September 4, 2025

Information Sharing on Federal Funding: Update September 5, 2025

As we move toward the final quarter of 2025, the federal grant landscape remains volatile with executive actions, legal challenges, and growing tensions over how public funds are administered. At The Grant Plant, we continue to monitor these developments closely and share timely updates to help our partners stay prepared.

In our last article, we discussed the implications of EO 14332, “Improving Oversight of Federal Grantmaking.” While the president has significant influence on public policy and resultant grant funding, ultimately, the power of the purse lies with Congress. A recent article by Matt Watkins of Watkins Public Affairs, “Wait, Can He Do That? A Plain Language Guide to Federal Funding and Appropriations in 2025,” (published in LinkedIn) adroitly states: “But what is really at stake here is simple: who decides what America funds, and whether communities can count on that promise once it is made.”

When promised federal funds are frozen or canceled, the impact is immediate: staff positions are eliminated, and services are paused or reduced. This year, we’ve seen numerous programs gutted mid-cycle because of the administration’s decisions, made after Congress had already approved the funding and it’s been signed into law. We’ve spent countless hours discussing what this means for our clients and a few things are certain:

  • Being awarded a grant is no longer a guarantee that the funds will flow. While it has always been important to ensure compliance with award requirements, it is even more essential now to avoid a triggering event that could cause a freeze of your funding.*
  • Drawdowns and reimbursements may be delayed even after funds are obligated. Agencies under freeze directives, reductions in force, or administrative hold-ups may be slow to process disbursement requests.
  • Legal and administrative uncertainty is becoming the norm. Court interventions are helping to restore some funds, but the instability in the meantime will affect some organizations’ ability to operate.

A recent article from KFF highlighted interesting research that compared states that sued over Federal claw backs compared to those that did not. The grants under question were issued under Covid-era funding, but intended for broader purposes, such as public health infrastructure and disease control. The study found that states that sued over the grant cancellations had nearly 80% of funding restored, compared to 5% in states that did not. This disproportionately impacted “red” states who largely opted not to sue to reinstate the funding, and thus lost the bulk of that Federal funding, amounting to millions. Regardless of political leanings, this is a useful study to illustrate the tangible value of legal and policy advocacy in protecting Federal grant funding and a reminder that proactive action can significantly influence outcomes for communities relying on these resources.

Just Security is maintaining a public resource to monitor and track litigation related to Executive Orders, ban on DEI, funding pauses/freezes, and more.

Regarding specific programs we are following:

AmeriCorps

While a federal court has blocked the administration’s attempt to cancel funding and dismantle the organization, the president’s FY26 budget request proposes a drastic reduction in funding for AmeriCorps, ultimately designed to shut down the program. The request includes only $107.7 million, representing a more than $1.15 billion decrease from the previous year. This funding is explicitly designated for the “orderly shutdown” of AmeriCorps operations and its national service initiatives.

The potential closure hits close to home for many of us at TGP. AmeriCorps has been a launchpad for careers in public service, including for members of our own team, and has been a program for which we frequently wrote grants to fund programs that support community wellbeing in a myriad of ways. Beyond personal ties, we are following its proposed closure as it could signal a broader trend in the administration’s dismantling of community-based federal programs.

However, in stark contrast to the president’s proposed budget, the Senate Appropriations Committee, in its bipartisan FY 2026 markup, has proposed $1.25 billion in level funding for AmeriCorps—supporting State & National, VISTA, NCCC, AmeriCorps Seniors, Days of Service, and more.

If fully funded, AmeriCorps will continue to:

  • Enable over 200,000 members annually to serve communities across areas like education, disaster recovery, veterans support, and environmental stewardship while gaining job experience and career skills.
  • Support smaller nonprofits, schools, and local agencies that rely on AmeriCorps for core programs like tutoring, home rehabilitation, and senior mentoring (to name a few). These programs are otherwise in jeopardy.
  • Facilitate access to college and launch careers in service through AmeriCorps’ education awards and service stipends. Their elimination would undermine affordable access to higher education and deter future service engagement.

Finally, AmeriCorps has lost 90 percent of its staff due to DOGE Reductions in Force. According to the Office of the Inspector General, with few staff remaining and resources being eliminated, AmeriCorps is vulnerable to fraud, abuse, and cybersecurity lapses—deeply concerning given the volume of personal data and funds involved. There are now just six employees managing the cyber and data infrastructure for over 1 million former AmeriCorps members (down from 36 staff plus contractors), and a skeleton crew serving as program managers—almost 2,000 current grants are assigned to a program officer that no longer works for the agency.

