Federal Funding in 2025:
Evolving Priorities and Strategic Language
Federal funding priorities are changing. Stay abreast of shifting federal funding priorities to inform program budgets, design, and implementation plans for upcoming projects.
Taylor Paiz | July 16, 2025
The federal funding landscape evolves with each new administration, and this year has been no exception. While keeping up with the changes has been uniquely challenging in 2025, key trends have started to emerge that will inform funding opportunity language, evaluations, and decisions across federal agencies for the next several years.
Successful grant applications of any type align with the funding organization’s top priorities and key terminology. Federal grant processes follow the same standards. Keeping up with the Trump administration’s priority areas is essential for preparing competitive applications. Some agencies have even purportedly conducted word-search audits for key terms such as “climate”, “justice”, “diversity/equity/inclusion/DEI”, or “disadvantaged,” and cancelled contracts or removed applications from consideration based on the search results. Re-aligning or re-phrasing certain terms moving forward could be imperative for ensuring that applications make it through a full review cycle.
The Trump administration’s priorities will also act as a guidepost impacting other sectors of funding. Federal funding trends trickle down, often affecting state, local, and sometimes even private sector opportunities. Some agencies, such as the Department of Labor or the Department of Education, are consolidating federal grant programs from previous years and releasing them as competitive opportunities at the state level.
As the federal funding landscape shifts, adapting your language and proposal strategy is essential to remain competitive. By monitoring evolving priorities and understanding the policy signals behind them, applicants can avoid disqualification and increase their chances of success. Capitol Funding Solutions (CFS) has compiled a list of funding topic areas and key terms to watch to help its clients stay proactive in preparing strong applications.
Trending Topics and Investment Priorities
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National defense and border security topics aligned with but not limited to:
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Strengthening the military
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Supporting law enforcement
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Reducing violent crime / prioritizing community safety
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Securing and strengthening the domestic supply chain
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Reducing reliance on foreign (especially Chinese) materials and goods
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Securing the domestic critical materials supply chain
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Producing critical minerals (including adding new minerals to the Department of Interior’s 2022 critical minerals list)
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Reinvigorating domestic production of fossil fuels (i.e. liquefied natural gas)
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Artificial intelligence (AI) research that advances American leadership in cutting-edge technology and preparing the American workforce for related jobs
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Workforce training that emphasizes skilled trades and apprenticeship models aligned with the “Make America Skilled Again” initiative, while removing or minimizing DEI programs from workforce grant budgets
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Reducing wildfire risk, supporting proactive forest management, and prioritizing domestic production of natural resources
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Education initiatives that promote school choice (or education choice) by expanding charter school options and that advance literacy instruction
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Transportation and infrastructure investments (especially within rail and maritime industries) are a priority, with the Department of Transportation poised to boost its marquee programs, such as INFRA, PIDP, and Small Shipyards
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Some discretionary grant programs will be consolidated into state formula grants from agencies such as the Department of Labor and the Department of Education
CFS will continue monitoring executive orders and newly released agency guidance, with live updates posted here. Follow CFS’ LinkedIn page to stay updated and to be among the first to learn about freshly opened funding opportunities. Capitol Funding Solutions is here to guide you through these changes, ensuring your applications remain aligned, compliant, and compelling.