4 Tips to Navigate the New Uncertainty in Federal Funding
This is a guest post written by Bria Arline founder and CEO of a partner firm IQ Ignited
On January 27, 2025, the world was stunned when the Office of Management and Budget (OMB) issued Memo M-25-13, freezing all funding for federal grants and loans.
Spending freezes are not uncommon; every incoming president has issued some form of funding halt or audit order. For instance, in 2014, President Obama paused funding for gain-of-function (GOF) research on influenza, SARS, and MERS viruses (funding was reinstated in 2017). Likewise, new administrations often override previous policies, particularly through Executive Orders (EOs)—such as the Biden Administration’s Justice40 initiative, which directed that 40% of the benefits from certain federal climate, clean energy, and housing investments flow to disadvantaged communities.
What makes this funding freeze unique is its unprecedented scope. By unilaterally halting all federal funding indefinitely, the Trump Administration paused an estimated $3 trillion in funding. Although the government-wide freeze has since been lifted, some agencies may still experience funding delays. For example, USAID is being merged into the State Department, which is conducting a full audit of all foreign aid spending.
However, the freeze's greatest impact may be the precedent it sets—introducing a level of uncertainty in federal grant funding that has never been seen before.
In an increasingly polarized funding environment, how can your organization secure the resources you need to fuel your mission?
Here are four key strategies to help you navigate uncertainty and find funding opportunities in this evolving landscape.
1. Understand the Current Administration's Priorities
The first federal grant was issued in 1862 under the Morrill Act, which allocated 10 million acres of land to establish public colleges focused on agriculture and mechanical arts—essentially, STEM education.
Since then, federal grants have been a cornerstone of the U.S. government’s efforts to advance national interests as understood by the governing administration.
The first step in navigating federal funding is assessing how an incoming administration’s platform aligns with—or diverges from—the work you do.
For example, the Executive Orders (EOs) that facilitated the January spending freeze reflect key pillars of President Trump’s Agenda 47, e.g., the administration's agenda emphasizes heavy investment in all forms of American energy and the removal of "green" restrictions, which led to the Unleashing American Energy executive order.
Other executive orders affecting current government reimbursements include:
- Protecting the American People Against Invasion (Jan. 20, 2025)
- Reevaluating and Realigning United States Foreign Aid (Jan. 20, 2025)
- Putting America First in International Environmental Agreements (Jan. 20, 2025)
- Ending Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20, 2025)
- Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government (Jan. 20, 2025)
- Enforcing the Hyde Amendment (Jan. 24, 2025)
As outlined in the now-rescinded OMB Memo M-25-13, the purpose of the spending pauses and audits is to ensure that all domestic and international grant and loan programs align with the President’s policies and priorities as reflected in these EOs.
The question then becomes, does the executive branch, including federal agencies, have the authority to stop funding for obligated awards?
The answer is: yes, no, and it depends.
The President can order a review of funding programs to evaluate policy alignment, effectiveness, and impact, within 30-90 days of the award being obligated. However, a freeze issued beyond this period may be prohibited under the Impoundment Control Act of 1974 (ICA), which requires the President to seek approval from Congress before rescinding funding.
Additionally, under 2 CFR 200.344(a), federal agencies have the authority to review and reallocate funding to ensure alignment with agency priorities. In the coming days, the fate of both appropriated and obligated funds may fall under agency discretion. Finally, multi-year awards have always been subject to funding availability, meaning that Congress may choose not to renew funding for programs that channel grant money to your organization.
Because funding fluctuates with political shifts, the key to securing federal grants is knowing where to look for opportunities and how to strategically position your organization to align with changing priorities.
2. Look for Opportunities
A well-planned federal grant strategy must account for both the current administration’s priorities and by the pressing needs that shape policy.
The previous Trump Administration prioritized funding for education and workforce development, directing resources toward several key initiatives:
- $200 million in grants to promote STEM education for girls and minorities.
- $1.3 billion in funding for career and technical education programs to support middle-skilled jobs.
- $255 million annually in renewed funding for HBCUs.
Other areas that historically received Trump Administration funding include support for veterans; economic development for rural communities; and mental health initiatives.
Infrastructure has remained a bipartisan priority for years. The 2021 Infrastructure Investment and Jobs Act (IIJA)—also known as the Bipartisan Infrastructure Law—allocated billions of dollars to revitalize America’s infrastructure. While the government has earmarked these funds for specific programs, only 66% of the funding has been obligated to date.
The law also grants the executive branch significant flexibility in redirecting funds. Many IIJA recipients working on green energy projects have faced payment delays, and it remains uncertain whether obligated funding for these projects may be reallocated.
