The federal budget process is often subject to delays, and this year is proving to be no exception. By law, the President must submit a draft budget for the upcoming fiscal year by the first Monday in February. However, it is not uncommon for this deadline to be missed, particularly in the first year of a new Administration. This year the President’s budget might not be released until May or even June, leaving many offices in a holding pattern before releasing their appropriations forms.
Complicating matters further, Congress failed to pass a final appropriations package for the current fiscal year, instead implementing a full-year Continuing Resolution (CR) to maintain funding at existing levels. This marks the first time in recent memory that a full-year CR has been utilized, and indications suggest that another year-long CR may be likely.
The Impact on Earmarks and Congressional Priorities
Historically, most lawmakers have been supportive of earmarks, including Community Project Funding (CPF) and Congressionally Directed Spending (CDS). However, all FY2025 earmarks were eliminated as part of the recent CR passage. This means that even if your organization secured CDS or CPF funding last year, those funds would have been eliminated under the new resolution. Because of this some Congressional offices have denied all earmark requests for FY26 or indicated they will be significantly more competitive.A Strategic Approach to Funding
While the likelihood of securing CPF and CDS earmarks this year is slim, these efforts serve a strategic purpose, laying the groundwork for future funding requests.Given the current Congressional outlook, programmatic funding, nationwide grant allocations, emerges as the most viable funding avenue for appropriations this year. Programmatic funding, however, is not specific to an organization and is the creation of a "grant opportunity."The current budget delays and shifts in Congressional priorities present significant challenges, but they also offer strategic opportunities. By focusing on programmatic funding, maintaining a presence in earmark submissions, and strengthening relationships with key lawmakers, organizations can position themselves for success.