Hi Reader,

If you manage federal grants, the political climate in your state may be affecting more than just public opinion—it could be shaping your access to funding.

This week, we’re diving into a rising issue: how state-level resistance to federal executive orders—especially around DEIA, climate, and immigration—could disrupt grantmaking priorities, eligibility, and flow of funds.

When Federal and State Priorities Collide 💥

Some states are openly rejecting or suing over federal mandates tied to grant programs—and it’s already causing ripple effects:

Funding delays or denials for agencies serving immigrant, LGBTQ+, and other targeted populations
Uneven implementation of pass-through funds based on state agency alignment with federal priorities
Increased risk for nonprofits operating nationally or across ideologically different states

Where to track updates:

Your state’s grants portal or budget office (many states publish active/opposed federal funding streams)
State-level nonprofit associations or policy groups
National Council of Nonprofits and NGMA for aggregated news and alerts
State attorney general and governor press releases, especially for litigation updates

Now’s the time to map your funding risk and start stress-testing your strategy. If your organization spans state lines—or serves vulnerable populations—scenario planning isn’t optional anymore.

FAQ of the Week 📌

Q: What happens if I serve constituents nationally but reside in a red or blue state?

A: It depends on how your state interprets or implements federal executive orders and funding guidance. If your state resists federal DEIA, climate, or immigration directives, your funding could face restrictions or delays—especially with pass-through funds. Be proactive with scenario planning and stay in communication with both your state and federal contacts.

Bucket your funding by risk to plan ahead and avoid disruptions. Sort your current and upcoming grants into safe, maybe, and red flag categories based on how closely they align with both federal and state priorities.

Federal Grant News to Watch 📰

State Pushback Creating Compliance Conflicts: More states are rejecting or suing over federal mandates tied to DEIA, immigration, and climate. This is already causing pass-through delays and misaligned compliance requirements. Review how your state’s agency policies stack up against federal executive orders—especially before applying for new awards.
Earmarks Are Out (Again): The latest federal budget dropped Congressionally Directed Spending (earmarks), cutting off a key source for infrastructure, training, and equipment funding. Organizations dependent on these funds will need to pivot to competitive or formula-based programs.
Cuts to Public Health and Research Grants: Recent decisions rescinded over $12B in state health grants and canceled $450M in HIV research funding—affecting services for vulnerable populations and introducing uncertainty for public health programs.
More Power (and Pressure) on States: As more funding flows through block grants, states are taking on more grant administration—but with wide variance. Expect less consistency across jurisdictions and more pressure on pass-through entities to stay on top of local compliance rules.

Upcoming Trainings 📅

Mark your calendars! Get ahead of the risk with focused, practical training from MyFedTrainer.

May 6–8, 2025

Live Grant Management Boot Camp
Three days of expert-led instruction, hands-on tools, and live Q&A to build a rock-solid grant compliance foundation.
🔗 Register Here »

May 23, 2025
Save the Date – May Compliance Webinar

Our next live webinar is happening on May 23rd. Stay tuned for topic details and registration—this session will support your ongoing compliance and audit readiness.