For the AmeriCorps program to survive, it is critical that Congress intervenes and passes the bipartisan proposal.

Resource: Voices for Service has an Advocate’s Guide to AmeriCorps and includes concrete actions that can help you advocate for the program.

Other Programs at Risk

As widely reported on, the current administration appears especially critical of programs that are:

  • Discretionary (vs. mandatory entitlement programs)
  • Locally implemented with federal funding
  • Connected to public service, equity goals, or community-based delivery
  • Rely on nonprofits or public-private partnerships for outcomes
  • Emphasize social determinants (education, housing, access to care)

In addition to AmeriCorps, other programs to watch are Head Start/Early Head Start, Community Development Block Grants (CDBG), Community Services Block Grants (CSBG), and 21st Century Community Learning Centers, as examples. While the administration frames these as “woke” programs, it’s important to clarify what these programs actually do and who they serve. For example, they provide childcare for working parents, support young adults gaining career experience, provide afterschool tutoring, help local nonprofits deliver everything from utility assistance to senior services, and ensure children get a solid start in life by screening for developmental disabilities and supporting new parents. Labeling them as “radical” because they support equity or community engagement distracts from the fact that many of these initiatives were created or expanded under bipartisan legislation, with broad public support. While they may include components that emphasize inclusion, access, or climate resilience, that reflects the needs of the people they serve, not a political agenda.

To advocate for a congressional budget that reduces or prevents cuts, you can combine direct engagement with lawmakers, grassroots organizing, and working with advocacy groups, such as the National Council on Nonprofits, or other groups that organize around issues you are passionate about.

Federal Funding Still Available

Despite the gloom and doom, there is still Federal funding available. We particularly want to highlight the Rural and Tribal Assistance Pilot Program (RTA) that supports planning and pre-development activities for transportation projects in non-urban areas. The RTA online application portal opens September 8, 2025 at 2:00 and closes October 8, 2025. This is a first-come, first-served opportunity with $54 million available, including a $20 million tribal set aside. This is a highly unusual way to distribute Federal discretionary funding and we strongly encourage rural and tribal communities to apply quickly, before funding is exhausted. If you need support, The Grant Plant is ready to work on these applications – but contact us as soon as possible.

Grants.gov has continued to issue forecasts – after EO 14332, opportunities being released or forecasted slowed to a trickle, but now appear to be more on track. Most forecasted grants are listed from the Department of Health and Human Services and are expected to be released in the late fall or early spring. A few examples of recently forecasted grants include:

  • Grants for Adaptive Sports Programs for Disabled Veterans and Disabled Members of the Armed Forces (Adaptive Sports Grants and Equine Therapy Grants)
  • Centers of Excellence in Healthcare Quality: Detecting and Responding to Threats to Healthcare Safety
  • HEAL Initiative: Pain Management Effectiveness Research Network: Clinical Trial Planning and Implementation Cooperative Agreement
  • Comprehensive Partnerships to Advance Cancer Health (CPACH)
  • Promoting Resources and Opportunities for People with Autism and Fragile X and their Families Across the Lifespan
  • Interdisciplinary Research to Understand the Complex Biology of Resilience to Alzheimer’s and Related Dementias Disease Risk

We recommend that organizations stay attuned to Grants.gov to keep tabs on the opportunities that are anticipated for release so you can start planning early.

We are continuing to actively track open Federal grants alongside private opportunities in our weekly Grant Watch. If you are not yet subscribed, this is a free service and you’ll receive an email each week with new opportunities.

Conclusion

Our advice is to stay vigilant, proactive, and engaged. Leverage trusted resources, plan ahead using forecasts, apply early when speed matters, and don’t hesitate to raise your voice in defense of the programs and people that Federal funding was designed to support. Looking ahead, Congress is expected to pass a Continuing Resolution by September 30 to temporarily fund the government at current levels. While this can prevent a shutdown, it also means delays for new or expanded grant programs. For grantseekers, that will mean being ready to act fast when funding becomes available.

The Grant Plant is here to help you through it. As always, please feel welcome to share your resources with us, or reach out to discuss Federal grant strategy.

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*The Grant Plant offers a variety of grant writing and grant management trainings. Don’t miss our 3-day comprehensive Federal Grants Management training (in-person, in Albuquerque, October 21-23, 2025).

This article is part of The Grant Plant’s bi-monthly series designed to help our partners stay informed about these shifts and better navigate the evolving funding landscape.

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