants. Simplifying extensive applications would encourage more small towns to apply and access resources where they are most needed.
If thousands of universities can collaborate and unify around a single Common Application, certainly government agencies can do so as well.
Why is streamlining the Federal grants for small communities such an urgent need?
An Ohio transportation director from a rural community said it best:
Gosh, I mean, I could, I could spend my entire life applying for grants that we could make a legitimate claim to.
And, you know, we’ve gone through the hassle fewer than five times.
- Director, Small Town Transportation Department
Studies show that small communities largely don’t apply for federal funding because they lack the capacity: mayors are part-time, administration is non-existent. The Department of Treasury has used a version of the “T-shirt” approach that shows promise in boosting utilization of grant funds in small cities and towns. Under the American Rescue Plan, both small and large counties were provided stimulus funding. Larger counties were required to complete complex reporting each quarter. Smaller counties receiving less than $10 million were permitted to report less data and do it less often. Data released in March 2023 shows that the smaller counties have spent 44.7% of their relief funding; larger counties have spent only about 31.5% of their funding available, a difference of 13.4%.
What does this mean to people on Main Street?
With lower administrative burdens, relief flows to people in need, when they need it — not years after the crisis has passed. We need more grant funding models built for smaller communities that assure that grant funding flows at the speed of need: to the right people, in the right place, at the right time, with reporting tools that are simple and easy-to-use.
Need help?
U.S. Digital Response has a team of pro bono professionals ready to help governments and NGOs respond to the critical needs of their communities. Need help? Fill out this brief intake form to connect with USDR, and we’ll be in touch quickly.
