Among the flurry of activity in the first 100 days of the new Trump Administration, with its policy priorities making their way through the legislative process, there is also the consistent, annual federal funding process which begins in early February of every year.
Many large federal programs that easily come to mind for most Americans – such as Social Security, Medicare, the Highway Trust Fund, and recently, the Bipartisan Infrastructure Law (BIL) – are funded outside of the annual budget process. However, the day-to-day functioning of the federal government and the many programs it oversees are funded through the annual Congressional Appropriations legislation, which consists of multiple bills.
The President’s Budget, usually released at the beginning of February, marks the beginning of the annual budget process. Yet it is Congress that has the final say in the level at which the government agencies are funded. The House of Representatives and the Senate both have separate, but very similar appropriations processes. Appropriations bills are written by twelve Appropriations subcommittees, each with jurisdiction over one or more federal agencies. Each subcommittee releases (or, “marks up”) one bill covering funding for all its agencies, and the bill makes its way through the full House or Senate votes before being reconciled in “conference” and sent to the President for signature.
Recently, it has been common practice for Congress to bundle several appropriations bills together for ease of passage. It has also become commonplace to delay these bills due to political disagreements over a myriad of issues, both budgetary and policy-related. It is not unusual to have funding laws finally enacted months after the fiscal year begins in October, sometimes as late as spring. To cover the timing gap, Congress passes a Continuing Resolution (CR), effectively allowing the government to continue operating at the previous year’s levels. If Congress cannot agree on this step, the unfunded agencies shut down and furlough their employees, something that has recently happened more than once.
The FY26 Congressionally Directed Spending (CDS) application process will open soon! Interested in how your Community Project can benefit? Schedule a free 30-minute consultation HERE with our team of experts and advisors.
What is a Congressionally Directed Spending (CDS) Request?
Within funding for federal agencies’ operations and programs, members of Congress can request funding for a specific project, and, if included in the final version of the legislation, it instructs the agency to provide the funds to the named entity. It is effectively a guaranteed federal grant. Congressionally Directed Spending (CDS) has come under much criticism as wasteful “pork barrel spending.” It has nonetheless continued to thrive and get more popular because it allows members of Congress to do what they are elected to do – ensure that the federal government (and its funds) benefit their constituents. It is also an effective way for Congressional leadership to get individual members of Congress invested in the appropriation process. As CDS has become commonplace, so has the effort of requesting these funds, with hundreds of thousands of funding requests pouring into Congress every year.
Since 2022, around $39 billion in CDS funding has been allocated to a little over 20,000 projects. The past 3 years have also shown an overall increasing trend in both the amount of funding allocated as well as the number of projects being approved for funding. Funding in 2022 totaled around $9.1 billion, allocated to 5,000 projects, while funding in 2024 totaled around $14.6 billion, a 60% increase over 2022, and was allocated to just under 8,100 projects, a 62% increase over 2022.
In 2024, of the 8,100 CDS projects funded in 49 states, the most funding went to Texas, California, New York, Maine, and Mississippi, reflecting both the size of these states and the positions of their Congressional delegations. Each of these states received over $500 million in funding through the CDS and Community Project Funding (CPF) Programs. Other states that saw larger amounts of funding in 2024 are states located in the southeast such as Alabama, Louisiana, and Florida, all of which received more than $300 million in funding in 2024. States in the northern part of the United States, specifically Idaho, Montana, and Wyoming, received less than $100 million in funding each. This is also the same region of the U.S. where the only state to receive no funding, North Dakota, is located.
In 2023 and 2024, 19 federal agencies received just shy of $30 billion in funding from the CDS and CDF programs. Of the nineteen, the top three agencies that received the most funding in 2024 were the Department of Housing and Urban Development (HUD), the Department of Transportation, and the Department of Defense. The three agencies with the least amount of funding were the General Service Administration, the Office of National Drug Control Policy, and the National Archives and Records Administration. Of the $14.6 billion in funding allocated in 2024, the average award amount per project was around $1.8 million.
Table 1: Congressionally Directed Spending Provisions in the FY23 and FY24 Consolidated Appropriations Acts by Federal Agency
What is the Congressionally Directed Spending Request Process?
