Federal Grants Available to Municipalities
Cities, counties, townships, and tribal governments are eligible for a wide range of federal grant programs. These grants fund infrastructure, housing, environmental remediation, transportation, public safety, and community development. Unlike grants for nonprofits, municipal grants often come as formula allocations or through dedicated programs that only government entities can access.
This guide covers the major federal grant programs available to municipalities and provides tips for navigating the application process.
Community Development Block Grants (CDBG)
The Community Development Block Grant program, administered by the U.S. Department of Housing and Urban Development (HUD), is one of the oldest and largest sources of federal funding for municipalities. CDBG provides annual formula-based grants to entitled cities (generally those with populations over 50,000) and counties (urban counties with populations over 200,000). Smaller communities receive CDBG funds through their state's competitive "non-entitlement" program.
Eligible uses of CDBG funds include housing rehabilitation, public facilities improvements, infrastructure, economic development, and public services. At least 70% of funds must benefit low- and moderate-income persons. CDBG is flexible, which is part of its value: municipalities can direct funds to their highest-priority community development needs within HUD's broad guidelines.
EPA Water and Brownfields Grants
The Environmental Protection Agency administers several grant programs directly relevant to municipalities:
- Clean Water State Revolving Fund (CWSRF): Provides low-interest loans and some principal forgiveness for wastewater treatment, stormwater management, and nonpoint source pollution projects. Funds flow through state agencies.
- Drinking Water State Revolving Fund (DWSRF): Funds drinking water infrastructure improvements including treatment plants, distribution systems, and storage facilities.
- Brownfields Grants: EPA Brownfields grants fund the assessment, cleanup, and redevelopment of contaminated properties. Municipalities can apply for assessment grants (to investigate contamination), cleanup grants (to remediate sites), and revolving loan fund grants (to capitalize local cleanup lending programs).
- Environmental Justice Grants: Fund projects in communities disproportionately affected by environmental hazards. Municipalities and tribal governments are eligible applicants.
DOT RAISE Grants
The Department of Transportation's RAISE (Rebuilding American Infrastructure with Sustainability and Equity) program funds surface transportation infrastructure projects. Municipalities, counties, transit agencies, and tribal governments can apply. RAISE is competitive and typically oversubscribed, but the awards are substantial. Projects can include road and bridge construction, transit improvements, pedestrian and bicycle infrastructure, freight rail, and port improvements. Applications are evaluated on safety, environmental sustainability, quality of life, economic competitiveness, mobility, and community connectivity.
HUD HOME Investment Partnerships Program
The HOME program provides formula grants to states and participating jurisdictions (cities and counties) to fund affordable housing activities. Eligible uses include building or rehabilitating affordable rental housing, providing homebuyer assistance (down payment and closing cost help), and funding tenant-based rental assistance. Participating jurisdictions must match 25% of HOME funds with non-federal resources and must commit HOME funds within 24 months of allocation.
FEMA BRIC (Building Resilient Infrastructure and Communities)
FEMA's BRIC program funds hazard mitigation projects that reduce risk from natural disasters before they occur. Eligible applicants include state, local, tribal, and territorial governments. Funded activities include infrastructure hardening, flood mitigation, wildfire risk reduction, and community resilience planning. BRIC uses a competitive process with an emphasis on projects that demonstrate high benefit-cost ratios and address climate adaptation.
USDA Rural Development Grants
For municipalities in rural areas (generally communities with populations under 50,000), USDA Rural Development offers several grant programs:
- Community Facilities Grants: Fund essential community facilities such as fire stations, community centers, hospitals, and public buildings in rural areas.
- Water and Waste Disposal Grants: Fund water and wastewater systems in rural communities with populations under 10,000.
- Rural Business Development Grants: Fund projects that support small and emerging business development in rural areas.
Tips for Municipal Grant Applicants
Municipal grants have their own dynamics. These tips apply across most federal programs:
- Start with your Consolidated Plan: If you are a CDBG entitlement community, your Consolidated Plan already identifies priority needs. Aligning grant applications with your Con Plan strengthens both documents.
- Check your SAM.gov registration: All federal grant recipients must have an active registration in SAM.gov (System for Award Management) with a current UEI (Unique Entity Identifier). Registration can take several weeks, so do not wait until a deadline is approaching.
- Build relationships with federal program officers: Program officers at HUD, EPA, DOT, and FEMA can clarify eligibility questions and provide guidance on competitive applications. Contact them early in the process.
- Document local match early: Many federal programs require a local match (typically 20-25% of the total project cost). Identify your match sources before you apply. Common match sources include local tax revenue, in-kind contributions, state grants, and philanthropic funding.
- Coordinate across departments: Municipal grant applications often require input from planning, public works, finance, and elected officials. Start the internal coordination process well before the deadline.
- Track federal notices of funding opportunity (NOFOs): Federal agencies publish NOFOs on Grants.gov. Set up email alerts for the programs relevant to your community so you have maximum lead time for applications.
Find Grants for Your Municipality
FindGrants matches your municipality's profile against available federal, state, and foundation funding opportunities. Enter your government type, priority areas, and location to see which grants your community qualifies for. Search available grants to start building your funding pipeline.