Summary
The Grants Revenue Fund Fact Sheet reviews the City’s reliance on grant funding, which accounted for $1.5 billion in revenue in FY23, representing 16.7% of all City revenues. The federal government has been the largest source of grants since FY21, with American Rescue Plan Act (ARPA) funds playing a major role in supplementing city finances. Human services, behavioral health, and public health received the largest grant allocations, with the Department of Human Services alone accounting for over one-third of all grant spending. The report highlights the complexity of grant management, including reimbursement delays and restrictions on administrative costs. Since most grants are awarded for specific purposes, they provide limited flexibility in addressing broader financial challenges. As ARPA funding expires, the City may need to reassess its reliance on grants and seek alternative funding sources for essential services.