January 2026 Funding Trend

January 2026 Funding Trends
 
Recent federal budget actions signal a more stable though still nuanced grant funding environment heading into FY26. Congress has largely rejected proposals for deep reductions to grant-driven programs and instead sustained or modestly increased funding across several key portfolios, particularly in health, behavioral health, education, and research. Final FY26 appropriations included targeted increases for programs such as substance use prevention and treatment, the 988 Suicide & Crisis Lifeline, childcare and early education, and public health infrastructure, while also adding nearly $1 billion in congressionally directed health project funding. These actions underscore bipartisan recognition of the role federal grants play in maintaining essential services, even as fiscal pressures persist.

At the same time, funding shifts and program-level nuances continue to shape the grant landscape. Some agencies remain cautious under short-term continuing resolutions particularly within the Department of Homeland Security, resulting in staggered or compressed timelines for certain public safety and preparedness grants. Conversely, new and expanded funding streams are emerging, including first-ever federal investment in areas such as gambling addiction research and new pilot initiatives addressing homelessness and substance use through SAMHSA. Together, these developments point to a FY26 environment where many grant programs are protected or growing, but where timing, readiness, and close monitoring of agency guidance remain critical for applicants seeking to capitalize on evolving funding priorities.


Key Federal & State Funding Developments
· USDOT/MARAD FY26 Port Infrastructure Development Program (PIDP) opened MARAD’s FY26 PIDP NOFO makes $450M available for port modernization, freight mobility, and resilience/safety improvements, with applications closing Feb 28, 2026.
· CMS Rural Health Transformation Program rolled out (state-led rural health system transformation): CMS’ new Rural Health Transformation (RHT) Program (authorized by the One Big Beautiful Bill Act) provides a state-driven pathway to strengthen rural health access and outcomes through innovation, partnerships, infrastructure development, and workforce investment.
· HUD FY25 Choice Neighborhoods Implementation Grants moved into active application mode (community revitalization and housing): HUD’s FY25 CN Implementation NOFO (posted in December and actively worked in January) offers $75M total funding to implement neighborhood transformation plans. Applications due Mar 9, 2026
· USDOT/FHWA PROTECT Discretionary Grants stayed “live” for FY26 resilience projects (transportation hardening): The PROTECT Discretionary program continues accepting FY26 applications (deadline Feb 24, 2026) for projects that harden surface transportation against flooding/extreme weather and other hazards, useful for evacuation routes and critical-response corridors.
· DHS was the “only holdout” in the FY26 package: House Appropriations leadership confirmed that the Senate-amended consolidated FY26 package fully funds five divisions for the full fiscal year but places the Department of Homeland Security (DHS) division under a two-week Continued Resolution (CR) until Feb. 13, 2026, while negotiations continue.
· What a short-term DHS CR means operationally: Under a CR, DHS generally operates at prior-year funding levels and conditions, with typical limitations on “new starts,” funding increases, and certain procurement/program changes until full-year appropriations are enacted. OMB’s CR apportionment guidance explains how agencies must manage obligations under CR conditions, which is why DHS grant programs including AFG and SAFER can see delayed NOFO releases, staged obligations, or cautious award timing until DHS receives full-year FY26 appropriations.
· Practical grant takeaway for applicants: Even though most of the federal government now has full-year FY26 appropriations, DHS-funded grant programs (including FEMA preparedness/mitigation streams) may continue operating with short-horizon certainty until DHS receives a full-year bill so applicants should expect continued deadline sensitivity, possible timeline compression, and rapid pivots once DHS appropriations finalize.

Useful Grant Education

Gov1: Webinar: Grants funding under the Infrastructure Investment and Jobs Act

FireRescue1: On-demand: How to build firefighter health facilities

Police1:  How Law Enforcement Agencies Can Secure Grant Funding for Officer Safety Equipment

NLC: Surface transportation bill will shape the U.S. transportation outlook | Smart Cities Dive
 
Opioid Settlement Tracker: Opioid Settlement Tracker


January 2026 Trend Spotlight

• DOE - Restoring Reliability: Coal Recommissioning and Modernization Federal | Energy / grid reliability
  Supports projects that recommission or modernize coal-fired generation to improve reliability, resilience, and performance (often including major equipment upgrades and plant modernization planning). Best fit for utilities/plant owners and eligible partners focused on grid stability. Closes: Feb 11, 2026

• SAMHSA - 988 Suicide & Crisis Lifeline Administrator
  Federal | Behavioral health / crisis response infrastructure
  Funds statewide/territorial capacity to administer and strengthen 988 operations, including coordination, oversight, performance improvement, and system integration with crisis response partners (call centers, mobile crisis, and related behavioral health systems). Due: Feb 27, 2026
• USDOT/MARAD - Port Infrastructure Development Program (PIDP) FY26
  Federal | Ports / freight mobility / resilience
  Funds port and intermodal projects that improve freight movement, safety, congestion reduction, and resilience, including modernization of port facilities and connecting infrastructure. Strong for port authorities and local/regional partners with shovel-ready plans. Closes: Feb 28, 2026
• EPA - Environmental Education (EE) Grants Program
  Federal | Education / community stewardship
  Supports programs that increase environmental literacy and stewardship through education and training (often strong for nonprofits, schools, local governments, and community partnerships). Good alignment for projects tied to water quality, community resilience, and behavior change. Closes: Mar 3, 2026
• USDA Rural Development - Rural Economic Development Loan & Grant Program (REDLG) Federal | Rural community development (via utilities/co-ops)
  Provides funding through local utility organizations and rural electric/telephone cooperatives that then re-lend to support business development, community facilities, and job creation in rural areas. Helpful for small communities working through a utility partner. Next quarterly deadline: Mar 31, 2026
• USDA NIFA - AFRI Strengthening Agricultural Systems (SAS)
  Federal | Food/ag system resilience & workforce
  Supports projects that strengthen local/regional agriculture and food systems, including workforce development, resilient supply chains, and community-based innovation (often a fit for universities, nonprofits, and multi-partner coalitions). Due: Feb 26, 2026

Public-Safety vs. Non-Public-Safety Grants

Quick Application Links
US DOJ Enhanced Collaborative Model (ECM) Task Force to Combat Human Trafficking Closes: March 11, 2026
https://app.grantfinder.com/grants/us-doj-enhanced-collaborative-model-ecm-task-force-to-combat-human-trafficking-5aq0kwgel8baeewe
US DOT Port Infrastructure Development Program Closes February 28, 2026
Port Infrastructure Development Program | MARAD
HUD Choice Neighborhoods Implementation Grants
Closes March 9, 2026
Funding Opportunities | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
Bridgestone Americas Trust Fund Grant Closes: February 26, 2026  
https://app.grantfinder.com/grants/bridgestone-americas-trust-fund-grant-tagk2bgvb4yfpyb3
HUD Choice Neighborhoods Implementation Grants Closes 9-Mar-26 https://app.grantfinder.com/grants/us-hud-choice-neighborhoods-planning-grants-program-vcbjedmroerfcvqz
US Department of Interior (DOI), Office of Wildland Fire (OWF) - Slip-on Tanker Units Closes 23-Mar-26
https://app.grantfinder.com/grants/us-department-of-interior-doi-office-of-wildland-fire-owf-slip-on-tanker-units-yrnubltqr8ofutvj