Top 10 Questions State and Local Government Grants Managers Are Asking in 2026
Grants management is no longer a secondary administrative responsibility in state and local governments. It has evolved into a foundational operational function that directly influences how public agencies fund essential services, maintain financial stability, and plan for long-term resilience. As funding environments become more complex and unpredictable, grants management is increasingly viewed as critical infrastructure rather than a back-office process.
At the same time, governments are facing mounting financial pressure, stricter compliance obligations, and growing administrative workloads. These forces are reshaping how grants teams operate and forcing organizations to rethink their tools, processes, and strategies.
A recent industry report from Euna Solutions, based on insights from 51 public sector leaders involved in grants administration and oversight across the United States, highlights how dramatically the landscape is shifting. The findings show that grants professionals are confronting a widening gap between expectations and operational capacity—driven by staffing constraints, fragmented systems, and increasing regulatory demands.
The report, titled State of Grants Management and Technology: Managing Growth Under Constraint, reveals that grants management is becoming a strategic capability tied directly to fiscal resilience and organizational readiness. Instead of functioning as isolated administrative work, it is now central to how governments plan, allocate, and sustain funding.
Several major themes emerge from the findings:
- Grants are increasingly integrated into core financial planning strategies
- Compliance requirements continue to intensify across all levels of government
- Staffing and capacity limitations remain a persistent operational barrier
- Manual processes are still widely used, slowing efficiency and scalability
- Technology adoption, including automation and AI, is accelerating as a necessary solution
According to Mykola Konrad, Chief Product Officer at Euna Solutions, the shift requires a fundamental change in mindset. He notes that grants management must be treated as essential infrastructure rather than a secondary administrative function. Organizations that succeed in the coming years will be those that reduce reliance on manual processes, improve transparency across grant activities, and adopt systems that support faster and more accurate decision-making.
The data underscores both urgency and transition in the sector. Public agencies are applying for more grants, yet simultaneously expressing concern about long-term funding reliability. Meanwhile, compliance complexity is increasing, and many teams are still constrained by outdated tools and manual workflows.
Below are the 10 most pressing questions state and local government grants managers are asking as they navigate 2026.
1. Has grants management become part of core financial planning?
Yes—grants are no longer treated as supplemental or opportunistic funding sources. They are increasingly embedded into financial planning processes at the organizational level.
The report indicates that 40% of public sector organizations are actively pursuing additional grant funding specifically to offset revenue shortfalls. This demonstrates that grants are now being used strategically to stabilize budgets, maintain essential services, and support long-term financial planning rather than simply supplementing discretionary spending.
2. How uncertain is future grant funding?
Concerns about funding stability are widespread across the public sector. A significant 80% of respondents expressed worry about the reliability of grant funding over the next one to three years.
This level of concern reflects a broader environment of fiscal unpredictability, where organizations must balance increasing dependence on grants with uncertainty about continued availability. As a result, many agencies are re-evaluating how they diversify funding sources and structure financial planning models.
3. Why is compliance becoming more difficult?
Compliance complexity is increasing due to heightened oversight, expanded reporting requirements, and stricter accountability standards.
According to the report, 77% of respondents have experienced increased compliance scrutiny over the past year. Requirements related to auditing, subrecipient monitoring, and federal reporting frameworks are expanding, requiring more detailed documentation and stronger internal controls.
This shift has made compliance a central operational burden rather than a periodic administrative task.
4. How much time is spent on reporting and documentation?
Reporting and documentation now represent a major portion of grants management workload.
Sixty-five percent of respondents reported that these tasks significantly impact their daily responsibilities. This indicates that compliance-related work is no longer a supporting function—it has become a dominant operational activity that consumes substantial staff time and attention.
5. What is limiting competitiveness in grant applications?
The most significant barriers are operational rather than strategic. Many organizations struggle not because of a lack of funding opportunities, but because of internal capacity constraints.
The report highlights two primary issues: insufficient staffing to prepare competitive applications and the absence of centralized grant management systems. These limitations reduce coordination, slow response times, and hinder the ability to submit high-quality applications efficiently.
6. How much time is lost to manual processes?
Manual work continues to be one of the biggest inefficiencies in grants management.
Nearly 39% of respondents reported spending up to half of their working time on manual tasks such as data entry, tracking documents, and compiling reports. Additionally, 14% said they spend as much as 75% of their time on these repetitive activities.
This heavy reliance on manual processes significantly reduces the time available for strategic activities such as funding strategy development, partner coordination, and program optimization.
7. Are spreadsheets still widely used?
Yes. Despite advancements in technology, spreadsheets remain deeply embedded in grants workflows.
The report found that 44% of organizations still rely on spreadsheets or fragmented combinations of tools to manage grant processes. While familiar and accessible, these approaches often result in limited visibility, duplication of effort, and increased risk of errors or missed deadlines.
8. Is automation and AI actually being adopted?
Adoption is increasing but remains in early stages for many organizations.
The report shows that 29% of respondents are already using automation or AI in some capacity within grants management. Meanwhile, 50% are either exploring, testing, or planning implementation within the near future.
This indicates a clear shift toward modernization, even if full-scale adoption is still emerging.
9. Where is automation and AI being applied most?
Public sector organizations are prioritizing automation in areas that reduce repetitive workload and improve efficiency.
Key focus areas include:
- Streamlining application intake and review processes
- Automating reporting and compliance tracking
- Improving data collection and analysis
- Enhancing grant opportunity discovery and matching
- Automating internal workflows and approvals
These priorities highlight a strong demand for tools that reduce administrative burden while improving accuracy and speed.
10. What should grants leaders focus on to prepare for the future?
The report outlines several strategic priorities for grants leaders preparing for 2026 and beyond. These include centralizing grant-related data, reducing dependence on manual workflows, improving performance measurement, strengthening cross-department collaboration, and investing in scalable systems.
In practice, this means moving away from disconnected tools and toward integrated platforms that unify the entire grants lifecycle—from opportunity identification to application, compliance, reporting, and closeout. It also involves redefining success metrics to focus not only on volume of applications but also on efficiency, funding outcomes, and operational effectiveness.
The findings make it clear that grants management is undergoing a structural transformation. What was once viewed primarily as administrative work is now a core function tied directly to financial resilience, service delivery, and institutional stability.
Public sector organizations are facing a dual challenge: increasing demand for grant funding alongside growing complexity in compliance and reporting. At the same time, many agencies continue to rely on outdated tools and manual processes that limit efficiency and scalability.
However, the shift toward automation and integrated technology platforms signals a broader evolution. As governments modernize their grants infrastructure, they are positioning themselves to respond more effectively to funding uncertainty, regulatory demands, and operational constraints.
Ultimately, the future of grants management will depend on how successfully organizations can transition from fragmented, manual systems to unified, data-driven, and technology-enabled operations.
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