NSGP step by step

After an NSGP award: what to do first and what has to wait

The State Administrative Agency turns FEMA's award into a subaward with its own budget, dates, conditions, and reporting schedule. Use the signed subaward as the controlling record.

Updated Reviewed against the FY2026 NSGP NOFO, Preparedness Grants Manual and FEMA Information Bulletin 5863 min readBy Bedrock GrantsReport a correction
Short answer

An FY2026 Nonprofit Security Grant Program (NSGP) award announcement does not authorize a nonprofit to spend. The State Administrative Agency (SAA) must issue a subaward, and the nonprofit must clear the conditions that apply before it commits funds or starts work. Subrecipients cannot claim pre-award costs, and FEMA must complete any required environmental review before federal funds are released for a project (FY2026 NOFO).

How the award reaches you

FEMA awards NSGP funds to the State Administrative Agency (SAA), which makes a subaward to each selected nonprofit. The award announcement does not authorize the nonprofit to spend. The signed subaward controls its budget, conditions, forms, and deadlines.

FEMA announced FY2026 awards on September 28, 2026. Although the FY2026 NOFO gave an SAA 60 days to accept its federal award, FEMA's Information Bulletin 586 set December 15, 2026, as the acceptance deadline. After FEMA releases the last hold, the Preparedness Grants Manual, section 9.3, gives the SAA 45 days to pass funds through. The nonprofit's subaward may arrive later than the award announcement while the SAA completes those steps.

The FY2026 NOFO projects a federal period of performance from September 1, 2026, through August 31, 2029. A subaward must state its own period-of-performance and budget-period dates under 2 CFR 200.332(b). Use the dates in the signed subaward.

Start with the signed subaward

  • Use the approved budget in the subaward as the working budget. It may differ from the application.
  • Identify every condition that must be cleared before a contract, order, deposit, or installation.
  • Record the subaward's budget period, period of performance, report dates, claim deadlines, and closeout date.
  • Confirm the payment method, payee-registration steps, and the SAA contact for approvals.
  • Track the subaward separately in the accounting records from the start.

Florida subrecipients also need the state-specific steps in Florida security grants.

Post-award roadmap

Several approvals can apply to one purchase. Selection, equipment allowability, environmental clearance, procurement, and scope approval are separate decisions.

Where to go for each NSGP post-award decision
StageFirst questionDetailed guide
Environmental reviewWhat must wait for written environmental planning and historic preservation (EHP) clearance?NSGP EHP review
ProcurementWhich purchasing method, competition rules, and conflict checks apply?NSGP procurement requirements
Purchase and paymentDoes the SAA use reimbursement or an advance, and what records support payment?NSGP reimbursement claims
Changes and delaysIs this a budget move, a scope change, or a request for more time?NSGP budget and scope changes
Reports and closeoutWhat is due, which property records continue, and when may the subaward close?NSGP reporting and closeout
MonitoringWhat will the SAA test in a desk review or site visit?NSGP monitoring

What must wait

The FY2026 NOFO says subrecipients cannot claim pre-award costs. After the subaward is signed, follow the SAA's written direction described in NSGP EHP review before committing funds or starting reviewed work. An item appearing on FEMA's Authorized Equipment List does not by itself clear EHP review, procurement, or the subaward's conditions. See what NSGP pays for for the equipment rules.

Budget and scope changes

A change in scope or objective needs prior written approval under 2 CFR 200.308(f)(1). The SAA sends an NSGP scope-change request to FEMA, and the changed work must wait for approval. A budget-only move may follow a different rule, and the subaward may require the SAA's approval even when FEMA's Preparedness Grants Manual, section 9.2, requires only a report. Ask before spending. The budget and scope changes guide covers substitutions, overruns, savings, site changes, personnel changes, and extensions.

Reports and monitoring

The subaward sets the nonprofit's report forms and due dates. File a no-activity report when the SAA requires one. The reporting and closeout guide covers federal and state calendars and equipment records. The monitoring guide explains desk reviews, site visits, findings, and corrective action.

Closeout and record retention

The final claim alone does not close the subaward. 2 CFR 200.344(b)–(c) normally gives a subrecipient 90 days after its period ends to submit final reports and liquidate obligations, subject to an earlier date agreed with the SAA or a justified extension. Ordinary project costs must be incurred during the approved budget period; 2 CFR 200.403(h) sets separate timing for administrative closeout costs. The reporting and closeout guide explains that exception, the required submissions, equipment duties, and record retention.

Sources

  1. FEMA, FY2026 Nonprofit Security Grant Program NOFO
  2. FEMA, Information Bulletin 586: Award Acceptance Extension for FY2026 Non-Disaster Grant Programs (October 7, 2026)
  3. FEMA, Nonprofit Security Grant Program (FY2026 award announcement)
  4. FEMA, Preparedness Grants Manual, FM-207-23-001 (July 2026)
  5. 2 CFR 200.308, Revision of budget and program plans
  6. 2 CFR 200.332, Requirements for pass-through entities
  7. 2 CFR 200.344, Closeout
  8. 2 CFR 200.403, Factors affecting allowability of costs

Not sure which security grants fit?

Tell us about your organization. We’ll give you a free preliminary read on which security grants may fit, what they could pay for, and what applying involves. The administering agency makes the final eligibility call.