Amanda Wood is a senior director at Becker, where she advises local governments on federal funding strategy and grant compliance.
As Congress debates 2027 appropriations, the real contours of federal funding for cities and counties are coming into focus. The biggest risk for communities isn’t a closed spigot. The real risk is stepping out of competition for federal dollars just as the rules of engagement become clearer.
The Trump administration swept into office last year with a single-minded focus to reprioritize federal spending. And this they did. Between DOGE actions and the tax policy changes enacted in the One Big Beautiful Bill, the administration has worked to realign federal spending priorities.
Stories of grants being cut, funding being stalled and entire programs and agencies being dismantled have dominated the news, but the reality of federal funding is more complicated than any single narrative can convey.
While the executive branch may have control over certain funding decisions, it’s up to Congress to appropriate funds within the budget — something that happens through a bipartisan negotiation process on an annual basis. Across the federal government, especially in the agencies that house the grants many communities rely on, funding has shifted but remains largely intact. The federal government’s workhorse programs continue to enjoy broad, bipartisan support, especially the more formula-based programs such as Community Development Block Grants. These programs have direct benefits for constituents, and Congress doesn’t eliminate those opportunities lightly.
The mistake local government leaders make amid this political back-and-forth is getting caught up in the headlines. Just because a grant or a project gets cut or reduced does not mean that federal dollars have disappeared. The money is out there, but assumptions about which projects the federal government will and will not fund can lead to missed opportunities exactly when communities most need them.
How communities remain competitive
What has changed and will continue to change is the narrative and framing of the projects that get funding. Winning grants and federal dollars has everything to do with how a project is characterized in the grant application and whether projects are perceived to be in alignment with administration priorities.
Projects that benefit U.S. businesses, rely on public-private partnerships, use U.S.-made materials or improve the safety and security of the community will be competitive. This isn’t a secret: Every federal funding solicitation comes with clear priorities and scoring rubrics. Communities that write directly to those rubrics — spoon-feeding reviewers exactly what they're looking for — will have success.
Small shifts in how a project is described can make a huge difference in its success — simply by leaning into the rubric and reflecting the administration's known priorities. Instead of highlighting the climate friendliness of a transportation project, for example, grant applications should highlight how it improves safety. Housing projects can focus on private ownership and public safety. And projects with private industry validators or sponsors will boost business-friendly credentials.
That’s not to say that framing alone can solve everything. Court cases are testing how far the executive branch can go in conditioning or withholding funds based on compliance questions that may sit outside the four corners of a specific grant. Winning and keeping federal dollars, especially under this administration, may require even greater operational discipline from the start through airtight documentation, timely performance reports and well thought out draw downs.
The headlines about federal funding don’t tell the whole story. Federal money is still very much out there — and in some cases, growing. But accessing the funds depends on community leaders willing to stay engaged, stay attentive to priorities and operate with compliance discipline.
Someone is going to get the funding. If your community doesn’t apply — and doesn’t adapt — your neighbors will.
