City leaders across the U.S. are calling for reforms to the federal grant application process, arguing that its complexity is preventing many communities—especially smaller ones—from accessing critical funding.
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Speaking during a panel at the National League of Cities’ Congressional City Conference, Kenneth Megan described the system as overly burdensome.
Applying for federal grants can be a “mind-numbing process” that discourages participation, particularly among under-resourced municipalities, Megan said. He noted that these grants are essential for supporting infrastructure improvements, housing development, public safety and climate resilience initiatives.
Despite historic funding from legislation such as the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and pandemic-era relief like the American Rescue Plan Act, many cities struggle to access available resources.
“The 2021 Infrastructure Investment and Jobs Act, the 2022 Inflation Reduction Act and pandemic relief funding … provided historic levels of funding for ‘cities to transform their communities,’” Megan said.
However, navigating grant applications remains a challenge. Notices of funding opportunities are often lengthy, technical and difficult to interpret—especially for municipalities with limited staffing.
“When the process becomes too complex or too time-consuming, then many communities just decide not to apply,” said Megan. “That means federal dollars don’t reach the places that need it the most.”
For example, Jason Ashmore, mayor of Sesser, Illinois, said he frequently relies on a dictionary to decode application language while working with a small team.
This disparity creates an uneven playing field. Larger cities often employ dedicated grant managers and consultants, while smaller communities rely on limited staff or even volunteers.
City leaders and policy advocates are backing the reintroduction of the Streamlining Federal Grants Act, a bipartisan effort designed to simplify and modernize the application process.
The legislation, introduced by Gary Peters and James Lankford, would require federal agencies to make grant notices shorter, clearer and easier to navigate.
It would also:
Providing local officials with input is key to ensuring reforms reflect real-world challenges, panelists said.
Giving city leaders a “seat at the table” would allow them to better communicate their needs and frustrations, Ashmore added.
Panelists also offered practical advice for municipalities navigating the current system.
Tonya Graham, mayor of Ashland, Oregon, said many cities struggle to identify which grants they are most competitive for due to fragmented information.
Some municipalities even hesitate to apply out of concern they lack the capacity to manage awarded funds—raising the risk of having to return money or face financial consequences.
Daphnee Sainvil of Fort Lauderdale, Florida highlighted another issue: inconsistent communication from federal agencies due to staff turnover, which can lead to conflicting guidance.
To improve outcomes, city officials recommended:
“If you know that you only have the capacity to accept two grants, be very intentional about the grants that you are applying for,” said Sainvil.
The current system often favors larger cities with more administrative capacity, leaving rural and smaller municipalities at a disadvantage despite having significant infrastructure needs.
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While federal funding levels have increased dramatically in recent years, the administrative complexity has created a bottleneck that limits how effectively those funds are distributed.
Modernizing grant management systems and standardizing application formats could significantly reduce barriers, making the process more accessible and transparent.
Without reform, critical infrastructure projects—particularly in smaller communities—may face delays or fail to materialize due to lack of access to funding.
Originally reported by Danielle McLean in Construction Dive.
