State Funding 101: Identifying Competitive Opportunities

    Winning government funding is often focused on opportunities provided by the federal government. This is for good reason, as programs with the most funding are administered at the federal level. However, focusing solely on these opportunities will leave you vulnerable to missing opportunities made available by state governments.  

     Similar to the federal government, states provide funding to address a wide variety of issues, including housing, transportation, infrastructure development, education, agriculture, environmental protection, healthcare, and much more. Additionally, funding is available to nonprofit and for-profit entities of all kinds, as well as local governments and their agencies.  While funding at the local level is valuable to pursue, there are several challenges that one may run into along the way.  

     The first problem is the lack of a central database like Grants.gov, which typically serves as the main platform for finding federal opportunities. Most states do not provide a database that compiles opportunities across different agencies. Among the states that do provide such a service, they are not always comprehensive or reliable. Another potential roadblock is the lack of effective website infrastructure for some states. The efficiency of opportunity identification is much lower in states lacking easy-to-navigate websites. 

     While there are challenges, the potential funding is worth it! Following the advice included in this insight will allow your organization to bridge funding gaps by utilizing state-level funding and resources suitable for your organization.  

Funding for Local Governments 

    Whether you’re a local government desperately in need of funding, or one just looking to fund quality-of-life projects, there are state-level funding opportunities that fit your needs. Opportunities include disaster mitigation, public safety, environmental protection, and economic, infrastructure and transportation development. State-level opportunities are often more tailored to the needs of the communities in their states, presenting many localities with more applicable funding than that provided by the federal government. 

Funding for Nonprofits

    Funding for nonprofits is often defined by specific needs of the state. Therefore, funding for nonprofits is typically limited to disaster mitigation, healthcare, and homelessness. More general opportunities for nonprofits may be available on a state-by-state basis. While variety may be lacking, a smaller level of competition can make these opportunities perfect for your nonprofit. 

Funding for For-profits

    Similar to nonprofits, funding is available to for-profit entities for projects meeting the needs of the state. These programs focus mainly on transportation, energy, housing, infrastructure or economic development. Workforce development is another area of available funding and is an exception because these funds are open to a variety of organizations, regardless of their mission. 

State-funded vs. Pass-through programs 

    States administer many funding programs, some that are sourced from their own tax revenue, and others that are funded by the federal government. The differences between these programs are important in one way. Funding from pass-through programs will be available in all participating states, while state budget-sourced programs may be more unique. This is useful knowledge if you are applying for funding on behalf of an entity working on projects in several states. 

When pursuing state-level funding opportunities, the most important thing is to develop and stick to a process. Many state websites do not prioritize user experience, making it easy for possible opportunities to fall through the cracks if you’re not careful. If you stick to a process, you’ll be able to effectively pursue funding at the state level without missing a beat!