The Government Shutdown & Federal Funding

Written By Micayla Gonzales

Over two weeks after the US government shut down, nonprofit leaders and grant professionals are left with numerous questions and concerns about the impact on federal funding. With no reasonable method of predicting when the government opens up again, it is good to stay prepared and informed on new developments. While this situation no doubt places extra stress on nonprofit professionals, this may be a time to reflect on the challenges that your organization has already emerged from. It’s tempting to feel helpless, but it’s better to strategize and focus on things within your control. 

Here are some strategies for resilience in the face of this uncertainty: 

  • Sign up for newsletters from federal agencies you want to stay informed on. 

  • Create a funding strategy, or a list of grants that you typically apply for throughout the year, to map out your grant funding sources for the year. Include diversified funding sources beyond federal grants such as foundation, state, or private funding. 

  • Type out program details, gather necessary documents, and update written information regularly so that you are prepared to apply for federal grants during their short application window. 

  • Monitor grants.gov regularly to stay on top of impending application deadlines. 

  • Continue to build partnerships as a support system and to potentially collaborate on future proposals. 

  • Take some time to understand the latest major federal policy change to discretionary grants: Executive Order 14332 - Improving Oversight of Federal Grantmaking. For an overview, you can read my blogpost on the topic here. 

Already, nonprofits are suffering from a reduced ability to communicate with grant program officers. This can complicate budget adjustments and stall progress for awarded grants. One thing to keep in mind is that your organization is still responsible for maintaining compliance and properly monitoring active awards during this time. Continue to do the best that you can and write down what you need to go over with federal program officers when they return. 

It’s important to remember that this situation isn’t entirely doom and gloom. Certain aspects of federal funding have continued with business as usual. New grant opportunities from agencies like the Department of Energy, Department of Transportation, and Health and Human Services have slowly continued to post to grants.gov despite the shutdown. 


Helpful Resources

Micayla Gonzales
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Federal Funding to Undergo Big Changes