A State Reshaping Its Funding Sources
Florida's $114.8 billion budget for FY 2025-26 is built on a contradiction. The state has more resilience funding than it has ever had, a $1.4 billion Everglades investment, record gaming compact revenue, and $14.5 billion in reserves. At the same time, it faces a projected $6.9 billion deficit by FY 2027-28, a SNAP error rate that could cost $1 billion annually in federal penalties, and the cancellation of $293 million in FEMA resilience grants that were already allocated. The three forces shaping Florida's funding in 2026 are unrelated to each other but compound in ways that matter for anyone seeking state money. First, the Seminole Gaming Compact is delivering roughly $750 million per year, and the legislature directed 96% of it to environmental and resilience programs. Second, the OBBBA created SNAP cost-sharing penalties tied to error rates, and Florida's rate is 2.5 times the threshold. Third, Governor DeSantis abolished Enterprise Florida in 2023 and repealed the Qualified Target Industry tax refund, replacing broad incentives with targeted bets on space and semiconductors. The practical effect: environmental and resilience funding is strong and growing. Housing programs are funded but unstable. Biomedical research is unique but modest. Economic development incentives have narrowed. And a fiscal cliff is approaching that will force difficult choices about which programs survive. This guide covers what is currently funded, what is at risk, and where the money is actually moving.
Resilient Florida: The Program That Survives DOGE
Resilient Florida is one of the most interesting state programs in the country right now, not because of its size but because of how it is funded. The program receives $150 million per year for flooding mitigation, sea level rise adaptation, hurricane-resistant infrastructure, and stormwater systems. An additional $20 million goes to local government resilience grants. What makes it unusual is the funding source: the Seminole Tribe Gaming Compact, signed in 2021, generates an estimated $750 million annually in revenue-share payments with a guaranteed minimum of $2.5 billion over the first five years. In April 2024, SB 1638 directed 96% of that revenue to environmental and resilience programs. The specific allocation: the lesser of 26% or $100 million goes to the DEP Resilient Florida Trust Fund, with the remainder going to the Water Protection and Sustainability Program Trust Fund. Over time, compact revenues could provide approximately $450 million per year for the combined programs. The political context matters. The legislature reauthorized Resilient Florida unanimously; it passed both chambers with zero opposing votes. Because the program is entirely state-funded through compact revenue rather than federal dollars, it is completely insulated from DOGE cuts and federal grant cancellations. This is not a small distinction. FEMA ended the Building Resilient Infrastructure and Communities (BRIC) program in April 2025, and Florida lost $293 million in BRIC allocations. Only $19 million of that $293 million had been spent; the rest is gone permanently. Canceled projects include flood-prone road elevation in Jacksonville, a hurricane safe room in Key West, and canal flood mitigation in Miami-Dade and Broward counties. For organizations working on infrastructure and resilience, Resilient Florida is now the primary funding source for adaptation projects in the state. The program covers flooding mitigation, stormwater infrastructure, elevating roads, community safe rooms, and canal systems. Applications go through the DEP's new Water Restoration and Resilient Florida Grants Portal.
🔍 Search related opportunities now
The SNAP Crisis: A $1 Billion Problem Starting in 2028
This is the single largest fiscal risk most Florida organizations are not tracking. The OBBBA introduced cost-sharing penalties for states with SNAP (food stamp) error rates above 6%. Florida's current error rate is 15.13%, with a three-year average of 12.1%. That is 2.5 times the threshold. If the rate stays where it is, Florida would pay 15% of total SNAP benefits, approximately $1 billion per year, starting in 2028. The Florida Policy Institute projects total SNAP funding losses of $1.6 billion in 2028 alone when combined with benefit reductions. The MyACCESS portal, Florida's benefits application system, has been cited as a major contributor to the error rate. The system processes applications for SNAP, Medicaid, and cash assistance, and administrative errors in eligibility determination drive the high rate. This matters for grant seekers in two ways. First, organizations working on food security, benefits administration, workforce development, or social services should expect the state to redirect resources toward reducing the error rate. Second, the $1 billion annual penalty will hit at the same time as a projected $6.9 billion general deficit in FY 2027-28. That combination will force cuts to discretionary programs. Florida never expanded Medicaid, so the OBBBA's expansion-specific provisions (ending the enhanced 90% federal match) do not apply directly. But new requirements still affect the state: eligibility redeterminations must happen every six months instead of annually starting December 2026, creating a significant administrative burden. Work requirements of 80 hours per month begin January 2027 for adults aged 19 to 64 with incomes between 100% and 138% of the federal poverty level. The broader economic impact projection: approximately 46,500 jobs lost by 2029, $4.5 billion in GDP reduction, and $366 million in lost state and local tax revenue.
