Grants are the holy grail of local government funding. They can help you fix roads, upgrade water systems, launch community programs—you name it. When budgets are tight (and let’s be real, when aren’t they?), grants give you the financial boost to keep your community moving forward.

But let’s talk about the not-so-fun part. Finding the right grants is a headache. And navigating the application process could be a full-time job. Keeping track of compliance requirements? Like juggling flaming swords (okay, a little over-the-top, but you get it). The reality is, securing and managing grants can feel overwhelming. But it doesn’t have to be.

We’re breaking down the entire grant process step by step, no fluff (no cap, either). You’ll be able to:

• Find grants that match your community’s needs (because not all money is good money).

• Write winning applications that get noticed.

• Manage grant funds without drowning in compliance paperwork.

Grants aren’t just about funding—they’re about transformation. They build stronger infrastructure, create opportunities, and improve quality of service. And with the right approach, you can secure the funding your community deserves.

Types of Grants and Which One Fits Your Needs

Not all grants are created equal. Some are guaranteed if you meet the criteria, while others require you to go head-to-head with other applicants in a high-stakes competition (cue the dramatic music). To make the most of grant opportunities, you need to know what’s out there and which type best fits your project. Here are some of them.

Federal Grants

Let’s start with federal grants, the big players in the funding world. There are a few different kinds.

Formula Grants

Formula grants are like those birthday checks from your grandparents—you don’t have to ask for them; they’re given based on set criteria (you're the grandkid). These grants are distributed based on factors like population size, income levels, or specific community needs.

The Community Development Block Grant (CDBG) program helps fund infrastructure, economic development, and social services in cities and counties. If you submit an application and your community qualifies, you’re getting funds—no competitive proposal needed.

Formula grants are best for long-term planning, ongoing public services, and infrastructure improvements where funding amounts are predictable.

Competitive Grants

Unlike formula grants, competitive grants are a battle. Federal agencies set aside funding for specific projects, and you have to prove why your project deserves the money. This means writing a compelling application (we'll get to this later), aligning your project with federal priorities, and crossing your fingers.

Agencies like the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) provide competitive grants for things like improving public transit, reducing pollution, or upgrading water systems.

Want funding for a road safety project? The Safe Streets and Roads for All (SS4A) grant from the DOT supports local initiatives to prevent traffic fatalities. But competition is fierce—only the best applications win (like Squid Game... but less running and no one dies).

Competitive grants are for big, one-time projects that align with federal goals, like sustainability initiatives, infrastructure upgrades, or disaster preparedness programs.

Pass-through grants

Pass-through grants are interesting. They start at the federal level but are distributed by state agencies. That means the federal government funds the program, but your state decides how to allocate the money.

Even if you don’t win a competitive federal grant, your state might have funds from that same program—just with different requirements.

Federal housing assistance funds often go through state housing departments, meaning your best shot at funding may be at the state level rather than applying directly to a federal agency.

Pass-through grants are best for infrastructure projects, public health programs, or community initiatives that align with state priorities.

State Grants

Federal grants tend to get all the attention, butstate grants are often a better fit for local governments. Why? Because they’re designed with state-specific priorities in mind. They’re more tailored to the challenges your community actually faces. Plus, state agencies are often easier to work with than massive federal departments.

targeted state programs 

Unlike broad federal grants, state grants focus on local and regional needs. These funds support everything from public health initiatives to economic development projects, helping communities thrive.

Some common areas where states offer funding are:

• Public Health – Grants for mental health services, emergency preparedness, or addiction recovery programs.

• Economic Development – Funding to attract businesses, support workforce training, or revitalize downtown areas.

• Infrastructure – Money for road repairs, water system upgrades, or broadband expansion.

A lot of states offer small business grant programs to boost local economies, too. If your community is trying to support entrepreneurs, a state-level economic development grant might be easier to secure than a competitive federal program.

funding cycles & priorities

Every state has its own funding calendar, application deadlines, and shifting priorities (unfortunately). Some years, a state might focus on environmental projects; the next, it might prioritize public safety.

How do you stay ahead of the game?

• Bookmark your state’s grant website – Most states have dedicated grant portals listing available funding. Make it your mission to check it once a month.

• Subscribe to state agency newsletters – These often announce new opportunities and deadline changes.

• Build relationships with state grant officers – They can provide insights on upcoming funding priorities. (LinkedIn is a great tool for this, along with industry conferences and networking events.)

