ARPA is Almost Over, Now What?

Despite most organizations having grant fatigue, now is a critical time to leverage the COVID-19 grants management systems and structures. Strengthening grants capacity might seem daunting after the past four years but seizing the opportunity now will set your organization up for success in the future. 

Shifting your grants office’s focus from COVID-19 recovery to regular grants requires several strategic steps to ensure a seamless and effective transition. Below are some guidelines to help you through this process: 

1. Assessment and Review

• Evaluate Current Grants: Evaluate all ongoing grants—including COVID-19 recovery grants—to understand their status, requirements, and deadlines. Identify which grants are continuing and which are nearing close-out. The Coronavirus State & Local Fiscal Recovery Funds (SLFRF) program as an example must be obligated by December 31, 2024, and fully expended by December 31, 2026. 

• Review Outcomes and Impact: Analyze the outcomes and impact of COVID-19 recovery grant-funded programs to understand successes, challenges, and areas for improvement. Evaluate which processes worked well and identify areas needing improvement for future initiatives. 

2. Strategic Planning 

• Develop a Transition Plan: Create a detailed transition plan outlining the timeline, objectives, and key activities necessary to shift from COVID-19 recovery grants to other grant programs. Consider leveraging administrative and indirect cost funding from existing COVID-19 grants to support items in the transition plan. 

• Set Priorities: Establish priorities for future grants based on organizational goals, funding opportunities, and community needs. Take advantage of current infrastructure funding opportunities to secure new funding and resources for your community. 

3. Staff Training and Development

• Provide Training: Conduct training sessions for staff to update their skills and knowledge on grant management best practices, including new regulations and compliance requirements. This includes recent revisions to Uniform Guidance, updated standards for Davis-Bacon and the National Environmental Policy Act (NEPA), as well as program-specific requirements like the Build America Buy America Act.

• Reallocate Roles and Responsibilities: Adjust roles and responsibilities to ensure that staff are focused on critical aspects of ongoing grant management, particularly transitioning from administering formulaic grant funds to competing and managing discretionary/competitive grants. 

4. Update Policies and Procedures

• Revise Policies: Update grant management policies and procedures to reflect the transition from COVID-19 recovery to other grant funding sources and programs. Ensure they are aligned with current best practices and regulatory requirements. Given that COVID-19 recovery funds from the U.S. Department of the Treasury did not require things like NEPA, Davis-Bacon, or large portions of the Uniform Guidance, it’s important to ensure that these requirements are known, documented, and implemented in future programs, as applicable. Policies and procedures written during this time are likely missing information about these requirements or are now outdated.

• Standardize Processes: Establish standardized processes for the application, management, and reporting of future grants to ensure consistency and efficiency. It is critical to have documented policies and ensure their consistent application and adherence. Most organizations are weak in at least one of these areas. 

5. Engage Stakeholders

• Communicate with Funders: Share your transition plans with current and potential funders, outlining how you will continue to meet their expectations with ongoing and future grants. While direct outreach is typically limited to foundation funders, ensure that new grant applications describe your transition and the establishment of a permanent grants management capacity. 

• Collaborate with Partners: Involve community partners, collaborators, and beneficiaries to align your grant focus with their needs and priorities. The ultimate goal is to bring new resources into your community, regardless of who is the grantee. Often, non-governmental partners are best positioned to apply for and receive various grants. 

6. Funding Opportunities and Applications 

• Identify New Opportunities: Conduct research to identify new funding opportunities that align with your organization’s mission, vision, and strategic priorities. Subscribe to grant alerts and attend relevant webinars and conferences. Transitioning from formulaic funds to discretionary grants will require effort but will pay significant dividends in the future. Once initial research is completed in the first year, ongoing maintenance becomes more manageable due to the consistent grant opportunity calendars. 

• Develop Competitive Proposals: Invest time in developing compelling, competitive grant proposals that clearly articulate your organization’s mission, goals, and impact.  While strong grant applications are crucial, it is equally important to ensure projects align with your organization’s mission and are well-matched with the appropriate funding opportunities. 

7. Strengthen Compliance in Financial Management 

• Ensure Compliance: Strengthen internal controls and compliance mechanisms to meet the often-stringent requirements of grants. Non-COVID-19 grants typically require significant effort in compliance, both pre- and post-award. 

• Optimize Programmatic and Financial Reporting: Enhance reporting processes to ensure accuracy, transparency, and accountability. The future of federal financial assistance emphasizes evidence-based interventions and outcome-based performance measurement. Many organizations are currently unprepared for these new requirements, so investing now for the remaining years of SLFRF reporting will yield significant benefits in the future. 

8. Monitor and Evaluate

• Implement Monitoring Systems: Establish robust monitoring systems to track the progress and performance of all grant programs. While not all Treasury funding requires traditional vendor and subrecipient relationships, it’s likely that future grants will.  Monitoring enables early issue identification, problem-solving, and the identification of emerging trends and best practices. 

• Evaluate Impact: Continuously assess and evaluate the impact of your grants to showcase success and inform future funding strategies. Moving forward, funders will prioritize projects that are accurately measured and can be replicated in other communities. Position your grant office to become a go-to organization for funders seeking continued partnership and investment. 

The key to achieving these objectives is establishing key performance indicators (KPIs) to measure the impact of your grant office over time. Measures such as: 

• Increase in number of applications submitted

• Increase in number of grants awarded (resulting in increased revenue)

• Increased winning percentage

• Expansion of funding sources and funded community partners (diversified grant portfolio)

• Enhanced transparency and engagement with public stakeholders  

These measures will help gauge your organization’s success and justify additional investments over time. By following these steps, you can effectively transition your grants office from a focus on COVID-19 recovery to future grants—thereby ensuring sustained success and impact in your grant management efforts. 

Many jurisdictions implemented similar strategies a decade ago following the housing crisis and the influx of the American Recovery and Reinvestment Act (ARRA) funding. As a result, these jurisdictions were better positioned to take advantage of the financial assistance when COVID-19 hit. Now is an opportunity to learn from these experiences and position your community to capitalize on current and future funding opportunities. 

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