Grants and the Government Shutdown

Curious about how the shutdown is affecting grants?  Unfortunately, the shutdown is affecting a variety of people and services, from federal employees to the rest of us.  Let’s take a look at the funding world.

Federal Grants:

I can only speak from my experiences.  I write and manage several federal grants for Fire Districts in my area.  At this point, we have a few reimbursement requests that were approved by the granting agency, but are stuck in shutdown “limbo”.  Since payments are receipt-based, this hurts the departments who have already incurred the expense and cannot incur future expenses until the nightmare is over.  If it continues, organizations that receive federal funding could face their own lay-offs and serious budget constraints.  The good news:  the money for your existing federal grant has already been budgeted, agreements have already been validated.  As soon as the government reopens, everything picks up exactly where it left off.  The bad news: no one knows for certain what will be the fate of upcoming federal opportunities. is open and workspace is functioning well.  My understanding is that some federal funding agencies have not been affected by recent events.

State Grants:

Many State grants are funded by Federal grants.  Therefore, it’s safe to say that several of these awards and reimbursements will be adversely impacted.  As an example, the Arizona Department of Forestry and Fire Management funds Hazardous Fuels Mitigation projects throughout the State.  At this time, they are preparing awards and contracts, but we have been advised that there may be a long delay in receiving funds.

Corporate and Foundation Grants:

The trickle-down effect reaches all sectors, but Corporations and Foundations have a bit more autonomy – to a point.  While they operate independently of the Feds, they still fall victim for two main reasons. Firstly, their investments are drastically impacted by a down market, so funding opportunities may be reduced.  Secondly, since some of these organizations work in government contracts, there are those who are suffering along with everyone else.  I am still applying for these grants to assist my clients – business as usual!

Your Turn:

Have you had challenges since the shutdown? Please share your stories.


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