$145+ Billion in Funding Impacted: An Ongoing Sector-by-Sector Grants Analysis of the "Big Beautiful Bill"

Quick Links

• Breakdown by Sector

  • National Security, Tech, Industrial Base

  • Health and Human Services

  • Workforce & Ed

  • Agriculture & Rural Dev

  • Housing

  • Environment & Clean Energy

• Wider US Market

• Full List of Program Changes

We are continuing to review Congressional Budget Office rescission data to provide specific dollar amounts for programs where unobligated balances are being rescinded, and will update this appendix as additional information becomes available.

The first major budget bill of the second Trump administration is now law. This ongoing analysis focuses on competitive grant funding impacted by this legislation and does not encapsulate the broader changes to entitlements like Medicaid and SNAP. The law eliminates an estimated nearly $30 billion in grant funding from existing programs while authorizing or appropriating approximately $124 billion across defense, AI, rural health, border security, and water infrastructure. This analysis reviews line items from the legislation that likely impact grant funding. Many of these programs are new, while the remainder converts or augments funding for programs that Congress had already authorized.

The legislation dismantles the Biden administration's climate and environmental funding infrastructure. Programs like the Greenhouse Gas Reduction Fund, environmental justice grants, and clean transportation initiatives are being terminated entirely, many with work already underway and staff already hired. It is unclear to what extent obligated funds will be clawed back.

The shift comes at a time when federal grantmaking was already contracting as the Department of Government Efficiency systematically shut down programs considered out of alignment with administration priorities. Between October 2024 and July 2025, calls for federal grant applications dropped 28.3%, while available funding was cut nearly in half. Over 15,000 existing federal grant awards worth $112.51 billion have been canceled. This legislation formalizes a complete restructuring of federal funding priorities.

GrantExec maintains a grant award and program cancellation tracker as well as a dedicated live grants database.

The New Federal Grant Economy

The redistribution of federal grant funding creates clear winners and losers across six major sectors. While environmental and housing programs face severe cuts, national security, rural health, and workforce development will see increases that will reshape how organizations approach federal funding.

Initial estimates:

Key Findings

1. Massive policy reorientation: From $29.4B in rescinded grant funds for clean energy and housing to $124.4B in new funding for defense, border security, and agriculture.

2. Environmental programs cut: Climate and environmental programs lose $22.6B net, representing the largest sector decline.

3. Rural health grant to offset Medicaid cuts: The $50B Rural Health Transformation Program will not cover losses​.

4. Defense/security expansion: National security programs gain $33.9B net, with border security ($10B) as the largest component.

Methodological Notes

• Several agriculture programs state they "ramp up to" amounts per year. This analysis assumes full funding for 5 years, but this may overestimate totals if programs start smaller. More details in the CBO report.

• Time periods vary: Some programs run FY25-29, others FY26-30, others start FY27.

The Big Winners: Where Money Is Flowing

National Security, Technology, and Industrial Base: +$34 Billion

The legislation appropriates over $275 billion for national security and defense, with over $30 billion likely flowing through grant programs accessible to non-federal entities. This includes new state-administered programs for border security and significant investments in defense manufacturing capacity.

New Funding & Grant Opportunities:

• Border Infrastructure & Technology: $10 billion for a new State Border Security Reinforcement Grant Fund (Sec. 90005).

• Defense Industrial Base: Over $13 billion is appropriated to the Department of Defense for modernizing the U.S. industrial base. This includes:

  • $9.8 billion for the Industrial Base Fund and related capital assistance programs for munitions, shipbuilding, and critical minerals (Sec. 20004, 20005).

  • $2 billion for the Defense Innovation Unit (DIU) to scale commercial technology for military use (Sec. 20005).

  • $250 million for the Training in Defense Manufacturing program.

  • $400 million for a collaborative campus for naval shipbuilding.

• Department of Justice Grants (Sec. 100054): Appropriates $3.33 billion to the DOJ, increasing funding for the Edward Byrne Memorial Justice Assistance Grant (JAG) Program and the Office of Community Oriented Policing Services (COPS Office) for investigating violent crime and supporting immigration enforcement. It also provides compensation to states for incarcerating criminal aliens.

• "BIDEN" Reimbursement Fund (Sec. 100055): Establishes the "Bridging Immigration-related Deficits Experienced Nationwide (BIDEN) Reimbursement Fund" with $3.5 billion for grants to states and localities to reimburse costs for apprehending criminal aliens, prosecuting crimes, and related court operations.

