REI Systems Unveils Insights on Grants Management Challenges and AI Opportunities in Annual Survey

Overview



REI Systems, a prominent provider of technology solutions for government, has published its findings from the 2026 Annual Grants Management Survey. This survey, a collaboration with the National Grants Management Association (NGMA) and George Washington University, marked its 10th anniversary and gathered input from 773 professionals in the grants sector. The participation represented the highest ever recorded, indicating the growing interest and concern within the grants community.

Key Findings



The report highlights critical challenges that are reshaping the landscape of grants management across various sectors, including federal, state, local governments, nonprofits, and the private sector. Notably, funding uncertainty surfaced as the primary challenge, with many organizations grappling with the implications of fluctuating financial support. Additionally, pressing issues surrounding workforce capacity and the demands of data reporting were underscored.

Heather Morgan, who oversees the grants management division at REI Systems, emphasized the survey's importance:
“This year's results show organizations balancing funding uncertainty, increasing data and reporting demands, and workforce challenges, while also embracing technology and new approaches to improve efficiency and strengthen program outcomes.”


Measurement of Grant Outcomes



An alarming trend was revealed regarding the assessment of grant outcomes. About 70% of federal respondents, half of state and local respondents, and 46% from NGOs indicated they either saw no measurable improvement or were unsure about the outcomes of their programs over the past year. The survey identified barriers such as inadequate data analysis tools, lack of staffing, and the absence of defined performance benchmarks as significant hurdles.

Margaret Pearson, Deputy Controller in the Office of Federal Financial Management, advocated for setting clear performance goals from the onset:
“Demonstrating results is essential to maintaining the effectiveness and accountability of federal grants.”


Funding Challenges



Funding volatility emerged as the frontrunner among the challenges identified by over 70% of the survey's participants. Despite this instability, experts assert that grants remain essential for providing services and bolstering communities. Chad Clifford, Executive Director at the U.S. Department of Health and Human Services, affirmed,
“Grants are not going anywhere. The focus is on ensuring programs deliver measurable results and improving how grants support American lives.”


Technology and AI Integration



While grappling with funding and workforce challenges, there is a notable push towards technological modernization and the integration of artificial intelligence (AI) in grants management processes. Survey results indicate that 60% of respondents see significant potential for AI in the pre-award portion of the grants lifecycle, while 42% see value in post-award progress reporting and 29% in financial reporting.

Federal leaders discussed their ongoing experiments with AI technologies, such as techniques for reviewing documentation and analyzing budgets. Andrea Brandon, Deputy Assistant Secretary at the U.S. Department of the Interior, noted the benefits of these innovations:
“These tools can help reduce administrative burden, but strong human oversight remains essential.”


Looking Toward the Future



As the grants management landscape evolves, survey respondents identified key forces that will likely influence its future. The overarching themes suggest a pivot towards more digital, data-driven, and adaptable approaches, aligned with shifting policy priorities and technological advancements. Morgan commented on this transformative period, stating,
“By utilizing emerging technologies alongside skilled professionals and fostering robust collaborations, we can enhance the impact of grants within communities.”


Since its inception in 2016, the Annual Grants Management Survey continues to serve as a pivotal resource for insights into trends, challenges, and opportunities that define the grants ecosystem. For more detailed results and insights, visit REI Systems' website to access the complete survey findings.

About REI Systems


REI Systems is committed to delivering innovative technology solutions that empower various organizations—federal, state, local, and nonprofits—to effectively meet their missions. Celebrated for over 35 years, the company prides itself on seeking measurable outcomes that align with customer goals, reflecting its dedication as a 100% employee-owned enterprise.

For further information about REI's offerings, please visit REIsystems.com.

Topics General Business)

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