What to Do If Your Federal Grant Gets Cancelled: A Guide for Nonprofits

Charity Work
Suzanna Vaughan

Suzanna Vaughan

Suzanna Vaughan is a Director at McAllister & Quinn, where she partners with a diverse range of clients to maximize successful grant seeking and advocacy efforts. She has extensive experience guiding organizations through challenges in the funding landscape, including helping clients navigate appeal processes and develop strategies to mitigate funding disruptions.

Practical Steps to Help You Respond, Recover, and Advocate When Losing Federal Funding

McAllister & Quinn has partnered with many deserving nonprofits nationwide to secure billions in federal funding. Through this work, we’ve developed a deep appreciation for the essential services these nonprofit organizations provide and the challenges they now face.

The recent wave of federal grant cancellations has left affected nonprofits scrambling to maintain services, staffing, and stability. We’ve heard from nonprofit leaders whose federal funding was abruptly terminated; recent examples include the end of skilled trades training in North Carolina and cuts to education services to underserved populations in New Jersey.

If your nonprofit organization was affected by a federal grant cancellation, here is what you should do next:

Submit an Appeal

Every federal funding agency has a different process for appeals. Carefully review the official termination letter, as this document will outline the agency’s rationale and its specific guidelines on how to submit an appeal. Most federal agencies only allow a short time, such as 30 days after cancellation, to prepare and submit an appeal. Appeals usually include:
  • A summary of the grant’s impact
  • Documentation of compliance
  • Letters of support from stakeholders or elected officials

Coordinate with Fellow Grantees

When applicable, it can be helpful to coordinate your appeal efforts with relevant associations and/or stakeholder groups where membership may be broadly affected by the loss of funding. This allows you to leverage shared resources and strengthen your submission by:
  • Aligning messaging and strategy for your appeal
  • Gathering and sharing larger-scale impact data
  • Coordinating long-term legal and policy advocacy
In certain circumstances, pursuing legal action (through state or class action lawsuits) may be a better avenue for remedy. We do not provide legal services and would advise you to contact a private attorney and/or your state Attorney General for assistance with litigation.

Request Unobligated Funds

If your organization hasn’t spent the entirety of your grant award, you may be able to request a portion of the remaining balance. This can help bridge the gap while you seek new funding. Steps to take:

Contact Your Members of Congress

Your Members of Congress can advocate on your behalf. Let them know immediately, keeping in mind the short appeal deadline. Write to their offices (both of your U.S. Senators and your U.S. Representative) with a clear, concise explanation of the federal funding cancellation and its impact on their constituents. Consider requesting a meeting, as well. Search on Congress.gov to find contact information for your Members of Congress.

Explore Bridge Funding Options

Private foundations and local funders may offer emergency or rapid response grants. Consider reaching out to:
  • Local community foundations
  • State-level philanthropic networks
Inform your donors about the cancellation and its impact on your mission. Notify your program partners, as well as beneficiaries, if appropriate. Share what happened, what you’re doing about it, and how they can help.

How We Can Help

Our team is actively tracking developments, advocating for stability, and helping our nonprofit clients pivot strategically. Whether it’s identifying alternative funding sources, navigating new application landscapes, or amplifying your voice in Washington, we are committed to supporting the essential services your organizations provide to vulnerable communities across our country.

If your organization has been affected, don’t navigate this issue alone. We’re here to help you regroup, re-strategize, and continue serving your community. Reach out to our team for a free consultation.

McAllister & Quinn’s Expert Grant Services

Founded in 2004, McAllister & Quinn is a full-service government affairs and external funding consulting firm based in Washington, D.C. We specialize in helping clients navigate the complex world of competitive federal and non-federal grants, Congressionally Directed Spending requests, and large-scale government procurements, with deep expertise in strategy and proposal development.

We’ve helped our clients secure over $15 billion in funding over 20 years from competitive federal, state, and private funding sources.