Where Pennsylvania Funding Comes From
Pennsylvania distributes funding through three distinct channels: federal pass-through grants administered by state agencies, state-originated programs run by the Department of Community and Economic Development (DCED), and local procurement opportunities from counties, municipalities, and school districts. As of February 2026, FundingLandscape tracks 3,056 open funding opportunities tied to Pennsylvania recipients. Of these, 2,532 are federal contracts and grants flowing through agencies like the Department of Defense, Veterans Affairs, and Department of Energy. Another 495 come from state agencies, and the remainder from foundations and local government platforms. The state's primary economic development agency is DCED, which administers more than 80 programs covering everything from manufacturing tax credits to broadband expansion grants. Unlike Ohio's JobsOhio (a private nonprofit) or Virginia's public-private VEDP, DCED is a traditional executive agency with direct legislative appropriations. Its programs require formal applications and, in many cases, matching funds.
RACP: The Largest State Capital Grant Program
The Redevelopment Assistance Capital Program (RACP), administered by the Office of the Budget, is Pennsylvania's flagship capital grant program. It funds acquisition and construction of regional economic, cultural, civic, recreational, and historic improvement projects. RACE is currently accepting applications. The program opened a new window in September 2025 and has continued accepting applications into 2026. Key requirements: - Projects must have regional or multijurisdictional impact - Applicants must demonstrate 50% non-state matching funds at time of formal Project Management Proposal (PMP) submission - Eligible applicants: redevelopment authorities, industrial development authorities, counties, municipalities, local development districts, and public authorities - Grant awards are reimbursement-based; costs are paid out as construction progresses - The execution process takes up to 90 days after award RACE awards have historically ranged from $1 million to $30 million per project. The program has funded convention centers, sports facilities, university buildings, and industrial site remediation across the state. Contact: [email protected]
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Act 13 Impact Fee Programs: Open Through May 31, 2026
Act 13 of 2012 established impact fees on natural gas wells in Pennsylvania. A portion of these revenues flows to municipalities and counties in the Marcellus Shale region, and DCED administers several grant programs funded by this source. All of the following Act 13 programs are accepting applications through May 31, 2026: - Abandoned Mine Drainage (AMD) Abatement and Treatment Program: Funds reclamation of abandoned mine wells, remediation of AMD project sites, and water quality monitoring - Baseline Water Quality Data Program: Covers water sample collection and analysis for private water supplies near drilling operations - Flood Mitigation Program (FMP): Funds flood mitigation construction projects - Greenways, Trails, and Recreation Program (GTRP): Covers planning, acquisition, development, rehabilitation, and repair of greenways, recreational trails, open space, and parks - Orphan or Abandoned Well Plugging Program (OAWP): Pays to clean out and plug abandoned oil and gas wells and install stray gas mitigation systems - Sewage Facilities Program (SFP): Covers planning costs under Act 537, the Pennsylvania Sewage Facilities Act - Watershed Restoration and Protection Program (WRPP): Funds construction, expansion, repair, and maintenance of watershed infrastructure These programs primarily serve townships and counties in the southwest and northeast gas-producing regions, but municipalities statewide can access some programs. Applications go through DCED's Single Application for Assistance portal.
DCED's 80+ Programs: Business, Community, and Tax Credits
DCED runs the largest portfolio of economic development programs in the state. The programs FundingLandscape tracks that are currently open include: For businesses: - Manufacturing PA Training-to-Career Grant Program: Workforce development grants for manufacturers - Pennsylvania Minority Business Development Authority (PMBDA): Financing for minority-owned businesses - Research and Development Tax Credit Assignment Program: Transfers unused R&D credits to other taxpayers - Second Stage Loan Program: Loans for businesses that have graduated from startup programs - Video Game Production Tax Credit (VGPTC): Credit for qualifying game development expenditures in PA - Rural Jobs and Investment Tax Credit Program (RJTC): Credits for investors in rural fund managers - Qualified Manufacturing Innovation and Reinvestment Deduction: Tax deduction for qualifying capital investments For communities and municipalities: - Municipal Assistance Program (MAP): Grants for local government planning, act, and intergovernmental cooperation - Marketing to Attract Marquis Events (MTAME): Funding to attract major sporting and cultural events - Public School Facility Improvement Grant Program: Capital grants for school building upgrades - Rail Freight Program: Grants for rail infrastructure preservation - Sewage Facilities Program (SFP): See Act 13 section above - Section 108 Program: Federally-backed loans for community development projects - Tax Increment Financing (TIF) Guarantee Program: State-backed financing for TIF districts - Tourism Accredited Zoos Program: Operating support for accredited zoos - Waterfront Development Tax Credit Program (WDTC): Credits for waterfront redevelopment For energy and environment: - Solar for Schools Grant Program (S4S): Capital grants for solar installations at public schools - Solar Energy Program (SEP): Financing for commercial solar - Renewable Energy Program (REP): Financing for geothermal and wind projects - Unserved High-Speed Broadband Funding Program (UHSB): Grants for broadband infrastructure in unserved areas - Watershed Restoration and Protection Program (WRPP): See Act 13 section above Applications for most DCED programs go through the Single Application for Assistance at dced.pa.gov.