Everglades, Water Quality, and Environmental Funding
Florida's environmental funding is at a historic high, driven by the gaming compact revenue and sustained legislative support for Everglades restoration. The FY 2025-26 budget allocates $1.4 billion for Everglades restoration and water quality, one of the largest single-year investments in the program's history. This includes $830 million for Everglades restoration projects ($550 million for the Comprehensive Everglades Restoration Plan), $460 million in water restoration grants, and $150 million for the Water Quality Improvement Grant Program. The FY 2026-27 proposed budget sustains the $1.4 billion level, with $408 million for targeted water quality improvements, $100 million for the Lower Kissimmee Basin Stormwater Treatment Area, $50 million for nutrient reduction, and $50 million for Caloosahatchee and St. Lucie estuaries discharge reduction. Florida Forever, the state's land conservation program, has a proposed $115 million for FY 2026-27. The program has protected 364,117 acres through 200 conservation easements over 25 years and purchased over 1 million acres since 2000. The gaming compact revenue makes this funding more stable than most state environmental programs, but it competes with the same fiscal pressures affecting everything else. By FY 2027-28, the state will need its reserves for SNAP penalties, Medicaid costs, and disaster recovery, all of which will create pressure on environmental appropriations. For organizations working on environmental projects, the DEP's consolidated grants portal is the entry point. TCEQ-equivalent programs in Florida operate through separate DEP divisions for water quality, coastal management, brownfields, and solid waste. The DERA State Grant Program funds diesel emissions reduction. Coral reef restoration grants continue through the state's Coral Reef Restoration and Recovery Initiative, covering the only barrier reef in the continental United States.
Housing: The Live Local Act and the Sadowski Problem
Florida's housing funding is substantial on paper and unstable in practice. The Live Local Act (SB 102, 2023) established a $150 million per year recurring appropriation for the State Apartment Incentive Loan (SAIL) program through FY 2032-33, totaling $1.5 billion over the decade. The act also requires counties to allow multifamily and mixed-use residential development in any commercial, industrial, or mixed-use zone if at least 40% of units are affordable for 30 years or more. The FY 2025-26 housing budget includes $163.8 million to $182.6 million for the State Housing Initiatives Partnership (SHIP), $150 million for Live Local SAIL from General Revenue plus $72.9 million from the Governor's budget for additional SAIL, and $50 million for the Hometown Heroes program. Hometown Heroes provides up to $35,000 in down payment and closing cost assistance as a 0% interest, non-amortizing second mortgage for first-time homebuyers who are teachers, nurses, law enforcement officers, firefighters, and other essential workers. The instability comes from the Sadowski Housing Trust Fund. The documentary stamp tax (0.07% on deed transfers) is supposed to fund affordable housing. In FY 2024-25, deposits were $154.2 million for local government and $65.7 million for the state fund. But the legislature has swept more than $2.3 billion from the Sadowski Fund since 2002, redirecting housing money to general revenue. Recent legislation proposes reinstating the general revenue service charge, which would eliminate the additional $150 million per year distribution created in 2023. For organizations working on housing and community development, the Live Local Act created new zoning flexibility, but the long-term funding depends on whether the legislature continues to protect the Sadowski Trust Fund or sweeps it again.