• Office of Refugee Resettlement (Sec. 87001): Appropriates $300 million to the ORR for costs related to sponsor vetting, background checks, and home studies for unaccompanied children, which could be implemented through grants to non-profits.

Detailed list in appendix.

What This Means for Grant Seekers: State and local law enforcement agencies gain access to substantial new funding streams. Defense contractors and technology companies should note the emphasis on domestic manufacturing capacity. The shift to state-administered programs for border security funding changes the application process from federal to state level.

Workforce & Education: +$13.4 Billion

The expansion of Pell Grants to short-term workforce training programs represents a significant policy shift, opening federal student aid to non-degree programs for the first time.

New Funding & Grant Opportunities:

• Pell Grant Program Funding: Appropriates $12.67 billion to address the overall Pell Grant program shortfall (Sec. 83003).

  • Workforce Pell Grants: The bill establishes Pell Grant eligibility for students in short-term (150-600 hour) job training programs in high-demand fields. This opens up a major new federal funding stream for community colleges, technical schools, and other eligible job training providers (Sec. 83002).

• Scholarship Granting Organizations: New federal tax credit for K-12 scholarship donations (Sec. 70411).

• $450 million for maritime industrial workforce development programs (Sec. 20002(13)).

Rescissions:

• No direct rescissions.

Detailed list in appendix.

What This Means for Grant Seekers:

Community colleges, technical schools, and workforce training providers can now access federal student aid funding for short-term programs. Organizations must prepare to meet federal compliance requirements previously limited to degree-granting institutions.

Health and Human Services: +$48.2 Billion

The Rural Health Transformation Program is the largest single grant program in the legislation, providing $10 billion annually for five years to improve rural healthcare access and provider stability.

New Funding & Grant Opportunities:

• Rural Health Transformation Program: Establishes a $50 billion grant program over five years (FY26-30) for states to improve healthcare access, outcomes, and financial stability for rural providers (Sec. 71401).

• Office of Refugee Resettlement: Appropriates $300 million for grants and contracts to support sponsor vetting for unaccompanied children (Sec. 87001).

• Home or Community-Based Services (HCBS): Appropriates $150 million to help states implement expanded HCBS waiver programs (Sec. 71121).

Rescissions/Reductions:

• Rescinds $2.3 billion from the National Education and Obesity Prevention Grant Program (Sec. 10107).

• Medicaid funding prohibited for one year to certain abortion providers (Sec. 71113).

Detailed list in appendix.

What This Means for Grant Seekers:

Rural healthcare providers should prepare for a state-administered application process. Urban hospitals may benefit through rural partnerships. Expect to see postings from state health departments.

Agriculture & Rural Development: +$24.7 Billion

We're continuing to review these figures as more data emerges.

Topline numbers suggest expanded investment in Ag, but Congress seems to be swapping a pot of left-over, one-time Inflation Reduction Act (IRA) money for a bigger, permanent Farm-Bill pot. The changes reflect a return to traditional conservation and research priorities, moving away from climate-specific initiatives.

New Funding & Grant Opportunities:

• Conservation (Sec. 10601): Provides $15B+ in ramped up program funding from FY 2026-2031 for farmers and ranchers, including:

  • Environmental Quality Incentives Program (EQIP): Funding ramps up to $3.255 billion annually.

  • Agricultural Conservation Easement Program (ACEP): Funding ramps up to $700 million annually.

  • Regional Conservation Partnership Program (RCPP): Funding ramps up to $450 million annually.

  • Also increases funding for the Watershed Protection and Flood Prevention program ($150 million annually) and the Feral Swine Eradication and Control Pilot Program.

• Agricultural Research (Sec. 10604): Authorizes hundreds of millions in new funding for various research grant programs, including $37 million for the Foundation for Food and Agriculture Research, $125 million annually for the Research Facilities Act competitive grant program, and $175 million in FY 2026 for the Specialty Crop Research Initiative.

• Horticulture (Sec. 10606): Increases annual funding for Specialty Crop Block Grants to $100 million in FY 2026 and boosts funding for the Plant Pest and Disease Management program.

Rescissions:

• Several programs rescinded or reallocated from various U.S. Forest Service, USDA/NPS/BLM programs funded by P.L. 117-169 (Sec. 10201 and Sec. 10601(g)). These programs were counted toward the Climate bucket, but are worth referencing here.

Detailed list in appendix.

What This Means for Grant Seekers: Organizations focused on traditional conservation practices will find expanded opportunities. Those working on climate-specific agricultural initiatives should consider reframing their work around productivity and conventional conservation goals.

