What cities need to know
The federal government has recently revised its Uniform Grants Guidance to clarify how it will manage the $1.2 trillion in grants and financial assistance that it oversees, including those funded by the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). The latest revisions make explicit that federal funds can be used for certain activities, in particular:
- Community Engagement: The new guidance requires federal agencies to encourage community engagement and clarifies that federal dollars can be used for these activities.
- Data and Evaluation activities: Clarifies that grantees are allowed to spend federal funds on data infrastructure, evidence-building, and evaluation, including staffing costs.
Community engagement is a crucial component of infrastructure projects, and a priority for the implementation of BIL. The Uniform Grants Guidance makes it easier for cities to implement strong community engagement provisions by clarifying that grantees can use federal funds to cover specific expenses, namely involving community members in program development and implementation.
These costs may include:
- Stipends, per diems, or travel allowances to reduce financial barriers to community engagement.
- Printing materials in another language to make engagement efforts accessible to all residents.
Using Funds for Evaluation and Data
The OMB Uniform Guidance also clarifies that federal funds can support staffing for data collection and analysis and for in-house or contract evaluations. Allowable evaluation activities include:
- Evidence reviews
- Evaluation planning and feasibility assessment
- Conducting evaluations and sharing results
- Personnel or materials costs related to building and using evidence for program design.
Furthermore, federal funds can be used for data costs, including expenditures needed to gather, store, track, manage, analyze, disaggregate, secure, share, or publish data. This includes:
- Data systems and dashboards
- Personnel for data management
- Cybersecurity and building integrated data systems that allow agencies to share data.
Prioritizing Evidence-Based Practices
The guidance emphasizes the importance of evidence-based practices. In their implementation memo, OMB instructed federal agencies to prioritize evidence-based practices in competitive grant programs. Cities that incorporate evidence-based strategies for transportation or housing may be able to submit more competitive grant applications.
More information can be found in RFA’s local practice guide, which includes best practices for data, evaluation, and community engagement readiness.