Don’t overlook state grants. They’re often more accessible, more relevant to local needs, and come with fewer hoops to jump through. By tapping into these funds, you can secure the resources your community needs (without getting lost in the federal bureaucracy).

Private Foundation Grants

When you think of grants, government funding probably comes to mind first. But private foundations? They’re a goldmine for local governments—especially for innovative projects that might not fit neatly into federal or state funding categories.

Unlike government grants, foundation grants often come with fewer restrictions, more flexibility, and a focus on creative solutions to community challenges.

Private foundations aren’t handing out money just because you ask nicely (though wouldn’t that be great?). They have specific missions—improving education, expanding healthcare access, supporting local economic development, etc.

The key is finding a foundation that aligns with your project’s goals. Here are some common focus areas for foundation grants:

• Education – Funding for early childhood programs, school improvements, or adult learning initiatives.

• Public Health – Grants for mental health programs, substance abuse treatment, or healthcare access.

• Community Development – Support for affordable housing, workforce training, or neighborhood revitalization.

building relationships

Foundation grants often involve relationship-building. Getting funding isn’t just about filling out paperwork; it’s about making connections. You can improve your chances by:

• Researching foundation priorities – Read annual reports, grant guidelines, and past funding recipients.

• Engage before you apply – Attend foundation events, reach out to program officers, and ask questions before submitting a proposal.

• Show alignment – Clearly demonstrate how your project supports the foundation’s mission and community impact goals.

Many foundations prefer to fund organizations they know and trust, so investing time in relationships can significantly boost your chances of receiving funding.

Diversify Your Funding Sources

Grants are fantastic—until they’re gone. Relying on a single grant or funding source is like putting all your eggs in one basket… and then watching that basket dangle over a pit of uncertainty (dramatic, we know).

Funding priorities shift, grant programs get cut, and suddenly, your well-planned project is in jeopardy. That’s why diversifying your funding sources is essential.

Mitigate Risks

If your entire project depends on a single grant, you’re playing a risky game. Federal, state, and private grant priorities change all the time. What’s funded today might be gone tomorrow.

A diversified grant portfolio:

• Protects your projects from sudden funding cuts.

• Ensures ongoing support for critical community initiatives.

• Gives you the flexibility to adapt when one funding source dries up.

Think of it like investing—you wouldn’t put all your money into one stock, right? The same principle applies here.

Tailoring Your Projects to Available Funding 

Not every project fits neatly into a single grant program, either. The key to securing more funding is aligning your projects with multiple grant opportunities.

Research different grants at federal, state, and local levels. Look at private foundations—many offer funding for community-focused initiatives. Match each project to the mission of the funding agency (because grants go to projects that align with funders’ goals).

For example, if you’re planning a public transportation project, you might apply for:

• A federal grant for infrastructure improvements.

• A state grant focused on sustainability.

• A private foundation grant promoting accessible transit options.

More funding sources = more chances of success. Don’t let your community’s future hinge on a single grant. By diversifying your funding sources, you reduce risk, increase opportunities, and set your projects up for long-term success.

Building for Long-Term Success

Finding a grant is one thing. Winning it? That’s another story. The key is alignment—your project must fit exactly what the funder is looking for.

• Read the eligibility criteria carefully – If a grant is only for rural communities and your city doesn’t qualify, move on.

• Study the evaluation criteria – Many grants use a scoring system; knowing what reviewers prioritize helps you craft a stronger application.

• Use the funder’s language – If they emphasize “sustainability” and “community impact,” weave those terms into your proposal (authentically, of course).

Think of it like dating. If your project and the grant’s mission don’t align, forcing it won’t work—find a better match. And winning a single grant is great, but relying on one funding source is risky. A strong grant strategy includes multiple funding sources and a long-term plan.

• Diversify your funding – Apply for a mix of federal, state, and private grants to reduce risk.

• Maintain a grant calendar – Track deadlines, reporting requirements, and renewal opportunities.

• Develop a funding strategy – Prioritize grants that align with your community’s long-term goals, not just one-off projects.

Keep a record of past applications, reviewer feedback, and successful proposals—this will make future applications faster and stronger.

The grant research process doesn’t have to be overwhelming. With the right tools, a clear strategy, and a diversified approach, you can find the funding your community needs—without drowning in paperwork.