Streamlining Federal Grants Act: Improving Federal Grants Access for Counties

Key Takeaways

Federal grant programs represent significant funding opportunities for counties, but accessing them is often filled with barriers, especially for smaller and rural communities with limited staff and resources.  NACo endorsed the Streamlining Federal Grants Act (S.3709), which simplifies the federal grants process through interagency coordination and updating grant systems and processes.

Why the current federal grants system is difficult to navigate:

• Fragmentation of federal programs: Federal assistance is widespread across various departments, subagencies, offices and programs. This makes it hard for counties to find the right  funding tool for a given project and creates coordination gaps between agencies. 
• Lack of technical assistance: Notice of funding opportunities can be very long with technical jargon that is hard to understand. Agencies often require applicants to go through dozens of pages of technical language just to determine their eligibility.

• Capacity limitations: Smaller and rural counties may lack dedicated grant writers or administrative staff to sort through the complex grants system. This may put them at a structural disadvantage compared to larger jurisdictions, causing communities to miss out on funding because they lack the bureaucratic or technical expertise to apply.

• Additional administrative burdens: Even after counties successfully secure a grant, maintaining funding may present additional challenges. Compliance and reporting requirements may pose additional administrative burdens that strain already limited capacity.

What it costs in practice:

• Counties with limited capacity, particularly rural ones, are often unable to compete for federal dollars they are fully eligible to receive
• Inconsistent processes across federal agencies make it difficult to develop replicable efficient systems for grant management at the county level
• Inefficient grant processes and limited interagency coordination impose unnecessary delays, increase administrative and financial costs and hinder counties' ability to deliver timely projects to meet community needs

The Solution: The Streamlining Federal Grants Act

Reintroduced in January 2026 by Sen. Gary Peters (D-Mich.) and Sen. James Lankford (R-Okla.), the bipartisan Streamlining Federal Grants Act aims to modernize the federal grant system and level the playing field for counties of all sizes.  The bill was referred to the U.S. Senate Committee on Homeland Security and Governmental Affairs and awaits committee action.

What it does:

• Establishes a Grants Council composed of senior officials from every federal agency that distributes grants tasked with simplifying applications, improving reporting systems and coordinating grant policy across agencies
• Requires each federal agency to designate a senior agency official for grants responsible for grant policy, management and interagency coordination. The list of senior agency officials for grants would be publicly listed.
• Mandates that agencies simplify their application processes by: 
  • Writing funding opportunities in plain language that non-grant professionals can understand
  • Providing a summary of each funding opportunity in 500 words or less
  • Updating software systems to reduce technical barriers
  • Offering information on available training and technical assistance
• Directs agencies to identify and address barriers that prevent smaller and underserved communities from participating in federal grant programs

What it means for counties:

• Reduced time and staff resources spent deciphering complex applications
• More opportunities for small and rural counties to compete for federal dollars on a level playing field
• Greater consistency and coordination across federal agencies to get appropriated funding out the door more efficiently and enable counties to develop replicable grant management processes
• Improved access to training and technical assistance for communities that have historically been left out of federal funding streams

The Streamlining Federal Grants Act simplifies the grant application process by promoting interagency coordination, simplifying language used in grant applications and reducing barriers communities might face in accessing federal grants. 

Take Action

NACo supports the Streamlining Federal Grants Act and is urging county leaders to engage their federal delegations:

• Senators: Urge your senators to support S. 3709 and press for committee action and floor consideration
• Representatives: Urge your U.S. House member to introduce companion legislation so the House can move in parallel with the Senate.

Resources to learn more:

• Communities Rely on Federal Grants, But May Have Challenges Accessing Them | U.S. GAO
• Streamlining the Federal Grant Process to Empower Small Communities
• Make Federal Funding More Accessible: Support the Streamlining Federal Grants Act - National League of Cities