Top 10 Questions State and Local Government Grants Managers Are Asking in 2026

Why It Matters

Grants are becoming a strategic financial lever, so inefficiencies directly threaten service continuity and fiscal resilience in state and local governments.

Key Takeaways

• 40% applying for more grants to fill revenue gaps.
• 80% worry about funding stability in next 1‑3 years.
• 77% report heightened compliance oversight this year.
• 44% still rely on spreadsheets for grant tracking.
• Only 29% actively use automation or AI in grants.

Pulse Analysis

Public‑sector agencies are feeling the squeeze of tighter budgets and unpredictable revenue streams, prompting a shift that treats grant funding as a central pillar of financial planning rather than a peripheral add‑on. The Euna Solutions survey reveals that 40% of managers are actively pursuing additional grants to close revenue gaps, underscoring how essential external funding has become for maintaining essential services and long‑term fiscal health. This strategic re‑orientation forces governments to align grant cycles with broader budgeting processes, making grant outcomes a key performance indicator for municipal resilience.

At the same time, compliance demands are intensifying, with 77% of respondents noting stricter oversight and 65% saying reporting requirements now dominate workloads. Manual data entry and spreadsheet‑based workflows remain entrenched—44% of agencies still rely on fragmented tools—leading to inefficiencies that erode staff capacity. Although only 29% have deployed automation or AI, a full 50% are planning pilots, signaling a growing appetite for technology that can streamline application intake, reporting, and audit readiness. The gap between expectations and operational capability is a critical risk factor for agencies that cannot modernize quickly.

The report’s recommendations—centralize grant data, reduce manual tasks, measure outcomes, strengthen collaboration, and build scalable infrastructure—outline a clear roadmap for transformation. Vendors offering purpose‑built, cloud‑based grant‑management platforms stand to benefit as governments accelerate digital adoption. For policymakers, supporting standards that facilitate data interoperability and funding for technology upgrades will be essential to ensure that grant programs remain effective, compliant, and capable of sustaining public services amid fiscal uncertainty.