Getting to Yes on Your Grant Agreement
October 28, 2024

Congratulations on your award! All of the hard work that went into the application phase has paid off, and you are ready to get started on your project. But before you pick up the metaphorical shovel, there are several steps you will need to take in order to finalize your grant agreement and receive your funds. 

Below are eight strategies that you can use to streamline your grant agreement process:

1. Prepare in advance for documents you know you will need

Many federal grants require the same or similar documentation, so there are some items you can begin to prepare as soon as you learn about your award. The DOT Project Readiness Checklist (PDF version) has more detail on how to prepare for many of these requirements and documentation requests. The U.S. DOT Project Delivery Center of Excellence also provides information about how to support community engagement, conduct environmental reviews, and ensure compliance with equity and civil rights laws. The project delivery center also has many resources that will be helpful in the implementation and evaluation phases of your project life cycle. 

If applicable, cities should start preparing for any grant that is subject to National Environmental Policy Act (NEPA) review as soon as possible by first determining  the level of environmental review required for their project, as this varies significantly and impacts timelines. Engaging an environmental consultant or coordinating with state environmental officers and gathering preliminary data early to streamline documentation can also be helpful. Being proactive with NEPA ensures that environmental reviews don’t hold up the grant agreement and project start.

Because many aspects of grant agreements are the same across programs, some cities have found it helpful to hire an experienced consultant to help them navigate the process.

2. Start the project planning process and be ready to provide a detailed budget 

Cities will most likely be asked to provide additional budget details in advance of their grant agreement. While the exact forms vary by grant and grant size, most budget details templates will ask for costs in various categories (travel, equipment, supplies, contracts, etc.), including those related to personnel (salaries and fringe benefits). You can review budget templates that are publicly available for Safe Streets for All (SS4A) and Strengthening Mobility and Revolutionizing Transportation (SMART) to get a sense of the kinds of information usually required. 

Beginning the planning process, especially decisions about who will be working on the grant project, directly after the award announcement will help your team to be ready to complete these documents. However, make sure that your planning process isn’t impeding your contract process; while it is best practice to undertake initial program management steps like internal organizing and hiring key personnel, if necessary these steps can wait in an environment where finalizing the grant agreement contract is urgent.

For grants that have a non-federal match requirement, you will be asked to confirm the source of the matching funds as part of your agreement. This planning process is also a good time to prepare for amendments or adjustments to your city’s annual budget if they are needed to meet local match requirements. See additional information in strategy 3 below.

3. Budgeting and financial readiness 

Federal grants often operate on a reimbursement basis, which can create challenges for cities that need to identify matching funds upfront. To avoid delays, consider the following strategies for early financial planning:

Pre-Identify Matching Funds: Explore ways to prepare for the match requirement in advance, such as setting aside a contingency or placeholder in the city budget for potential grants. While the award isn’t yet certain, budgeting for potential matches can help expedite the process if a grant is secured.

Leverage In-Kind Contributions: If grant guidelines allow, consider using in-kind contributions, such as staff time, to meet match requirements. For example, if city staff will support the grant project, allocate their salaries or a portion of their time toward the match instead of requesting grant funding for these costs. This approach helps preserve cash and maximizes your grant funding for other critical expenses. Work with your grant administrator to confirm eligibility and establish a system to document these contributions effectively.

Bridge Financing Options: Look into interim financing solutions to cover project costs while waiting for grant reimbursements. This may include short-term loans or collaboration with local financial institutions. Establishing these options ahead of time can help your city manage cash flow and start projects promptly.

Future Budget Commitments: If immediate funding isn’t available, consider working with city council and finance officials to commit matching funds in a future budget cycle. This approach allows your city to meet the match requirement without an immediate outlay. Coordinating with your finance office and legal advisors can help ensure the commitment aligns with grant requirements.

4. Get pre-approval from city council and other key decision makers, if possible

If there are items related to the grant agreement requirements described in strategies 1-3 above that require city council approval, getting that ahead of time can reduce the time your city needs to sign the grant agreement once it is finalized by the granting agency.

5. Build flexibility into the process

There is no getting around that some grant agreements, especially those for new programs, will take a while to finalize. For this reason, it can be helpful to plan ahead for the possibility of project schedule and cost adjustments (i.e., if the cost of a good or service has changed between the application submission and grant agreement) and be prepared to make these adjustments if necessary.

To help your project more forward more flexibly, consider discussing phased funding options with the awarding agency. Phased funding allows cities to begin implementing certain portions of the project sooner, even as other components await necessary approvals and meet additional prerequisites.This approach can prevent delays, make efficient use of time and resources, and ensure that critical early steps are completed on schedule.

6. Don’t be afraid to reach out to the granting agency early, and try to take full advantage of every touchpoint

Being proactive by reaching out to the funding agency as soon as possible after you learn about your award will avoid delays in initiating the grant agreement process. This will also make it possible for you to request all of the paperwork that you need to fill out prior to completing the grant agreement. If the granting agency is one that has state or regional offices, for example the Environmental Protection Agency or Department of Transportation, you can also reach out to your contacts there, as the regional offices can provide an additional level of support for your grant award process. 

Don’t be afraid to ask all of your questions at once when you first reach out to the granting agency and in any subsequent communications. This can condense the timeline for getting all of your questions answered and preparing to submit all of your documentation. 

Likewise, require all relevant city staff involved with the project to be party to calls with the granting agency. This can allow folks to ask and answer questions as they arise from the granting agency and minimize the need for follow-up.

When you do submit documentation, best practice is to complete and submit all documentation together. It is important to follow the granting agency’s instructions carefully. Submitting documentation as a full package and as soon as possible–ideally within 2 weeks–is one of the aspects of the grant agreement timeline that cities have the most control over and can go a long way towards speeding up the process.

7. Share helpful information with other winning cities

If possible, it can be helpful to reach out to your colleagues in other winning cities when awards are announced. This will allow winners to share information about timelines, questions that the granting agency answered, etc. which can save time for both award winners and granting agencies.

8. As a last resort, reach out to your congressional delegation for assistance

Sometimes, even when cities employ all of the above strategies, they are still stuck waiting for a grant agreement to be finalized. Many agencies are struggling with capacity given the large increase in funds they are responsible for due to the investments made in the Bipartisan Infrastructure Law and the Inflation Reduction Act. Reaching out to your congressional delegation to make an inquiry on your behalf can be a helpful way to communicate urgency to the granting agency.

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