What are earmarks? What can earmarks be used for? When is the next earmark opportunity? How to get help navigating the process?
I. What are earmarks?
After a 10-year moratorium that began in fiscal year 2011, Congress reinstituted earmarks in Fiscal Year 2022.
Earmarks are member directed grants that are included within the discretionary appropriations bills and amount to a small percentage of the federal discretionary budget. Presently, Congress limits the total amount of earmark funding to no more than 1 percent of total discretionary spending, or approximately $15 billion based on recent discretionary spending caps.
Earmarks are typically associated with and correlate to existing competitive grant programs. The federal agencies responsible for administering the competitive grant programs are also responsible for administering the earmark projects according to the same rules and guidelines.
Earmark funding is included within the regular annual discretionary appropriations bills. The FY 2023 earmark results are pending the finalization of the annual discretionary appropriations for FY 2023.
II. What can earmarks be used for?
There are 12 annual discretionary appropriations bills. Most of these bills provide for earmark projects related to the respective federal departments, agencies, and programs under their jurisdiction. Some bills are better suited and are more generous or accommodating to nonprofit earmark projects, than others. Projects that support labor, health and human services, education, community development, equipment acquisition, or capital improvements are well suited for earmark opportunities. On average, the recent range of earmark funding has been between $100 thousand and $2 million and in exceptional instances exceed $10 million.
Note: Earmarks cannot underwrite existing programs – projects must be new, innovative, or an expansion.
III. What is the next earmark opportunity?
The next earmark opportunity will be for fiscal year 2024.
The FY 2024 appropriations process is expected to commence as early as February and as late as July 2023. The timing will depend on when Congress approves the FY 2023 discretionary spending bills, which is likely to be delayed. Most year’s, Congress is delayed by 90 days or more.
In January, the new 118th Congress will be sworn in. The new Congress could decide to change or modify the earmark rules in either chamber. The respective appropriations committees will establish timelines and guidelines in accordance with the rules the House and Senate adopt.
IV. What is the application process?
In contemplation of the FY 2024 earmark funding opportunity, congressional offices may already be receiving earmark proposals from their nonprofit constituents.
The earmark process is highly competitive, and Members of Congress can receive hundreds of requests to choose from with only a limited number they will be able to support.
Complete, well-drafted, and compelling earmark proposals have significant advantage, as do applicants who are well informed and coached in how to strategically navigate the process.
V. Who can help?
While earmarks on noncompetitive, the process by which Members of Congress select the earmarks they sponsor, and the appropriations committees approve, is competitive.
Rob Goldberg has more than 20 years’ experience helping nonprofit and faith-based organizations navigate the federal appropriations process, including providing earmark technical assistance, guidance, and coaching. Rob’s clients have successfully secured hundreds of earmarks for an array of human services initiatives and capital projects worth tens of millions of dollars.
