May 2026 Funding Trend Report

May federal grant activity continued to move toward a practical, project-ready funding environment, with more emphasis on timing, eligibility confirmation, and the ability to respond quickly. The strongest activity was not concentrated in one large national program, but spread across transportation safety, disaster resilience, fire and emergency response, water infrastructure, justice system operations, rural public safety, and homeland security preparedness. For applicants, the month reinforced the need to keep priority projects ready with current budgets, local match documentation, authorizing resolutions, and clear evidence of need. Several opportunities moving into June remain active, which makes early preparation more important than waiting for final internal decisions after a NOFO is released.

A major theme in May was readiness under uncertainty. Federal opportunities continued to favor projects that can show a direct connection to safety, resilience, compliance, operational continuity, and public benefit. Roadway safety, rail crossing safety, FEMA mitigation and preparedness programs, EPA water system support, and DOJ public safety funding all continued to point in the same direction: agencies are prioritizing projects that reduce preventable harm, modernize critical systems, and help communities address known operational weaknesses. Applicants that can connect their project to measurable safety outcomes, service continuity, or long-term cost avoidance are likely to be stronger than those relying only on broad community-need language.

Grant activity should be watched closely, especially for FEMA and Homeland Security programs, fire service funding, DOJ public safety opportunities, and infrastructure programs with active or shifting timelines. FEMA’s BRIC program has resumed after a court-ordered reopening, while homeland security and emergency management funding remains in an area where timing and agency guidance should be monitored carefully. DOJ funding also continues to require close review, as public safety priorities have shifted toward law enforcement operations, violent crime reduction, trafficking, child protection, and other administration-aligned outcomes.

OMB Revisions to Uniform Guidance
OMB’s proposed updates to the Uniform Guidance signal a potential shift in federal grantmaking toward enhanced oversight, accountability, and performance monitoring. Key proposals include expanded pre-award risk assessments, stronger subrecipient monitoring requirements, and broader agency authority to suspend or terminate awards that no longer align with federal priorities. Although the changes have not been finalized, organizations pursuing federal funding should closely monitor developments and continue strengthening internal controls, documentation practices, and grant compliance processes. Public comments on the proposed rule are being accepted through July 13, 2026.

The proposed rule and instructions for submitting comments are available through the Federal Register: https://www.federalregister.gov/documents/2026/05/29/2026-10817/regulation-for-federal-financial-assistance.

Key Federal & State Funding Developments
• FEMA’s Homeland Security Grant Program (HSGP) became a major focus for emergency management agencies, law enforcement organizations, and regional preparedness partnerships as communities anticipated the release of annual preparedness funding guidance. The program supports cybersecurity initiatives, emergency communications, critical infrastructure protection, intelligence sharing, terrorism prevention activities, and regional coordination efforts. Agencies with established preparedness priorities and multi-jurisdictional partnerships are likely to be best positioned when funding becomes available.

• Assistance to Firefighters Grant (AFG) activity increased as fire departments across the country prepared for upcoming application cycles. The program remains one of the most important federal funding opportunities for fire and EMS agencies, supporting apparatus replacement, personal protective equipment, communications technology, training, and other operational needs. Departments with current capital improvement plans and documented equipment deficiencies continue to be strong candidates for funding.

• Staffing for Adequate Fire and Emergency Response (SAFER) Grants remained a priority opportunity for departments facing recruitment, retention, and staffing challenges. Career, volunteer, and combination departments continue to seek funding solutions that support firefighter hiring, volunteer recruitment programs, and long-term workforce sustainability as staffing pressures persist nationwide.

• Edward Byrne Memorial Justice Assistance Grant (JAG) Program continued to serve as one of the most flexible public safety funding sources available to state and local governments. Funding can support law enforcement technology, equipment, training, prosecution, courts, behavioral health initiatives, crime prevention programs, and corrections-related projects. Many jurisdictions view JAG as a foundational funding source for ongoing public safety investments.

• USDOT’s Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Program remained a highly competitive transportation funding opportunity moving into summer. Communities pursuing multimodal transportation projects, freight improvements, bridge rehabilitation, complete streets initiatives, and economic development infrastructure continued preparing applications ahead of expected deadlines. Projects demonstrating safety improvements, economic impact, and regional significance remain particularly competitive.

• EPA’s Drinking Water and Clean Water State Revolving Fund Programs continued to generate significant activity as states advanced infrastructure funding cycles. Although administered primarily at the state level, these programs remain among the largest sources of water and wastewater infrastructure financing available to local governments. Communities planning treatment plant upgrades, system expansions, water quality improvements, or regulatory compliance projects continued monitoring state funding schedules and project prioritization processes.

