Tackling Uncertainty: Congressionally Directed Spending Requests

One of the most common challenges planners are confronting in the wake of changes in federal policy is how to cope with funding uncertainty.

In listening sessions and conversations with APA members, the issue of advancing projects and plans amid questions about current and future federal grants has been a constant refrain. And, for good reason, as communities face funding suspensions and questions about how to cover potential gaps. Many grants that were awarded but not fully contracted have been called into question, leaving locals with plenty of questions and uncertainty.

With the new unpredictability of some federal grants, many communities are looking for other ways to drive federal investment into local planning and projects. In many cases, formula-based federal funding is a good option, however, those programs may face new fiscal pressure, and the very nature of their broad flexibility means that competition among projects can be fierce.

An alternative, or perhaps a supplement, to either discretionary grants or formula-based funding may be congressionally directed spending, known as "earmarks." These are funds requested directly by a member of Congress for state or local initiatives. The project and funding amount are then written directly into an appropriations bill. This statutory status makes them less vulnerable to agency policy shifts and more predictable than being eligible under a formula program.

Navigating Earmark Funding

Earmarks have only recently returned to the congressional toolbox. Following a series of controversies and criticisms, Congress essentially eliminated the process with a moratorium created in 2011. The practice was restored in 2021 with new requirements for transparency and accountability. Rules were put in place to try to ensure that funded projects were part of state or local plans.

Since the practice was resurrected in 2021, the use of earmarks has grown in each appropriations cycle, with awards flowing to requests from both sides of the aisle. Many of the funding requests have been for transportation and community development projects.

While these congressionally directed spending allocations may be safer than other federal options, they are limited in number and can be difficult to secure.

Here is what you need to know to navigate the process:

Understand the rules

The congressionally directed spending process is governed by specific rules established by the House and Senate. All requests must be submitted by a congressional office and must specify a project and location. For-profit entities are not eligible recipients, and requests are only available in connection with certain federal program areas. Total funding for earmarks is capped at one percent of discretionary spending, so there's plenty of competition.

Individual offices typically have a form to use to submit requests, but it is important to engage with the staff in addition to submitting a form. Offices also must post their requests publicly and demonstrate no direct self-interest. There are deadlines for the offices to submit requests, and most of those are in May. So, for many projects, you may need to plan for submissions for the next fiscal year.

Identify potential projects

Review your plans for projects that are ready to go and meet the criteria. Many different project types are eligible, but congressional offices often evaluate factors like local impact, inclusion in existing plans, broad support, and demonstration of financial commitment.

Consider projects that may have been left in limbo by funding suspensions or uncertainty. Although earmarks are thoroughly bipartisan, keep in mind that Republican leadership on appropriations committees will be sensitive to how the benefits of projects are framed and communicated.

Build broad local or regional consensus and support

Most successful congressionally directed spending requests demonstrate support from a broad range of local groups and leaders. Coalition letters of support can be crucial, and the support and engagement of local elected leaders are usually essential.

Think about ways to broaden the appeal of project rationales. Look for opportunities to show support from both private sector leaders and neighborhood organizations. Work locally to reach consensus on the project or projects to request. Having broad support for a single project sends a strong message.

Work collaboratively and closely with your congressional delegation

In any advocacy, it is important to build a strong relationship with congressional offices and staff. This is especially true for a competitive process like earmarks.

Start conversations early. Explain the context. Make sure that offices hear from a range of voices — local officials, local organizations, and key stakeholders. Keep in mind that offices often work together when a project provides regional benefits, even across party lines.

Advocating for a congressionally directed spending request can also be done in the context of explaining the value and importance of current grant-funded projects and continued funding for key federal programs. That kind of coordinated advocacy messaging, providing deep local context and storytelling, can be especially powerful.

A Comprehensive Approach

Earmarks, given their inherent limitations and competitiveness, are not a panacea for funding uncertainty. But they offer a pathway for some high-profile local projects, and merely beginning the conversation can help congressional offices understand what's at stake and the important local impacts and outcomes. These requests can be part of an effective, comprehensive approach to engaging Capitol Hill in support of what matters locally.

Part of combatting uncertainty is connecting with Congress, localizing the issues, and explaining the value of key projects and grants. Pursuing a congressionally directed spending request can be an element of your advocacy strategy and help fill funding gaps with more certainty.