Continuation grants fund the ongoing phases of multi-year projects that were initially awarded competitively. Rather than requiring a full new competitive application each year, continuation grants allow recipients to receive subsequent-year funding by demonstrating satisfactory performance against the goals established in the original award. Most federal research grants — NIH R01 awards, for example — are structured as multi-year project periods with annual continuation funding contingent on progress reports and budget reviews. The continuation process is less burdensome than an initial competition, but it is not automatic. Program officers review annual progress reports, and agencies can withhold or reduce continuation funding if a project falls behind its milestones, has financial compliance issues, or no longer aligns with agency priorities. For organizations managing active federal grants, continuation funding is their most immediate source of renewable federal revenue and deserves careful reporting and stewardship. Understanding what triggers a continuation vs. what would require a new competitive application is an important aspect of federal grants management.
Frequently Asked Questions
How do continuation grants differ from new competitive grants?
A continuation grant extends an existing award to cover subsequent years of an already-approved project period. The initial competitive selection has already occurred — the continuation is essentially a renewal of that award based on satisfactory progress. A new competitive grant requires a full application, peer review, and selection from scratch. Continuation funding is typically processed faster, requires less documentation, and has a higher approval rate than new competitions, as long as the recipient is performing well against the approved project plan.
What do agencies look for in continuation progress reports?
Agencies typically review whether the project is meeting the specific aims or milestones approved in the original award, whether spending is on track with the approved budget, whether key personnel are still in place, and whether any significant changes to scope or personnel have been disclosed and approved. NIH requires an annual Research Performance Progress Report (RPPR) submitted through eRA Commons. NSF requires annual reports in Research.gov. Failure to submit timely, complete progress reports can result in suspension of future payments.
Can continuation funding be reduced or terminated?
Yes. Agencies retain the authority to reduce, withhold, or terminate continuation funding if a recipient fails to make satisfactory progress, submits incomplete reports, has financial management deficiencies, or if the agency's budget is cut. Reduction of continuation funding is relatively rare for well-performing grants but is used when specific milestones have not been met. Termination is typically reserved for serious compliance failures. Recipients who anticipate a problem — a key investigator leaving, a technical challenge, a budget shortfall — should communicate proactively with their program officer before the issue affects performance.
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Last Reviewed: May 2026 ·
Data Methodology