Government grants in 2025: The age of “over-compliance”

Amid a rapidly shifting political landscape, government grantmaking is undergoing a profound transformation — one defined by heightened scrutiny, evolving (and often contradictory) expectations, and increased risk of closure for agencies, nonprofits, and programs alike.

I recently attended the National Grants Management Association’s Annual Grants Training in Washington, D.C. This event brings together grants managers, auditors, officials, and administrators from all levels of government to discuss topics like Uniform Guidance (2 CFR 200), auditing best practices, compliance, reporting, and subrecipient monitoring.

But this year felt markedly different. 

As my friend and colleague Ian Witthoeft and I discussed in our recent podcast episode, from the outset, the tone was more urgent. Attendees were visibly uneasy, grappling with the reality of widespread program freezes, increased reviews, agency closures, a shrinking government workforce, and a sweeping search for fraud, waste, and abuse.

 

 

Dispatch from NGMA AGT 2025

Sam and Ian discuss what they heard from government grantmakers at the NGMA AGT 2025.

 

 

Yet despite the uncertainty, a strong undercurrent of resilience remained. Attendees were committed to pressing forward and adapting to the rapidly evolving environment. 

That spirit of perseverance fueled many of the week’s most valuable conversations. Here are some key takeaways from the conference.

Welcome to the age of “over-compliance”

In this new era, grant programs that survive — and thrive — will be those that can provide extensive, detailed evidence of compliance. Programs are now expected to prove their financial oversight, alignment with executive orders, and adherence to the current administration’s priorities. Those that fall short risk delayed payments, reduced funding, or cancellation.

One recurring topic at NGMA was the presence of “trigger words” in program descriptions or grant applications. They include terms like marginalized or under-served  which could suggest misalignment with current federal priorities. These words are increasingly being flagged, potentially subjecting programs to added scrutiny or denial.

Unsurprisingly, compliance, reporting, and fraud risk management dominated the agenda. These functions are critical in demonstrating that programs are safe to fund and aligned with federal direction. Most grants professionals expect even stricter requirements ahead.

Here are three proactive steps grants administrators can take now to “over-comply” — and strengthen their programs’ resilience.

1. Audit and adjust language in grant materials

Thoroughly review program descriptions, guidelines, and external communications to identify terms that may be politically sensitive. While this doesn’t mean compromising on mission or values, it does call for careful framing to avoid unnecessary scrutiny during audits or reviews.

2. Strengthen documentation and data collection

Ensure every element of grant management — from application review to subrecipient oversight to outcomes reporting — is backed by clear, consistent documentation. Establish systems that can capture and organize data to demonstrate compliance, financial stewardship, and strategic alignment.

3. Prioritize compliance and fraud risk infrastructure

Reinforce internal controls and ensure your fraud prevention protocols are current and robust. Update reporting mechanisms to meet new expectations, and consider implementing tools that support real-time monitoring, audit readiness, and risk detection.

Technology is non-negotiable in 2025

As grant administrators are asked to do more with fewer staff, technology has become an essential ally. A modern grants management system can support compliance, streamline reporting, and centralize oversight — all while improving transparency and accountability.

 

Another clip from my recent Impact Audio episode with Ian Witthoeft. Listen to the full episode here.

 

Here are three ways grants administrators can leverage technology more effectively in today’s environment:

1. Automate compliance monitoring and reporting

Manual tracking of compliance data is not only labor-intensive — it’s risky. Grant management platforms can automate repetitive tasks, flag noncompliance, and ensure documentation is complete and easily accessible. Automation helps maintain audit readiness and allows teams to respond to inquiries with speed and confidence.

2. Centralize subrecipient monitoring

With increased emphasis on subrecipient oversight, administrators need full visibility into how funds are used across partners. Centralized systems make it possible to track risk assessments, deadlines, performance metrics, and reporting obligations — ensuring that all parties remain accountable and aligned.

3. Integrate data sources for oversight and risk detection

Modern grant systems can integrate data from disparate sources — including financial platforms, application portals, and government databases — into a unified platform. This not only supports stronger financial oversight, but also enables data-driven decision-making and early detection of irregularities.

Adaptability requires a strong foundation

NGMA AGT 2025 made one thing clear: grantmaking is being reshaped in real time. For agencies, funders, and nonprofit partners, success will require more than just policy fluency — it will demand operational agility, strong infrastructure, and the right tools to navigate mounting complexity.

The stakes are high. As oversight becomes more exacting, those who can demonstrate transparency, accountability, and alignment will be best positioned to continue delivering impact in their communities.Submittable helps state, local, and federal agencies modernize and manage their grantmaking process. Get in touch to learn more about how our team can help you navigate these seismic changes.

Sam Caplan

Sam Caplan is the Vice President of Social Impact at Submittable, a platform that foundations, governments, nonprofits, and other changemakers use to launch, manage, and measure impactful granting and CSR programs. Inspired by the amazing work performed by practitioners of all stripes, Sam strives to help them achieve their missions through better, more effective software. Sam formerly served as founder of New Spark Strategy, Chief Information Officer at the Walton Family Foundation, and head of technology at the Walmart Foundation. He consults, advises, and writes on social impact technology, strategy, and innovation. Connect with or follow Sam on LinkedIn , listen to his podcast Impact Audio, and subscribe to his bi-weekly newsletter The Review.