Government Grants 2026

The federal government distributes over $800 billion annually through grants and cooperative agreements. FY2026 brings expanded funding for research, clean energy, public health, and infrastructure through Grants.gov and agency-specific programs.

From SBIR Phase I awards to multi-million dollar cooperative agreements, federal grants fund innovation at every scale.

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FY2026 Federal Grants Landscape

$800B+

Annual Grant Spending

Active Grant Listings

2,000+

Assistance Listings (CFDAs)

Federal Grant Agencies

Types of Federal Grants Available in 2026

Project Grants

Competitive awards for specific projects. Most common type. Requires detailed proposals with objectives, methodology, and budget justification.

Formula Grants

Allocated based on statutory formulas (population, income, etc.). Typically distributed to state and local governments rather than businesses directly.

Cooperative Agreements

Similar to grants but with substantial federal involvement in project execution. Common in research, public health, and defense programs.

SBIR/STTR Awards

Small Business Innovation Research and Small Business Technology Transfer programs fund R&D with commercialization potential. Phase I ($50K-$275K), Phase II ($500K-$1.5M).

Block Grants

Broad federal funding to states for categories like community development (CDBG), social services, and public health preparedness.

Earmark/Congressionally Directed Spending

Funding for specific projects identified by members of Congress. Returned in recent appropriations cycles with new transparency requirements.

SBIR/STTR Updates for 2026

Reauthorization and Expanded Budgets

The SBIR/STTR programs have been reauthorized with increased allocation percentages. Participating agencies must set aside 3.2% (SBIR) and 0.45% (STTR) of their extramural R&D budgets, totaling over $4 billion annually for small business innovation.

Phase I and Phase II Award Sizes

Phase I awards range from $50,000 to $275,000 (6-12 months) for feasibility studies. Phase II awards range from $500,000 to $1.5 million (24 months) for full R&D. Some agencies offer Direct-to-Phase-II and Phase III commercialization support.

Key Participating Agencies

11 federal agencies participate in SBIR/STTR: DoD, HHS (NIH), DOE, NSF, NASA, USDA, DHS, EPA, Department of Commerce (NIST), Department of Education, and DOT. DoD and NIH account for the majority of awards.