• Broadband Equity, Access, and Deployment (BEAD) Program implementation remained a significant topic for rural communities and state broadband offices. While much of the funding activity has shifted into state-led implementation phases, local governments, regional partnerships, and broadband providers continued monitoring project development opportunities and evolving federal guidance that may affect future deployment activities.

Grants Moved to Announced: April vs May

Useful Grant Education
Gov1: https://www.gov1.com/grants/maximizing-progress-through-grants
FireRescue1: https://www.firerescue1.com/fire-grant-center/fy2025-afg-updates-what-fire-and-ems-agencies-need-to-know-before-applying
Police1: https://www.police1.com/police-grant-center/dojs-300m-model-cities-initiative-what-police-leaders-need-to-know-to-compete

May 2026 Trend Spotlight

• FEMA / DHS – Homeland Security Grant Program (HSGP)
Federal | Homeland security / emergency preparedness / critical infrastructure protection
Supports state, local, Tribal, and territorial efforts to prevent, protect against, respond to, and recover from terrorism and other security threats. Funding may support planning, equipment, training, exercises, cybersecurity initiatives, intelligence sharing, critical infrastructure protection, and regional preparedness efforts. The program includes the State Homeland Security Program (SHSP), Urban Area Security Initiative (UASI), and Operation Stonegarden (OPSG). Annual funding exceeds $1 billion nationally.

• DHS/FEMA – State Border Security Reinforcement Fund (SBSRF)
Federal | Border security / law enforcement / interdiction / infrastructure
Supports state-led border security initiatives designed to reinforce security along the U.S. southern border. Eligible activities include construction or deployment of border barriers and buoys, site preparation for border infrastructure, detection and interdiction efforts, operational support, and certain relocation activities. The FY26 program provides approximately $9.99 billion nationwide and is intended to reimburse or support state border security investments made since January 2021. Eligible applicants are state governments, with opportunities for local and regional partners to participate through state-led initiatives. This is a significant opportunity for border states and jurisdictions involved in immigration enforcement, interdiction operations, and border security infrastructure. Closes: July 6, 2026.

• FEMA – Assistance to Firefighters Grant (AFG) Program
Federal | Fire services / emergency response / equipment and training
Supports fire departments and nonaffiliated EMS organizations seeking funding for equipment, apparatus, protective gear, training, communications systems, and operational readiness improvements. A strong opportunity for departments facing equipment replacement needs and increasing service demands. Applications for the 2026 cycle opened in May. Closes: June 22, 2026.

• FEMA – Staffing for Adequate Fire and Emergency Response (SAFER)
Federal | Public safety staffing / firefighter recruitment and retention
Supports career, combination, and volunteer fire departments seeking to increase staffing levels, improve response capacity, recruit volunteers, and strengthen long-term operational readiness. Applications for the 2026 funding cycle opened in May. Closes: June 22, 2026.

• FEMA – Fire Prevention and Safety (FP&S) Grants
Federal | Fire prevention / public education / firefighter safety
Supports projects that reduce fire-related deaths and injuries through public education, prevention initiatives, firefighter health and safety programs, and applied research. Particularly useful for departments pursuing community risk reduction strategies. Closes: June 22, 2026.

• HUD – Choice Neighborhoods Initiative
Federal | Community revitalization / housing redevelopment / neighborhood transformation
Supports comprehensive neighborhood revitalization efforts that connect housing improvements with economic development, public safety, transportation, education, and community services. Well-suited for communities pursuing long-term redevelopment and place-based investment strategies.

• EPA – Community Change Grants (Inflation Reduction Act)
Federal | Environmental justice / community resilience / neighborhood improvements
Supports community-driven projects that address environmental, public health, climate resilience, and quality-of-life challenges in disadvantaged communities. Eligible activities may include green infrastructure, energy improvements, workforce development, and community revitalization projects.

• USDA Rural Development – Water & Waste Disposal Loan & Grant Program
Federal | Rural water infrastructure / wastewater / stormwater systems
Supports drinking water, sanitary sewer, wastewater treatment, solid waste disposal, and stormwater infrastructure projects in eligible rural communities. Applications are accepted on a rolling basis and remain one of the strongest infrastructure funding opportunities for rural jurisdictions.

• HUD – Pathways to Removing Obstacles to Housing (PRO Housing)
Federal | Housing supply / zoning reform / community development
Supports local governments pursuing policy, planning, and implementation efforts that increase housing availability, reduce development barriers, modernize zoning, and expand affordable housing opportunities. Particularly relevant for fast-growing communities facing housing shortages.