Federal Funding: 2,532 Open Opportunities and a Turbulent Year
Pennsylvania receives significant federal funding through direct agency contracts, particularly from the Department of Defense and Department of Veterans Affairs. The state has major defense installations including the Letterkenny Army Depot in Chambersburg, the Naval Inventory Control Point in Philadelphia, the Defense Distribution Center in New Cumberland, and numerous VA medical centers. As of February 2026, 2,532 federal opportunities are tagged to Pennsylvania recipients in FundingLandscape. The majority are procurement contracts rather than grants. Major active categories include: - Defense logistics and depot contracts (Letterkenny, Defense Distribution Center) - VA medical equipment and services contracts (Pittsburgh VA, Philadelphia VA) - EPA environmental remediation contracts (Superfund sites, particularly in the Delaware River basin) - DOE energy research and nuclear work (Bettis Atomic Power Laboratory in West Mifflin) Federal grant programs active in Pennsylvania include NSF research grants flowing to Penn State, University of Pennsylvania, Carnegie Mellon, Temple, and Pitt. NIH funding supports a substantial biomedical research sector in Philadelphia and Pittsburgh. The Pennsylvania Department of Transportation receives significant federal highway formula funds. The DOGE-driven reduction in federal workforce and contracts has created uncertainty in several areas. Pennsylvania has approximately 83,000 federal civilian employees, one of the highest concentrations in the country. Contracts tied to federal administrative functions are at higher risk than defense and healthcare contracts.
Where to Search for Pennsylvania Funding
Pennsylvania does not have a single, comprehensive grant portal. Funding is fragmented across several systems: - DCED Single Application for Assistance (dced.pa.gov): The primary state portal for DCED programs. Most business and community development grants require this system. - PA.gov Grants Search (pa.gov/grants/search): A newer AEM-based portal aggregating state grant listings across agencies. JavaScript-rendered, requires a browser. - SAM.gov: All federal contracts and grants above the micro-purchase threshold. Search by place of performance = Pennsylvania. - grants.gov: Federal grants only. Filter by state = Pennsylvania to find formula grants and competitive opportunities. - Pennsylvania eMarketplace: State procurement portal for supplier registration and bid notifications. - BidNet Direct Pennsylvania: Aggregates local government procurement bids from counties, municipalities, and school districts statewide. FundingLandscape tracks 265 active PA BidNet listings. For state economic development financing (loans, loan guarantees, tax credits), DCED maintains a separate set of applications for each program. There is no single application for the tax credit programs. Philadelphia and Pittsburgh run their own economic development operations separate from DCED: - PIDC (Philadelphia Industrial Development Corporation): The primary economic development lender in Philadelphia. Manages the Philadelphia Redevelopment Authority's commercial real estate programs. - Urban Redevelopment Authority of Pittsburgh (URA): Manages Pittsburgh's community development loan funds, facade improvement grants, and commercial corridor programs.
The OBBBA's Impact on Pennsylvania
The One Big Beautiful Budget Act (OBBBA) passed in 2025 made several changes that directly affect Pennsylvania's federal funding receipts. Medicaid is the most significant exposure. Pennsylvania expanded Medicaid under the ACA, covering approximately 3.3 million residents with a substantial portion through expansion. The OBBBA's phase-down of the 90% federal matching rate for expansion populations will require Pennsylvania to either increase state spending or reduce coverage. The Pennsylvania Department of Human Services has not yet published its response plan. Infrastructure programs from the bipartisan IIJA are continuing, but Pennsylvania must obligate remaining funds within federal timelines. The state has active projects in bridge repair (Pennsylvania has one of the largest backlogs of structurally deficient bridges in the country), rail, and broadband. The UHSB broadband program listed above uses both IIJA pass-through and state matching funds. Clean energy programs from the IRA continue in their current form through 2025, but investment tax credit availability for 2026 and beyond depends on Treasury guidance. Pennsylvania's large industrial sector (steel, chemicals, specialty manufacturing) has significant exposure to the IRA's Section 45X advanced manufacturing production credit and Section 48C qualifying advanced energy project credit.