Blog Post: Community Huddle Federal Funding

Community Huddle: Navigating the Changing Federal Funding Landscape: Insights and Strategies for Entrepreneurs and Incubators 

Huddle occurred on February 27, 2025

The federal funding landscape is constantly evolving, and with it comes both challenges and opportunities for those who rely on it. From changes in policy to shifts in funding priorities, staying informed and adaptable is key. That’s why we’re excited to invite you to a special, members-only huddle with Jason Rittenberg, the principal of Excel Regional Solutions, who will provide valuable insights into navigating the complexities of federal funding.

In this session, Jason will share insights based on his firm’s work with lobbyists and those on the ground in Washington, D.C. We’ll also hear from fellow entrepreneurs, incubators, and ecosystem builders about their experiences, concerns, and strategies for moving forward. Here’s what you can expect from this informative and interactive session.

Key Discussion Topics:

Throughout the meeting, a wide variety of organizations shared their thoughts, experiences, and strategies. Here are some key themes that emerged from the discussions:

Shifting Federal Funding Priorities and Their Impact

Many attendees shared how recent changes in federal funding have led to significant shifts in operations. For instance, organizations such as IncubatorWorks in New York and Surge in Michigan have faced challenges in securing federal grants, despite their ongoing efforts. Programs that rely on initiatives like the SBIR/STTR grant funding are uncertain about the future, especially as startups face delays in funding.

Key Takeaway: It's critical to diversify funding sources and avoid heavy dependence on federal grants. Some incubators are focusing more on local and state funding, while others are finding opportunities in private-sector partnerships.

Adapting to Federal Funding Challenges

One major takeaway was the importance of adaptability. For example, IncubatorWorks in New York, which provides crucial services to underserved communities, is preparing for potential cuts in federal funding. They are focusing on strategic diversification and finding alternative revenue streams. Additionally, Pennovation Works has been exploring how to better support startups while managing uncertainties around SBIR/STTR funding.

Strategy Implemented: Many organizations have reduced budget costs, let go of consultants, and ramped up efforts to build corporate sponsorships. They are also considering expanding paid internship programs, charging for co-working space, and finding new ways to generate income.

Emerging Opportunities Amidst the Uncertainty

While federal funding might be uncertain, opportunities still exist. TIC Incubator in Jamaica and other organizations are looking into alternative energy technology, which could open new doors for private funding. Furthermore, regions that had previously received significant support, like Arizona, are still seeing new funding opportunities from entities like the EDA and DOE.

Strategy Moving Forward: It’s important to keep an eye on these emerging opportunities, especially in sectors like clean energy. Those attending the huddle shared how they’re staying active by participating in discussions and exploring new partnerships that could offset the risks posed by changes in federal funding.

Looking to the Future: Building Resilience

In response to these uncertainties, many organizations are reassessing their plans and focusing on future-proofing their operations. Some are strengthening local and regional partnerships, while others are pivoting to ensure they have more diversified funding sources.

Proactive Steps:

• Holding onto cash reserves

• Expanding partnerships with nonprofits, for-profits, universities, and startups

• Creating or expanding paid programs, such as internship programs

• Reconsidering mission and vision statements to emphasize job creation and retention

Join the Conversation

This members-only huddle will provide you with the tools and strategies needed to adapt to the rapidly changing federal funding landscape. It’s not just about surviving—it's about finding innovative ways to thrive. We hope to see you in April in Philadelphia as we continue to collaborate, share ideas, and work together to overcome the complexities of federal funding.

Stay tuned for more details, and don't miss this opportunity to stay ahead of the curve!