Federal Grant Support Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) has announced the Federal Grant Support Program, an initiative designed to bolster the competitiveness of Illinois-based entities seeking discretionary federal funding. This program is driven by Illinois' strategic imperative to increase its share of federal grants, as the state historically receives less federal funding per capita than similarly sized states. Through this initiative, DCEO aims to enhance the state's economic development goals by leveraging matching state grants to improve applicants’ competitiveness for federal opportunities. The program offers matching grants of up to $2,000,000 per project from a total pool of $16.9 million in state funds. These awards are intended to help applicants meet federal cost-share requirements or increase the overall appeal of their applications even when matching is not mandated. The state match is contingent upon a 1:1 ratio with the applicant’s cash contribution and must not exceed the federal award amount. Importantly, the program targets projects that align with Illinois’ economic development objectives such as growing high-growth sectors, supporting business attraction, empowering communities, and advancing clean energy initiatives. Eligible applicants include a broad spectrum of organizations such as local governments, nonprofits, educational institutions, for-profit businesses, and small businesses. To qualify, applicants must be the primary federal grant applicant and propose a project in which at least 51% of activities occur in Illinois (or 90% for out-of-state entities not relocating to Illinois). Applications must be submitted at least three weeks before the federal grant deadline. Upon submission, DCEO will aim to make a determination within three weeks, providing a conditional commitment letter to be included in the federal application. The commitment remains valid for 120 days and can be extended once under certain conditions. Eligible costs under the program span both capital and non-capital expenses. Some matching funds may be drawn from Rebuild Illinois capital funds, which are subject to bondability restrictions. Covered expenses under these funds include planning and engineering design, land acquisition, site improvement, construction, and durable scientific equipment. Ineligible projects are those primarily focused on transportation, parks, housing, or social services, except if they are seeking funding from the U.S. Economic Development Administration. The application package must include the Uniform Grant Application, Uniform Budget, Conflict of Interest Disclosure, Mandatory Disclosure, and a program-specific application form. These must be submitted via an electronic Smartsheet form. Applicants must be registered in the Illinois GATA Grantee Portal and in SAM.gov, with valid FEIN and UEI numbers. While indirect costs are allowable, they must be documented through a negotiated rate or a de minimis rate election, and waivers must be formally submitted if indirect costs are to be excluded. Applications will be scored competitively on need, capacity, and quality. Projects that demonstrate alignment with Illinois’ economic priorities and that present measurable impacts such as job creation, capital investment, and economic equity will score highest. Grants will be awarded on a rolling basis, and awards are expected to be finalized following the federal award notification and execution of a grant agreement with DCEO. The period of performance for awards is from October 1, 2025, to October 1, 2027. Although the opportunity remains open without a firm deadline, all applications must be submitted no later than three weeks before the intended federal grant deadline.

Submit ≥3 weeks before federal deadline; Provide signed documentation for all match contributions; Ensure alignment with economic development priorities.