Key Takeaways
- Most domestic grant programs survived — NIH, NSF, USDA, DOE, SBA, HUD, and FEMA all issuing new awards through 2026
- What was cut: foreign assistance (USAID), DEI-specific supplements, select climate justice programs, and international exchange programs
- New opportunities opened: SBA Made in America manufacturing grants ($50M), Commerce Dept AI workforce grants ($25M), USDA rural broadband ($44M)
- Strategy shift: frame applications around economic impact, workforce, infrastructure, and national security — not equity or climate justice framing
The Real Picture
The headlines about federal grant terminations in 2026 scared a lot of organizations away from federal funding at exactly the wrong moment. While the disruptions were real and significant for specific sectors, the federal grant system did not collapse. Grants.gov still lists thousands of active opportunities. NIH is still funding research. NSF is still funding science. USDA is still funding rural communities. The key is knowing which programs to pursue — and which to avoid — given the new political landscape.
Programs That Survived — By Agency
NIH — Research Funding Continues
NIH's core research grant mechanisms — R01, R21, R35, K-series career awards, and SBIR/STTR — continued operating through 2026 with new FOAs issued across all 27 institutes. The areas of strongest continued investment: cancer research (NCI ~$7.6B), infectious disease and pandemic preparedness (NIAID ~$6.5B), Alzheimer's (NIA $3.5B+), cardiovascular disease (NHLBI), and mental health (NIMH). The peer review process and award timelines were unaffected for the large majority of applications.
NSF — Science and Innovation Funding Intact
NSF's entire grant portfolio — CAREER awards, Major Research Instrumentation (MRI), standard research grants, and Graduate Research Fellowship Program (GRFP) — continued without significant disruption. NSF saw increased prioritization of AI research ($700M+), quantum information science, and semiconductor research aligned with national competitiveness goals. Researchers whose proposals focus on scientific merit and technological innovation faced no meaningful headwinds.
USDA — Rural America's Funding Stream Stable
USDA rural development programs — among the most important funding sources for rural nonprofits, cooperatives, and local governments — operated normally. Community Facilities grants and loans, Water and Waste Disposal programs, ReConnect broadband grants, and the Value-Added Producer Grant (VAPG) program all continued. USDA's Rural Development mission aligned well with 2026 policy priorities around infrastructure and rural economic recovery.
DOE — Energy and Science Funding Active
Department of Energy grant programs remained highly active, particularly for energy production, grid reliability, critical minerals, and nuclear energy — all priority areas. DOE's Office of Science continued all basic research programs. ARPA-E continued its high-risk, high-reward energy technology investments. Programs specifically labeled as "clean energy" or "climate" required more careful framing in applications, but the underlying technology work continued to receive funding.
SBA — Small Business Programs Expanded
Not only did SBA programs survive — they expanded. The SBA announced a new $50 million Made in America manufacturing grant program in May 2026, the first SBA grant specifically for domestic manufacturing workforce training. SBIR/STTR programs across all participating federal agencies continued with three annual receipt cycles. Small Business Development Center (SBDC) grants and Women's Business Center grants also continued.
HUD — Community Development Block Grants Continue
HUD's formula-based CDBG allocations to states and entitlement communities continued as congressionally mandated. HOME Investment Partnerships grants also continued. These programs have broad bipartisan support and explicit congressional appropriations that make them more resistant to executive discretion. Local governments receiving CDBG formula allocations can generally plan on those funds continuing.
| Agency / Program | Status | Annual Funding |
|---|---|---|
| NIH R01/R21/SBIR research | Active | ~$47B total NIH |
| NSF research & CAREER awards | Active | ~$9.9B |
| USDA rural development | Active | ~$5B+ programs |
| DOE Office of Science | Active | ~$8.1B |
| ARPA-E | Active | ~$450M |
| SBA SBIR/STTR | Active + Expanded | ~$4B+ across agencies |
| HUD CDBG | Active | ~$3.3B |
| FEMA Hazard Mitigation | Active | Variable |
| DOD SBIR/basic research | Active | ~$15B+ R&D |
| USAID foreign assistance | Mostly terminated | N/A |
| DEI-specific supplements | Cut | N/A |
New Programs Launched in 2026
Amid the cuts, the 2026 environment also produced new funding opportunities that many organizations missed because they were watching the bad news:
- SBA Made in America Manufacturing Grants ($50M) — workforce training for domestic manufacturing, announced May 2026. Targets small manufacturers and training providers supporting reshoring.
- Commerce Department AI Upskill Accelerator ($25M) — workforce training grants for AI skills, announced May 2026. Open to community colleges, training organizations, and industry partners.
- USDA Rural Broadband (Community Connect + Distance Learning) ($44M) — deadlines in June/July 2026 for rural connectivity projects.
- CISA State and Local Cybersecurity Grant Program ($91.75M) — for state, local, tribal, and territorial governments to improve cybersecurity posture.
How to Frame Your Application in 2026
Grant writing strategy matters more than ever in the current environment. The framing of your application — not just the substance — affects how program officers and reviewers engage with it. Several principles have emerged from successful 2026 applications:
Lead with economic and workforce impact. Applications that articulate their work in terms of jobs created, economic output, workforce development, and domestic competitiveness have fared better than those centered on equity or environmental justice language alone. This does not mean abandoning the work — it means translating it into the current language of federal priorities.
Emphasize national security and competitiveness. Research and development grants, particularly at NSF and DOD, respond well to framing that connects the work to U.S. technological leadership, supply chain resilience, or critical infrastructure. SBIR applications should emphasize dual-use potential where applicable.
Use the statutory language of the program. When applying for a congressionally mandated program like CDBG or USDA Community Facilities, anchor your application in the statutory criteria. Programs with explicit congressional authorization are more insulated from executive policy shifts.