The State of Illinois benefits economically when federal funds are invested in Illinois, and receiving an adequate amount of federal funding ensures that Illinois residents and businesses are getting a sufficient return on their federal taxes paid. However, Illinois receives less federal grants per person (or per capita) than the average state as well as states similar in population size . Most federal grant funding is distributed by formula, and major factors that affect federal grant funding include Medicaid status, geography, income and poverty levels, demographics, and population. While the state has limited ability to influence the key factors that affect federal formula-based grants, Illinois can take more proactive measures to increase the competitiveness of Illinois-based stakeholders applying for competitive federal grants. Federal grants typically require a match, which is the non-federal share of the project costs that a grantee must contribute to achieve the purposes of the award. The requirements for the match, such as the match percentage and sources, differ by federal agency and program. For example, some grants may require as little as a 20 percent match from the grantee, although it is not uncommon for grants to require a 50 percent match. In some instances, there is no formal matching requirement, although the percentage of the match provided by the grantee is usually used as a metric for evaluating the competitiveness of an application. The Illinois Department of Commerce and Economic Opportunity’s (DCEO)’s Federal Grant Support Program will make $22 million available to Illinois-based proposals seeking competitive federal grants. This match program will encourage more applicants to apply for federal grant opportunities, provide critical assistance to meet the minimum match eligibility requirements, increase the competitiveness of applications, and provide the State of Illinois with an opportunity to make a firm commitment and demonstration of support for projects that are well aligned with the State’s economic development goals and priorities.
