Report: Fixing the Federal Grants Process

Priorities for a Modernized System 

Grants management is a critical element of federal financial operations that is often overlooked as a management discipline. Each year, more than $1 trillion in federal grants are awarded, yet the systems, processes, and infrastructure supporting those awards are often outdated, fragmented, and inconsistent. To shine a light on these challenges, Allocore convened its third cross-sector roundtable—this time focused on grants—bringing together senior leaders from government, industry, and the nonprofit community for an open conversation on grant management reform. 

Participants spoke candidly about what works, what doesn’t, and what it will take to move from a fragmented and reactive model to one that is standardized, data-driven, and accountable. The message was clear: meaningful change is within reach, but it demands political will, sustained investment, and a willingness to let go of entrenched practices. 

Key Takeaways 

The discussion surfaced a set of immediate priorities to improve the federal grants process: 

The Restaurant Revitalization Program: Lessons from a Crisis 

The roundtable discussion opened with reflections on a high-pressure test case: the SBA’s Restaurant Revitalization Program, administered during the height of the pandemic. The program faced overwhelming demand, with 500,000 grant applications submitted in the first hour. Yet despite the scale and complexity, funds were successfully distributed to over 100,000 recipients within 60 days. 

This experience demonstrated that with commercial-grade software, scalable workflows, and collaborative design rooted in acknowledged best practices, the federal government can deliver grants quickly and effectively. But it also exposed key limitations, particularly around data-sharing, interagency coordination, and system interoperability. The inability to link datasets or coordinate across programs hampers efficiency and increases the risk of duplication and fraud. 

The Push for Standardization: A New Uniform Grants Framework 

Much of the conversation focused on the ongoing effort to unify the grant management life cycle. Several speakers outlined a desire to identify the 80% of processes that can and should be standardized across all grant-making programs, such as eligibility determination, reporting, and performance assessment. Once we determine these general processes, the goal of a streamlined, single grant servicing platform is in sight. 

Simplification of processes was another recurring theme, particularly in the context of Notices of Funding Opportunities (NOFOs). Participants emphasized that NOFOs must be written in plain language, reducing the need for applicants to engage with expensive grant writers, which would in turn open the door to new and smaller applicants to compete and win federal grants. The current system, one participant noted, “too often rewards institutional knowledge over programmatic merit.” 

Beyond simplification, evolving practices should define consistent performance metrics, enable automated compliance checks, and reduce administrative burden on both agencies and recipients. Participants agreed that real progress will require both cultural change and enforcement mechanisms that drive adoption across diverse federal programs. 

Transparency, Control, and Oversight in a New Era 

A number of attendees noted a clear shift in how the current administration is managing grants by moving towards greater transparency, stronger oversight, and tighter alignment with political priorities. Among the emerging practices discussed were: 

These efforts are not without implementation challenges. Agencies must update systems to accommodate these new requirements and ensure staff are properly trained to assess and enforce them. Participants emphasized the need to balance transparency with efficiency and warned that excessive oversight could inadvertently slow down program delivery. 

Technology, Payments, and the Pain of Fragmentation 

The complexity of managing federal grant payments was a consistent thread throughout the conversation. A commentor noted that one agency’s experience migrating from one payment system to another took over two years, revealing how a lack of standardization makes updating technology expensive and difficult. 

The problem is not just technological but systemic. Agencies use a patchwork of over 100 back-end systems to administer grants, and there is currently no single front-end portal for recipients. While modernization efforts like the updates to Grants.gov were applauded, participants stressed that true efficiency will only come from shared solutions, modular tools, and common data standards. 

Workforce and Capacity: The Hidden Infrastructure Problem 

Modernization isn’t just about better systems; it’s also about people. One agency’s decision to centralize over 500 grants management staff to headquarters revealed significant inconsistencies in training, skills, and regulatory knowledge among grant program offices. Staff training on core competencies like the Uniform Grants Guidance was inconsistent, and varying employee development standards led to significant gaps in expertise. 

With thousands of experienced grants professionals retiring or already gone, participants agreed that workforce planning must be treated as a top priority. Investments in training, upskilling, and knowledge management tools (including automation and AI-based assistants) were seen as essential to closing the talent gap. 

Oversight and Data: Visibility Beyond the Federal Level 

Another major challenge discussed was the lack of visibility once federal funds pass through states, localities, or other intermediaries. Data often disappears into spreadsheets, legacy tools, or paper-based systems, particularly in smaller jurisdictions. This makes effective oversight nearly impossible, creating an unacceptable risk. 

Participants called for a new generation of transparent tools that make important data easy to trace in real time, providing user-friendly dashboards that track fund flows, outcomes, and compliance across multiple layers of government. Greater emphasis must also be placed on onboarding new grantees and helping them understand compliance expectations from day one. 

The Case for Shared Systems and a Unified Front-End 

Several attendees discussed the need for a unified front-end application that allows recipients across agencies to track all their grants from a single interface. Pilots aimed at tribal recipients were cited as promising early steps, but major barriers remain, particularly around back-end system fragmentation. 

Ultimately, the vision is a plug-and-play architecture where front-end and back-end systems interoperate via common data standards, offering a seamless experience for recipients and administrators alike. Achieving this will require strong governance, sustained funding, and leadership willing to mandate change across agencies. 

The Road Ahead: Collaboration, Discipline, and Urgency 

The roundtable concluded with cautious optimism. The tools and know-how exist to dramatically improve grants management, but the effort must be cross-cutting, sustained, and driven by strong leadership and vision. 

One participant summarized the stakes succinctly: “This is not about compliance for its own sake. It’s about making sure that public funds reach the right recipients at the right time and that we have the systems in place to prove it.” 

The challenge now is to move from pilots and proposals to implementation. That will take political backing, agency leadership, and clear accountability. But the opportunity is undeniable. With over $1 trillion in annual funding on the line, there may be no better place to start building a smarter government.