A practical guide to grants for local governments, federal funding for cities and counties, state programs, and how municipalities compete for grants.
2025–2026 STATUS UPDATE: HUD homelessness programs (CoC, ESG) are currently subject to active policy disputes and litigation. The administration’s FY 2027 budget proposes eliminating CoC and expanding ESG. Verify current program status at HUD.gov.
Cities, counties, and other local governments are eligible for substantial federal grant funding across nearly every domain, public safety, housing, transportation, water, energy, public health, recently expanded by infrastructure and climate legislation.
TL;DR: Quick Answers
- Who funds local governments? Most federal agencies (HUD, DOT, EPA, DOJ, DOE, USDA, HRSA, ED), state pass-through, foundations (less commonly).
- Who can apply? Cities, counties, special districts, regional planning bodies.
- What gets funded? Infrastructure, public safety, housing, climate, public health, community development, transportation, water/wastewater.
- What’s the biggest opportunity? Recent BIL/IRA-funded federal programs plus traditional HUD, DOT, USDA, and EPA funding.
Federal Funding
HUD for CDBG, HOME, ESG, CoC, Choice Neighborhoods, and lead programs.
DOT for RAISE, Reconnecting Communities, Safe Streets and Roads for All, transit, and FAA airport programs.
USDA for rural development, community facilities, water/wastewater, broadband.
EPA for water (CWSRF, DWSRF), environmental justice, climate pollution reduction.
DOE for energy efficiency and climate.
DOJ for public safety (Byrne JAG, COPS, CVIPI, Project Safe Neighborhoods).
FEMA for emergency preparedness and resilience.
HRSA for local health departments.
CDC for public health (PHEP, REACH, prevention).
State Funding
State-administered programs flow significant federal pass-through and state funding to localities, see pass-through grants.
Foundation Funders
Less common for direct municipal funding (foundations often prefer nonprofits), but some support exists:
- Bloomberg Philanthropies (climate, public health).
- Kresge Foundation (cities).
- JPB Foundation.
- Community foundations sometimes partner with cities.
What Gets Funded
- Infrastructure (transportation, water, broadband).
- Public safety and violence prevention.
- Housing and community development.
- Climate and energy.
- Public health.
- Workforce development.
- Emergency preparedness and resilience.
- Parks, recreation, libraries.
Tips for a Competitive Application
- Address local plans (Consolidated Plan, climate plan, transportation plan, hazard mitigation plan).
- Build cross-departmental coalitions. Many federal programs require interdepartmental coordination.
- Address equity (Justice40 priorities for relevant programs).
- Plan for cost share and match.
- Demonstrate management and reporting capacity.
How Grantboost Helps
Municipal funding spans the entire federal government plus state and foundation sources. Grantboost continuously surfaces scored, mission-matched opportunities and drafts in your jurisdiction’s voice (see training AI on your past proposals).
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Read next:
- Federal vs. Foundation vs. State Grants
- HUD Grants: A Guide to Department of Housing and Urban Development Funding
- DOT Grants: A Guide to Department of Transportation Funding
Further Reading
- Department of Transportation grants
- EPA grants
- HUD CDBG entitlement program
- USDA Rural Development
- Grants.gov (federal funding portal)
Disclaimer: Grant programs, eligibility rules, deadlines, and policies vary by region and change frequently. The information in this article is for general informational purposes only and may not reflect the current rules in your area. Always consult a local grant writer or qualified expert in your region for advice specific to your organization, project, and jurisdiction.