Local Government Efficiency Grant Program

The Local Government Efficiency (LGE) Grant Program, administered by the New York State Department of State's Division of Local Government Services, supports municipalities seeking to reduce operational costs and enhance service delivery through intermunicipal cooperation. The program offers three funding types: Implementation Grants, Planning Grants, and Qualification Grants. These grants assist local governments in developing and executing projects that modernize municipal services through shared services, functional consolidation, and other efficiency strategies. Eligible applicants include a broad range of local government entities such as counties, cities, towns, villages, school districts, BOCES, regional planning boards, and public or association libraries. The 2025–2026 LGE Program prioritizes projects targeting specific functions: information technology services (including cybersecurity), emergency services, countywide or multi-jurisdictional code enforcement and planning, water and wastewater system management, and clean energy initiatives. Applicants must demonstrate commitment to implementation and provide supporting documentation that includes cost estimates, administrative changes, and anticipated service outcomes. Applications are reviewed and scored based on project need, scope, readiness, operational impact, and financial return on investment. Implementation Grants provide up to $250,000 per local government, capped at $1,250,000 per project, and require a 10% local cash match. Planning Grants offer up to $20,000 per local government, with a maximum of $100,000 per project and a 50% local match requirement. Qualification Grants—capped at $25,000—support planning efforts by regional boards and counties preparing for future application rounds. The total program allocation is approximately $8 million, of which $7.2 million is reserved for Implementation Grants and $800,000 for Planning and Qualification Grants combined. Allowable costs include legal and consulting services, capital improvements, equipment, and transitional personnel costs (limited to three years). Ineligible costs include recurring operational expenses, indirect costs, political or religious activities, fundraising, and any expenses previously covered by other state-funded programs. All grants are reimbursable, and applicants must comply with detailed reporting, payment, and contract administration requirements. Applications must be submitted electronically via the New York State Consolidated Funding Application (CFA) portal no later than February 4, 2026, at 4:00 PM Eastern Time. Required documents include a Return on Investment worksheet, budget template, MWBE compliance form, and a Gender-Based Violence and the Workplace Certification. Awards will be announced based on merit, and awarded applicants must enter into a five-year state contract. Pre-application webinars are scheduled for December 17 and December 18, 2025. All substantive questions must be submitted by December 24, 2025, and answers will be posted by January 6, 2026. Applicants may contact the Local Government Efficiency Program by phone at (518) 473-3355 or via email at [email protected] for additional assistance. The opportunity is not rolling but is issued annually, with the next expected cycle anticipated in December 2026.

Emphasize alignment with Target Functions and provide documentation of cost savings and cooperation.