Biomedical Research, Space, and Economic Development
Florida's state-funded biomedical research programs are unusual. Most states do not fund independent cancer and disease research at the state level. The Florida Department of Health administers three programs: the James and Esther King Biomedical Research Program (cancer, cardiovascular, stroke, pulmonary disease), the Bankhead-Coley Cancer Research Program (cancer research capacity and clinical trials), and the Live Like Bella Pediatric Cancer Research Initiative (childhood cancer). In FY 2023-24, these programs awarded $18.4 million across 34 new grants. That is modest by any standard: Texas's CPRIT has awarded $4.05 billion, California's CIRM had a $5.5 billion bond measure, and Florida received only $405 million in NIH awards compared to Texas's $1.9 billion. For healthcare and biomedical organizations, the state programs provide an alternative to NIH with faster review timelines, but the award sizes are small. FY 2025-26 Funding Opportunity Announcements are currently active through the Department of Health. Economic development shifted significantly in 2023. Enterprise Florida, the state's primary economic development organization for three decades, was abolished by the Governor. The Qualified Target Industry (QTI) Tax Refund was repealed. Functions moved to the renamed Florida Department of Commerce (formerly Department of Economic Opportunity). A new entity called Select Florida was created with $5 million for international trade. The state's bets are now concentrated. Space Florida has $10 million for the Aerospace Investment Fund, $93 million through the FDOT Spaceport Improvement Program, and $5 million for wastewater capacity for commercial launch providers. Cumulative state investment: $531 million, leveraging $3.3 billion in private industry funding. Semiconductor investment is growing. The University of Florida leads a $285 million nationwide semiconductor research institute. ELSPES is building a $470 million semiconductor manufacturing facility at NeoCity in Osceola County. The NSF Florida Semiconductor Engine led by BRIDG focuses on advanced chip packaging. Valencia College launched the first Associate of Science in semiconductor engineering technology in the state. For tech startups, Florida's economic development toolkit is narrower than it was two years ago. The broad incentive programs are gone. What remains is targeted toward space, semiconductors, and research partnerships with state universities.
The Fiscal Cliff and What It Means for Grant Seekers
Florida's fiscal position is strong today and deteriorating on a known timeline. The state holds $14.5 billion to $15.7 billion in total reserves: $4.2 billion in unallocated General Revenue, $4.9 billion in the Budget Stabilization Fund, $1 billion in the Emergency Preparedness and Response Fund, and $2.2 billion in reinsurance assistance. The FY 2025-26 budget is $114.8 billion, down 1.5% from the prior year. But the projections are clear. The FY 2026-27 deficit is estimated at $1.5 billion (revised down from an earlier $2.8 billion projection). The FY 2027-28 deficit jumps to $6.9 billion, driven by K-12 education costs and Medicaid expenditures rising at 8.5% annually. The health insurance trust fund alone faces an estimated $795.8 million deficit in FY 2027-28. Layer the OBBBA impacts on top: $1 billion or more in annual SNAP penalties starting 2028, increased Medicaid administrative costs from six-month redeterminations, and potential FEMA restructuring that could force the state to absorb more disaster costs from its own reserves. Florida has no state income tax (it is constitutionally prohibited), which limits revenue flexibility. The practical implication for grant seekers: state programs funded through dedicated revenue sources (gaming compact for resilience, documentary stamp tax for housing, lottery for education) are more stable than programs funded through general revenue. Programs that are "subject to appropriation" rather than guaranteed will face cuts first when the deficit arrives. Florida's fiscal year runs July 1 through June 30. The state procurement system operates through MyFloridaMarketPlace (MFMP). For federal opportunities, SAM.gov registration is required. The Visit Florida tourism marketing budget is $80 million, sustained at the same level for FY 2026-27. For organizations that previously relied on federal programs, the shift is significant. Florida did not join the coalition of states suing to reinstate BRIC funding. There is no state equivalent to NYSERDA or California's cap-and-invest to backfill lost federal environmental or energy programs. The gaming compact revenue is the closest thing Florida has to a permanent, federal-cut-proof funding source, and it is directed almost entirely toward water quality and resilience. Search Florida funding opportunities