If federal funding could help your organization, below are a few steps to consider congressionally directed spending:
#1 Identify a Community Project
Identify the exact project that needs federal funding and its benefit to the community. Relevance and strategic purpose are important aspects of convincing Congress to provide funds. Have a clear budget in mind, including the amount of money, the timeline for spending, and the recipient. CDS projects are intended to support communities and therefore provide funding for initiatives such as economic development, infrastructure, environmental, and health. CDS is reserved only for non-profit entities, such as local governments, NGOs, and universities – for-profit businesses are explicitly excluded. However, given the number of government funds awarded every year to for-profits through grants and contracts, it is possible for Congress to provide additional funding for a program when a private recipient has already been identified by the agency and will thus benefit directly.
#2 Identify the Appropriate Agency Funding Source
Identify the federal agency and sub-agency responsible for funding the type of projects. Investigate direct interactions with the agency regarding the project. Even when funding is appropriated by Congress, the engagement of the funding agency is essential to success. The type and size of projects funded through CDS varies widely from subcommittee to subcommittee. Only certain appropriations bills and budget accounts are “earmarkable,” i.e. Congress consistently includes a list of CDS therein. Examples of agencies that have included CDS are the Department of Transportation, for highway, transit, and airport projects, and the Bureau of Reclamation, for water infrastructure. Another important aspect is whether the amount of funding provided by Congress is of an appropriate level for the project. Congressional appropriations are an annual process, and funding in one year does not guarantee funding in future years. Projects that request amounts outside of the typical funding level are usually not honored.
#3 Identify Congressional Sponsors
Identify members of Congress who would be solicited to sponsor the request. All CDS funding requests must be made by a member of Congress to the Appropriations Subcommittee – the committee does not accept requests directly from the taxpayers. Normally, Senators and Representatives request funding for their direct constituents. Often, other political, strategic, and community considerations make it logical to approach other Members too. A member’s ability to secure funding in the appropriations bill varies greatly and usually depends on whether he/she is a member of the Appropriation Committee, their seniority, and their political situation. It is critical to keep in mind a member’s ability to secure funding, and their personal attitude towards CDS (some members are opposed to CDS on budgetary concerns and do not engage, while others earnestly consider it an effective way to improve their constituent communities). It is even more important that the member who requests the project is truly interested in its success.
#4 Create a Compelling Project Narrative
A request for CDS can be thought of as a much-abbreviated federal grant application. Usually condensed to paragraphs, it needs to clearly describe the benefits to the community and the taxpayer. Any local support and significance should be clearly demonstrated. Normally, this information is submitted to Congress through a form application that they will provide.
#5 Conduct Advocacy and Build Congressional Support
The benefits of the proposed projects to the community as well as to the members of Congress and the taxpayer in general should be clearly communicated. Support from others who are willing to advocate directly to Congress is critical to success. Given that Congress gets thousands of requests for funding, one must have a strong project and strategic support in order to stand out.
#6 Follow the Appropriations Timeline
Congress follows a specific timeline for enacting appropriations bills, and seeking support outside of that timeline is often counterproductive. Appropriations subcommittees each announce a deadline for members to submit their requests – usually, they fall in April-May. Note that those are not deadlines for constituents to bring their requests forward. Individual Members have their own deadlines to allow time to evaluate the many requests they will inevitably get. It is advisable to communicate any congressional funding request to members by February or March to allow ample time for evaluation and further support.
Forward Considerations
Typically, Congress releases its list of congressionally funded projects either with the first draft of the bill (markup) or in the last step in legislature drafting (the House-Senate conference). Timing for those options can vary greatly – usually anywhere from the summer months to the following spring. Nothing is final until the President signs the bill. Even with the most successful CDS efforts, it may take almost two years to receive federal funding after initial advocacy begins. As is expected with any political process, delays and unanticipated setbacks are likely but can be mitigated with the right strategy and approach.
Federal Funding Parameters
CDS awards are considered federal grants and are managed by their host agency. They are subject to the same rules as any other federal contract, including requirements regarding reporting/information sharing, cost sharing, spending restrictions, and federal policy compliance.
Relevant Resources
- Senate Appropriations Committee: List of All Appropriations and Congressionally Directed Spending Requests from Last Year (FY2025)
- Congressional Research Service: The Appropriations Process – A Brief Overview
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© Copyright 2025. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