Additionally, IIJA funding has underscored a critical workforce shortage making it difficult to complete the work; for instance, Georgia is having trouble finding skilled workers so that it can expand internet access in key rural areas. Georgia is one of many recipients of the $42.5 billion broadband expansion (BEAD) grant program. Without a skilled workforce, meeting the objectives of obligated funding becomes increasingly challenging.
The current administration also aims to position America as a leader in Big Tech, emphasizing AI innovation—an effort that demands investments in STEM education and in building an AI-trained workforce.
Other key concerns impacting policy include:
- Expanding business development and healthcare access for rural communities.
- Addressing the national mental health crisis.
- Combating homelessness among veterans.
- Meeting the growing demand for data scientists and cybersecurity professionals in both private sector and government roles, including at the Department of Defense.
- The failing academic performance of American students.
Federal Funding, like all philanthropy, goes through phases; what was popular to fund in one era may not be of importance in another. However, we can take a guess at what grant programs will likely be extended or implemented based on the administration's platform and the needs of the community. If you’re in doubt about a grant that you have previously found on grants.gov, reach out to the funding agency to see if that program is likely to be funded.
3. Position Your Organization to Maximize Federal Dollars
When President Biden introduced Justice40, many organizations without established DEI priorities quickly pivoted—either by emphasizing existing efforts in this area or by developing new competencies to align with the initiative.
Under the Trump Administration, your organization will need to strategically reposition how it presents its work.
For example, if your program supports marginalized communities in achieving economic growth, that’s great—but when approaching a federal funding agency, avoid focusing on DEI. Instead, highlight how your program has successfully built a well-trained workforce that benefits both individuals and the broader community.
Do you run a program that provides equine-assisted therapy for justice-involved youth, previously framed through the lens of racial disparities and social justice? No problem—as long as it aligns with the executive orders previously discussed. When presenting your program, emphasize measurable community impact, such as improving emotional resilience and helping youth become thriving, productive members of society.
You should also take time to build relationships with elected officials, either directly or through a lobbying firm. Maintain rapport with federal agency staff who may be able to offer guidance as you navigate working with the agency in these changing times.
Since the Trump Administration has pledged to significantly reduce federal spending, government dollars will be more competitive. Establishing a strong reputation with funding agencies by effectively managing grants is more important than ever. Focus on ensuring strong financial controls and timely reporting to demonstrate your organization's accountability and effectiveness in implementing the project. And be realistic about what you can achieve as you frame your project’s objectives.
Finally, you may consider working with a consultant to help you build the best federal grant strategy for your organization.
4. Diversify Funding
Applying all the steps above will put your organization in the strongest position possible to maximize federal funding.
However, it would be wise not to rely exclusively on federal funding.
The OMB has noted that federal discretionary expenditures are likely to drop to historic lows over the next 10 years.
Diversifying funding is essential, especially if your organization’s mission does not clearly align with the current administration’s priorities. However, this does not have to be an overnight process. Consider how to build your capacity (e.g., working with a consultant) to pursue alternative revenue streams.
For instance, your organization can start by focusing on low-hanging fruit such as “rage giving”—donations motivated by political outrage. Your development team can strategize how to convert this momentum into a broader donor base.
You can also explore state, county, and municipal funding opportunities, as these governing bodies may have priorities that differ from those of the federal government.
Another option is pivoting to private grants to replace federal dollars. However, before pursuing this strategy, consider:
- Whether you have the capacity, both in staff and expertise/connections, to build relationships with private funders.
- Whether you have a robust communication plan that establishes your leadership and expertise in your industry and community.
- Whether you can manage the volume of applications needed to reach your funding goals, as private grants are typically smaller than federal awards.
Building a private grant program takes time and should be viewed as part of a strategic development plan—potentially with the help of a consultant.
Finally, Stay Informed and Be Flexible
As policies shift and administrations change, federal funding is not going away. How and when you utilize these funds should be an informed, ongoing discussion with your executive leadership, board, and program team.
Remaining flexible, responsive, and strategic will help your organization navigate uncertain times successfully.
As the Founder and CEO of IQ Ignited, Bria Arline leads a team of skilled grant consultants who provide comprehensive and customized grant solutions, from research and planning to solicitation and grants management. Her experience has resulted in millions of dollars secured for community-based organizations and local governments. A former educator and marketing professional, she is proud to help education and workforce development organizations across the U.S. expand access to key programs, working alongside a team that has helped clients achieve a 2-3x greater success rate than the national average and secured millions in funding, leading to transformed lives and communities.
Bria Arline holds a Master of Business Administration with an emphasis in Finance and a Bachelor of Arts in Creative Writing from Regent University.