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What Are Federal Grants? A Complete Guide to Understanding and Winning Them

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by Japheth Oseghale
January 29, 2025
 What Are Federal Grants? A Complete Guide to Understanding and Winning Them

Federal grants are a treasure trove of opportunity for nonprofits, businesses, and organizations looking to make a big impact. Unlike state or foundation grants, these come straight from Uncle Sam and often support large-scale programs in public policy, health, education, and more.

The catch? They come with a side of paperwork and a bit more elbow grease! But don’t worry—this guide will break down everything you need to know about federal grants, from who offers them to how you can land one for your organization.

What Exactly Are Federal Grants?

Federal grants are financial awards given by the national government to fund initiatives that align with its goals. These are often administered through powerhouse agencies like the U.S. Department of Health and Human Services (HHS) or the National Science Foundation (NSF). Whether it's boosting renewable energy efforts or improving access to healthcare in rural areas, federal grants focus on the big picture.

More of a visual learner? Check out coach Haleigh’s video on federal grants below.

Busting the “Too Hard” Myth

Let’s address a common misconception: many people think federal grants are impossible to win. The truth? They’re not inherently harder than state or foundation grants—they just require more time, detail, and organization. Think of them as a marathon, not a sprint. The extra effort is worth it when you’re chasing potentially millions in funding.

Even our founder, Meredith Noble, has a soft spot for federal grants. Why? Because once you understand the process, they become a reliable and lucrative funding source. With our free grant writing course, you can discover if grant writing fits you as a career.

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The Major Players in Federal Grant Funding

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If you want to win federal grants, it helps to know who’s handing out the cash. Here are five key agencies to keep on your radar:

  1. Housing and Urban Development (HUD)
    • Focus: Homelessness, affordable housing, and community development.
    • Perfect for: Organizations tackling housing instability.
  2. Department of Energy (DOE)
    • Focus: Renewable energy, climate change tech, and energy efficiency.
    • Perfect for: Innovators passionate about saving the planet.
  3. U.S. Department of Education (ED)
    • Focus: Teacher training, student support, and educational equity.
    • Perfect for: Programs aimed at improving education outcomes.
  4. U.S. Department of Agriculture (USDA)
    • Focus: Rural development, food security, and agricultural innovation.
    • Perfect for: Organizations working on rural or food-related projects.
  5. Department of Justice (DOJ)
    • Focus: Public safety, criminal justice reform, and victim services.
    • Perfect for: Groups addressing justice and community safety.

There are plenty of other agencies, but these five provide a great starting point for your federal grant search.

Types of Federal Grants: Not All Dollars Are the Same

Federal grants come in several flavors. Here’s a quick rundown:

  • Block Grants Think of these as flexible funding for states and local governments to use within specific categories, like health or housing.
  • Discretionary Grants These are competitive, so your proposal needs to shine. It’s a “best idea wins” situation, so bring your A-game.
  • Mandatory Grants If you meet the criteria, you’re in. These are more predictable, like scholarships based on GPA.
  • Formula Grants Funding is based on predetermined criteria like population or income levels. If you qualify, you get the funds.
  • Cooperative Agreements Unlike regular grants, these involve close collaboration with the government agency funding your project.

Knowing the type of grant you’re applying for can save you time and help you focus your efforts. If you’re feeling lost in the types of federal funding, you can check out coach Haleigh’s video on navigating federal grants, what you need to know.

Where to Find Federal Grant Opportunities

Federal grants are often listed on Grants.gov, the ultimate one-stop-shop for funding opportunities. But navigating the site can feel like wandering through a maze of acronyms—NOFO, HUD, USDA—it’s overwhelming, even for seasoned professionals.

Grants.gov has a really high ceiling of usability, but the complexity level is just as high. Grants.gov isn't for the faint of heart, it’s a bit clunky and overwhelming, like most things government related. But, with a few tricks, you’ll be navigating it like a pro in no time.

Pro Tips for Grants.gov

  • Use search filters to narrow your options by category (e.g., housing, education, renewable energy).
  • Read NOFOs (Notices of Funding Opportunities) carefully—they contain all the details you need to know.
  • Don’t forget individual agency websites! Sometimes, they post opportunities not listed on Grants.gov.

Before you apply, make sure your organization is set up with a Unique Entity Identifier (UEI) and registered on SAM.gov (System for Award Management). This is a non-negotiable step for federal grants. Check out other bonus tips and the four things you should never do when applying for federal grants in coach Haleigh’s video here.

Free Grant Budget Template

If preparing a grant budget scares you, those days are about to be over! Download the free grant budget template below and take our free grant writing class to learn how to use it.

Free Grant Writing Class

Collaborate for Success: Don’t Go It Alone!

Federal grants are a team sport. Bringing in partners or subcontractors can make all the difference in your application’s success. Whether it’s hiring a budget expert, a program evaluator, or another grant writer, teaming up helps lighten the workload and increases your chances of winning.

At the Global Grant Writers Collective, we teach grant writers how to collaborate, boosting their odds of success while making the process more manageable. Bringing on other grant writers with specialized knowledge is a good way to boost your chances of winning. We also provide you with effective grant writing resources and templates, so you don’t have to start from scratch.

How Much Should You Charge for Federal Grant Writing?

Woman at her desk filling out a notebook

A frequent question from grant writers is, “How much should I charge for federal grants?” Spoiler: it’s more than you think!

One of our members, Fizer, thought charging over $5,000 was crazy. We encouraged her to set her minimum at $16,000 for complex healthcare and education grants. Within 30 minutes of sending her proposal, it was signed. She now charges a minimum of $22,000—plus a few thousand more for support services like editing and gathering attachments.

Remember, federal grants are labor-intensive, and your expertise is valuable. Don’t undervalue your skills or time. Federal grants can be a fantastic opportunity, but they do require some strategy.

By knowing where to look, using the right resources, and collaborating with experts, you can navigate the process and land the funding you need to make a global impact. Fortunately, with the current advent of AI, you don’t have to rack your brain and spend prolonged hours on federal grants like before. Learn to leverage AI with our simplified AI toolkit!

Why Federal Grants Are Worth It

Federal grants might seem intimidating, but they offer some of the most significant funding opportunities out there. Yes, they require effort and strategy, but the payoff is enormous—not just in dollars, but in the impact you can make.

With the right approach and resources, you can demystify the process and start landing federal grants that take your organization’s mission to the next level.

Your Next Steps: Join the Global Grant Writers Collective

If you’re ready to dive into the world of federal grants but feel like you need a guide, the Global Grant Writers Collective has your back. We offer comprehensive training, coaching, and resources to help you succeed.

Here’s how we can help inside the Collective:

  • Expert curriculum: Jump into our federal grant training. Leverage content with our curriculum on what grants to pursue and you’ll get a roadmap for what federal grants will yield the highest likelihood of success.
  • Expert Resources: Download templates like our federal grants budget template and much more.
  • Professional Coaching: Learn how to write winning proposals, price your services, and collaborate effectively.

Federal grants might feel like an ocean, but with the right map and community, you’ll be reeling in the big fish in no time. Don’t let the maze of acronyms or the fear of complexity hold you back! Get our AI Toolkit today and take the first step toward turning federal grant opportunities into real-world impact.

About the author...

Japheth Oseghale is a licensed pharmacist with a passion for public health and storytelling. Leveraging his professional training in research, he crafts compelling grant narratives that drive positive change for nonprofits and for-profit businesses. Japheth unwinds with a good book in his free time and cherishes meaningful conversations with loved ones.

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