The Casualties: Housing and Environment

Housing: -$2.5 Billion

This sector sees the rescission of several major grant programs, while long-term support is focused through the tax code rather than new grant opportunities.

Rescissions:

• $2.4 billion of the the $3.2 billion Neighborhood Access and Equity Grant Program (Sec. 60019).

• $138 million of the $837.5 million Green and Resilient Retrofit Program for Multifamily Housing (Sec. 30002).

What This Means for Grant Seekers:

Housing organizations pursuing federal support must pivot from grant-seeking to partnering with tax credit developers. Transit equity and green building programs lose their primary federal funding sources.

Environment & Clean Energy: -$22.5B

Environmental programs face the deepest cuts, with dozens of grant programs eliminated entirely. The few remaining opportunities focus on water infrastructure rather than climate or clean energy initiatives.

New Funding & Grant Opportunities:

• Water Infrastructure: $1 billion for water conveyance and storage projects (Sec. 50501).

• $150 million for watershed protection and flood prevention (Sec. 10601).

Rescissions:

• Greenhouse Gas Reduction Fund: Program is repealed, rescinding unobligated funds from the $27 billion program (Sec. 60002). Attempts have been made to claw back at least $20 billion.

• Environmental & Climate Justice Grants: Unobligated balances are rescinded from this $3 billion program (Sec. 60016).

• The $2 billion Low-Carbon Transportation Materials Grants program's remaining funding is rescinded (Sec. 60024)

• Other Major Rescissions: Unobligated funds are rescinded from several other programs, including those for Clean Heavy-Duty Vehicles, Methane Emissions Reduction, Diesel Emissions Reductions, and various DOE training grants (Title VI, Sec. 50402). The total funding rescinded for these programs is estimated by the Congressional Budget Office to be $12.63 billion.

What This Means for Grant Seekers: Environmental organizations face an immediate funding crisis. Those with existing awards but no executed contracts face uncertainty about continued funding. Organizations must explore state, local, and private programs or consider pivoting to other federal priorities.

What This Means for Grant Seekers

The federal funding landscape has shifted for at least the next three years. Organizations face new challenges and opportunities depending on their sector:

Defense contractors and law enforcement agencies should prepare for new federal RFPs as agencies deploy funding over the next 12-18 months. The shift to state-administered border security programs means building relationships with state officials rather than federal program officers.

Rural healthcare providers need to engage with state health departments immediately, as application processes for the $10 billion annual Rural Health Transformation funds will launch soon. Urban hospitals should explore rural partnership opportunities.

Workforce training providers must invest in federal compliance infrastructure to access the new Pell Grant eligibility. This includes financial aid administration, federal reporting requirements, and accreditation standards previously limited to colleges and universities.

Environmental organizations face the starkest reality. With nearly all EPA grant funding eliminated, survival depends on rapid diversification to state, local, and private foundation support. Organizations with existing federal awards should immediately review grant agreements for termination clauses.

GrantExec helps organizations better match, apply, and win funding at all levels. A complete database of state, local, and private alternatives for organizations navigating this historic federal funding realignment can be found on their website.

Today's U.S. Grant Market

Explore more at https://grantexec.com/data/us-grant-market.

Methodology

Funding shifts and sectoral impacts were identified by systematically reviewing the text of the “One Big Beautiful Bill Act” (H.R.1, 2025) and data compiled by the Congressional Budget Office. Additional insight was provided by GrantExec’s ongoing monitoring of new and rescinded programs, integrating data from agency releases, federal grants dashboards, and manual validation by GrantExec’s research team.

Appendix: List of Impacted Grant Programs

New/Expanded/Extended Federal Grant Programs

This table details newly authorized grant programs and significant appropriations for activities likely to be carried out through grants (though also may be contracts or cooperative agreements). We are continuing to update this appendix as we identify additional line items.

Rescinded/Terminated Federal Grant Programs

This table details existing grant programs for which funding is explicitly rescinded, repealed, or terminated by the legislation. Many of these programs were established or funded by the Inflation Reduction Act of 2022 (Public Law 117-169). The Congressional Budget Office has released an estimate of rescission amounts– we are continuing to review them.

The list above focuses on competitive grant opportunities. Many programs in the legislation are implemented through contracts, tax incentives, or state block grants, and may not be included here. Some expanded legacy programs may also be embedded within larger statutory updates.

We are continuing to review Congressional Budget Office rescission data to provide specific dollar amounts for programs where unobligated balances are being rescinded, and will update this appendix as additional information becomes available.