In recent years, funding for many programs has been reduced or even eliminated, and there remains considerable scrutiny of federal spending programs. Other efforts have focused on decentralizing the grant process. Many in Congress advocate giving greater authority and flexibility to the states. The result is an increase in Block Grants awarded to the states.
States receive funding based on formulas and distribute the funds to eligible projects.
The federal government has reduced funding for many grant programs. In some instances, direct loans and often guaranteed loans, may be available to support projects. When grants are available, they almost always require a local match. The reality of smaller government, less taxes, and balanced budgets, is a more do it yourself environment. While considerable opportunity remains to attract federal assistance in community development initiatives, the application process for existing grant programs has become more competitive.