When considering potential FY 2023 earmark grant opportunities, it is helpful to review the most current completed cycle (FY 2022) for trends and clues. As set forth below, the FY 2022 opportunity was particularly beneficial for health and human services nonprofits. The next earmark grant opportunity will occur soon into the next (118th) Congress, which commences in January, and any organization contemplating an earmark request next session should be planning and organizing now.
The Consolidated Appropriations Act, 2022 designated $9.1 billion for 4,963 projects at the request of Members of Congress. The primary recipients were nonprofits and local governments.
In the current Congress (117th, 2020-2021), the Senate and House Appropriations Committees adopted a process inviting Members of Congress to request funding for specific projects – referred to as “Congressionally Directed Spending” and commonly called “earmarks.”
The requests were reviewed by the Appropriations subcommittees of jurisdiction. Approved requests were included in the Consolidated Appropriations Act, 2022, and the accompanying joint explanatory statement, enacted in March 2022.
The funding is distributed to the designated project recipients through eighteen federal agencies (of jurisdiction), who are also responsible for monitoring project implementation.
In the 117th Congress, the Senate and House observed similar rules for earmark consideration. For example, they limited the amount of funds that could be approved through this process to 1 percent of total discretionary appropriations; limited the agencies and budget accounts for which Members could submit requests; and required Members to provide evidence of community support for their requests.
Participating Federal agencies included the U.S. Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Justice, Labor, Transportation; U.S. Army Corps of Engineers; Environmental Protection Agency; General Services Administration; National Aeronautics and Space Administration; National Archives and Records Administration; and Small Business Administration.
Prior to the pass through of funds to the nonprofit recipients, there are a number of checks and balances that must be satisfied. For example, often designated recipients must register with the System for Award Management; complete an application and submit information, such as project spending plans to the administering agency; and comply with the administering agencies’ ordinary or regular internal controls.
Two of the biggest categories of earmark funded projects in FY 2022 (and perennially) were for Community and Regional Development projects such as efforts to prevent homelessness, expand affordable housing, and improve community infrastructure; and for Health-related projects such as upgrades to facilities and equipment for health-related facilities and support for mental and behavioral health programs.
In FY 2022, more than 1.700 nonprofit organizations (excluding higher education organizations) shared in almost $1.7 billion in earmark projects, across 47 states, the District of Columbia, and four U.S. territories.
When Congress appropriated funds for the FY 2022 earmark projects, sixty-eight percent of the funds’ time availability were fixed for a period ranging from 1 year to 5 years. Generally, a one-year period of performance is the norm. Navigating the earmark request process can be challenging for the uninitiated. Submitting a quality application is a must to be successful in the competitive earmark environment.
