State and Local IT Funding: What Agencies Need To Know

As state and local governments continue to modernize their infrastructure, funding remains one of the most significant hurdles to implementing new technology. From cybersecurity upgrades and emergency management systems to exploring the role of AI in public safety, the demand for reliable funding sources has never been greater. Yet, navigating the evolving landscape of grants can feel overwhelming, especially as priorities shift year to year.

In recent months, shifts in federal funding priorities have placed additional strain on local agencies. FEMA, for instance, has delayed the release of certain emergency management grants until states can provide updated population counts. This slows the distribution of funds that many local governments rely on for police, fire and emergency response departments.

In addition to temporary delays, agencies are also navigating evolving requirements and new language restrictions in grant applications. Certain terms in your proposal may affect eligibility for particular programs. Similarly, environmental preparedness funding, once a steady resource through programs such as Building Resilient Infrastructure and Communities (BRIC), has seen reductions as federal attention moves toward newer priorities such as AI and cybersecurity.

These shifts illustrate an important point: funding strategies that worked last year may no longer be effective today. Understanding where the federal government is focusing and how to position your agency accordingly is key to staying ahead.

While some funding categories have tightened, others are expanding. AI, cybersecurity and digital modernization are emerging as top priorities across the nation. For state and local agencies, this means looking at how technology investments such as data analytics, threat detection or infrastructure modernization align with national initiatives and executive orders.

Unlike federal agencies that operate on allocated budgets, most state and local governments depend on annual grant cycles. These recurring programs provide a consistent source of funding for essential IT improvements.

Some of the key annual grants include:

FEMA Grants

• State Homeland Security Grant Program (SHSGP): Supports preparedness and resilience across emergency services and critical infrastructure.
• Assistance to Firefighters Grant (AFG): Provides technology and equipment funding for fire departments and first responders.

DOJ Grant

• Justice Assistance Grants (JAG): Offers funding for public safety, law enforcement technology and data-driven community programs.

DHS Grant:

• Cybersecurity and Infrastructure Security Agency (CISA) Grants: Helps local governments strengthen cybersecurity capabilities.

Each program comes with its own timeline and requirements. Our team continuously monitors when these grants open and helps agencies prepare strong, compliant applications.

We understand that every community’s needs are different. That’s why our approach begins with collaboration. When a new grant is announced, our funding experts research the details, summarize eligibility requirements and share insights with account managers. From there, we reach out directly to local agencies to discuss whether the opportunity aligns with their priorities.

For instance, if a county is preparing for a cybersecurity overhaul, our team might present an overview of active grants, walk through application timelines and highlight specific language considerations to ensure compliance. By tailoring our guidance to each region and department, we make the funding process not only easier but also more strategic.

Whether it’s identifying eligible projects, providing examples of successful proposals or tracking changes to federal and state priorities, our goal is simple: help secure the funding you need to move your technological initiatives forward.

As we enter a new fiscal year, agencies should be aware that several of the major four-year grant cycles will conclude next year. This makes the coming months a critical time to take advantage of existing opportunities. While the funding environment may be unpredictable, proactive planning can help local governments make the most of what’s available — especially as new focus areas such as AI and cybersecurity continue to gain traction.

Now more than ever, it’s important to have a partner who understands how these funding mechanisms work, stays informed of policy changes and can adapt strategies as priorities evolve.

CDW Government is here to help you identify opportunities, simplify the process and align your technological goals with the grants that fit best. Our goal is to help agencies cut through the noise, identify the most relevant grants and align their technological needs with available funding opportunities.

Let us help you navigate the changing landscape of state and local IT funding — so you can focus on what matters most: building smarter, safer and more connected communities.