STERLING, Va., March 18, 2026 /PRNewswire/ — REI Systems, a leading provider of innovative technology solutions for government, released the results of its 2026 Annual Grants Management Survey, revealing key challenges and priorities shaping the future of grants management across federal, state, local, nonprofit, and private-sector organizations.

Conducted in partnership with the National Grants Management Association (NGMA) and the George Washington University Trachtenberg School of Public Policy and Public Administration, the survey gathered input from 773 grants professionals nationwide, the highest participation in the survey’s 10-year history.

The findings, presented during REI Systems’ most recent Grants Management Breakfast Forum, highlight a grants ecosystem navigating significant changes. Funding uncertainty emerged as the most significant challenge facing the grants community today, while workforce capacity, data reporting demands, and Artificial Intelligence (AI) are reshaping how grants are administered.

“Over the past decade, this survey has helped the grants community better understand what is working well and where improvements are needed,” said Heather Morgan, who leads the grants management offering at REI Systems. “This year’s results show organizations balancing funding uncertainty, increasing data and reporting demands, and workforce challenges, while also embracing technology and new approaches to improve efficiency and strengthen program outcomes.”

Measuring Outcomes Remains a Persistent Gap

The survey also found that measuring the impact of grant programs continues to challenge many organizations. Over the past year, 70% of federal respondents, 50% of state and local respondents, and 46% of respondents from non-governmental organizations reported either no measurable improvement in outcomes or uncertainty about whether outcomes had improved.

Respondents cited barriers such as limited tools for data analysis, insufficient staffing, and the lack of clearly defined performance measures.

“Programs should establish clear performance measures from the outset and track progress along the way,” said Margaret Pearson, Deputy Controller in the Office of Federal Financial Management at the Office of Management and Budget. “Demonstrating results is essential to maintaining the effectiveness and accountability of federal grants.”

Funding Uncertainty Emerges as the Top Challenge

Funding uncertainty and political susceptibility emerged as the most significant challenges in grants management, cited by more than 70% of survey respondents. Despite this volatility, panelists emphasized that grants remain a critical mechanism for delivering services and supporting communities nationwide.

“Grants are not going anywhere,” said Chad Clifford, Executive Director of the Grants Quality Service Management Office at the U.S. Department of Health and Human Services, during the forum’s panel discussion. “The focus is on ensuring programs deliver measurable results and that we continue improving how grants support the lives of American citizens.”

Technology and Artificial Intelligence Gain Momentum

While workforce and funding challenges remain central, respondents also reported growing interest in technology modernization, automation, and artificial intelligence to help streamline grants management processes.

Survey respondents see the strongest potential for AI in the pre-award phase of the grants lifecycle, with 60% identifying it as the most promising area, followed by post-award performance and progress reporting (42%) and financial reporting (29%).

During the panel discussion, federal leaders shared examples of how agencies are already experimenting with these technologies.

“We’re using artificial intelligence to review documentation, analyze grant budgets, and support monitoring activities,” said Andrea Brandon, Deputy Assistant Secretary for Budget, Finance, Grants and Acquisition at the U.S. Department of the Interior. “These tools can help reduce administrative burden, but strong human oversight remains essential.”

Looking Ahead

Survey respondents identified several forces likely to shape the future of grants management. Overall, the survey suggests the future of grants management will become increasingly digital, data-driven, and adaptive, as organizations respond to evolving policy priorities, funding conditions, and technological innovation.

“The grants community is navigating significant change, but the commitment to improving outcomes and accountability remains strong,” Morgan added. “By combining emerging technologies with skilled professionals and strong collaboration across sectors, we can continue strengthening how grants deliver impact.”

The Annual Grants Management Survey, conducted annually since 2016, gathers insights from grants professionals across government and nonprofit organizations to help identify key trends, challenges, and opportunities shaping the grants ecosystem. Download the full survey results and webinar recording here.

About REI Systems

REI Systems delivers reliable and innovative technology solutions that empower federal, state, local, and nonprofit organizations to achieve their missions. For over 35 years, REI has helped customers solve complex challenges, make data-driven decisions, streamline processes, and improve citizen services. As a 100 percent employee-owned company, REI is directly invested in delivering excellence. With a fierce commitment to mission impact, REI ensures measurable outcomes that align with customer strategic goals. Learn more at REIsystems.com.

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SOURCE REI Systems