Should you apply for a Federal grant in 2026?
With the rollercoaster that was the Federal grant world in 2025, you may be forgiven for thinking the Federal grants are too volatile to dip your toe into just yet. Last year saw executive orders that paused grant disbursements, tightened grant approvals, and just plain reshaped the process altogether. This was in addition to a government shutdown that led to the suspension and revision of grants, RIF notices, and heightened uncertainty, which impacted state and local governments that rely on federal support for essential services.
In 2026, a more apt analogy for the Federal grant world might be a jungle filled with landmines.
What with abrupt changes in application windows, “trigger” words that can disqualify proposals (and the organizations that submit them), the addition of political appointees to the grant review mix, and many more wild cards, nonprofits face very real challenges in navigating the new (and constantly changing) application processes.
But that doesn’t mean you shouldn’t consider applying.
Federal grants offer considerable resources to organizations that qualify for them, and this can enable nonprofits to enact life-changing impact for their communities.
How do you decide whether these grants are worth your time and position your organization for the application process?
Be on the lookout for “trigger” words that can disqualify your proposal from consideration. These lists of words, while varying from one Federal agency to another, challenge applicants to figure out another way to say a thing rather than using the accepted term. Organizations with DEI-related missions are under particular pressure from the changes, and the leaders of such organizations need to have some hard conversations with their boards to decide whether applying for a particular opportunity will compromise their ethics and values. “What do you do if the language you use to describe the pop you serve is now on the ‘naughty’ list?” Do you change your language or not?” asks Fielding Jezreel, Federal grants expert. “No one can tell you the right answer, but we can say that if you do use that language, you may not get funded.”
Consider the length of time windows between the opening and the closing of grant applications. Where 60 days used to be the standard for open applications, that window is now all over the map. It could be 45 days, or two weeks, or just a few days, depending on what agency is offering the opportunity. This presents a headache for organizations applying for these funds – even those who have been receiving that same grant for many years – because of new requirements and new rules for eligibility. This means cutting and pasting language from a previous grant application won’t work, and puts pressure on organizations to put applications together very quickly with new information. Even if the 60-day window returns, the application process can take longer than that in the face of completely revamped grant guidelines,
Understand that organizations who have never been funded before may be cut out of the new approval framework. Most of the organizations who have been receiving these grants for years will probably be the ones who win them going forward. Smaller nonprofits – the new kids on the block – will have a slim to zero chance of receiving funding. In addition, capacity building will be favored over pilot projects, so if you have a brand-new program that you are seeking funding for, you may want to look elsewhere.
Be aware that priority funding areas for Federal agencies have shifted. This administration’s current priorities include faith-based and religious sector participation; private and public charter schools; AI literacy and AI-related skill development; defense and industrial-base workforce development (for example, shipbuilding); rural communities; reducing regulatory barriers to development; educational governance pluralism and school choice; and civics, Western civilization, and American history; and to name a few.
As a result of all these and other variables, strategic preparation for the Federal grant application process is essential. If you are sure you want to apply, start getting ready for the grant long before it opens. Have conversations within your organization and with your partners now. Once the grant opens, it will be too late.
But there is a bright spot, albeit a contradictory one. Federal grants will be less competitive this year. Since many organizations will decide that the hassles aren’t worth it for them – or because they can’t serve their target population due to new funding restrictions – they will drop out of the running, leaving more opportunity for others.
“The silver lining here is that this is a good time to spend getting ready for Federal grants,” says grantwriting expert and best-selling author Holly Rustick. She emphasizes that it’s best not to even look at Federal opportunities until you have all your application ducks in a row.
In short, Federal grants are not going to disappear. They are an important part of the economy and contribute millions of dollars that can make a big impact in communities. The key is to take the time to position yourself and get your organization ready to apply so that when an application window opens for an opportunity that is a good match for your mission, you can hit the ground running. Even if you don’t want to take that risk now, you may want to consider it in the future.
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Having a Master Grant Application for each of your programs will ensure you have all the necessary pieces in place to tackle the Federal grant application process. A Master Grant Application is a comprehensive outline that provides the basis for every grant application you write, providing a streamlined system for grant writing while answering many questions you may have about putting the application together and what information funders are looking for.
If your nonprofit is on a tight budget, a Master Grant Application will enable you to write your own high-quality grant applications, saving you time and money.
A Master Grant Application:
Is a business plan for your nonprofit
Saves time (and money) on grantwriting
Keeps all your documents and information in one place
Can be customized for grant applications that ask for different information or information in different formats
Helps you get clear about your organization’s mission, goals and objective
Sets up a sustainable funding structure for your nonprofit and keeps you focused on your funding priorities
Can be easily adapted to different programs and initiatives
Forms a foundation for writing your own grant applications without reinventing the wheel with each application opening
Can you afford NOT to have a Master Grant Application?
Book a sales discovery call to learn more.
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