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MillerMusmar CPAs | July 15, 2026

$300 Million Available for Physical Security, Cybersecurity, and Preparedness Improvements!

Executive Summary

The FY 2026 FEMA Nonprofit Security Grant Program (NSGP) is opening a competitive funding opportunity with $300 million in total available support. This year’s program has two equal funding streams: $150 million for the Urban Area stream (NSGP-UA) and $150 million for the State stream (NSGP-S). Eligible nonprofit organizations, including houses of worship, educational institutions, cultural organizations, and other public-facing nonprofits, can apply for grants to support facility hardening, physical and cybersecurity improvements, and preparedness activities.

For eligible 501(c)(3) nonprofits at risk of terrorist or other extremist attacks, this program represents a significant opportunity to fund priority security improvements while preserving mission-critical operating resources. However, nonprofit leaders need to act quickly. State Administrative Agency (SAA) subapplication deadlines are earlier than the federal deadline, making prompt action essential.

Why This Matters to Nonprofit Leadership

Many nonprofit organizations face real security challenges. Whether your organization is a house of worship, school, cultural center, or community facility, physical security and cybersecurity investments are increasingly important—and increasingly expensive. The NSGP provides a way to advance these investments without depleting operating funds or diverting resources from mission delivery.

What the Program Supports

The NSGP operates around three core pillars:

• Protect: Target hardening and other security enhancements for nonprofit organizations at high risk of attack.
• Prepare: Physical security, cybersecurity, planning, training, exercises, and related preparedness activities.
• Coordinate: Nonprofit preparedness efforts integrated with broader state and local initiatives through the State Administrative Agency.

Potentially Allowable Costs Include:

• Security cameras and surveillance systems
• Access controls and key-card systems
• Alarm systems and monitored detection equipment
• Bollards, barriers, fencing, and access gates
• Cybersecurity measures and assessments
• Security planning, training, and exercises
• Contracted security personnel (when allowed by NOFO requirements)

Generally Not Covered:

• New building construction
• General operating expenses
• Routine maintenance unrelated to approved security projects
• Costs outside the approved scope or grant period

Eligibility Requirements

Before investing time in an application, nonprofit leaders should confirm basic eligibility. Four key criteria should be met:

• Tax Status: Your organization must be an eligible 501(c)(3) nonprofit under the current NOFO.
• Facility Connection: Your organization must own or lease the facility or property to be secured.
• Risk Narrative: You must be able to explain your organization’s security risk and the need for your proposed investment.
• Project Fit: Your proposed costs must be security-related and align with current program requirements outlined in the Notice of Funding Opportunity (NOFO).

How the Application Process Works

Unlike many federal grant programs, nonprofits do not apply directly to FEMA. Instead, the State Administrative Agency (SAA) serves as the primary applicant, and nonprofits submit sub-applications through their state.

The Four-Step Application Pathway:

1. Review: Read the current NOFO and confirm your organization’s eligibility, appropriate funding stream, allowable costs, and required supporting materials.
2. Contact: Engage your State Administrative Agency and confirm its sub application deadline—this is typically earlier than FEMA’s federal deadline.
3. Prepare: Develop your project description, risk narrative, detailed budget, UEI information, and supporting documentation. Organize financial records and gather internal approvals.
4. Submit: Send your completed sub application to the SAA; the SAA then submits the final application to FEMA.

Timeline and Deadlines: Why Prompt Action Is Essential

Timing is critical for this grant opportunity. While many nonprofit leaders focus on FEMA’s federal deadline of July 24, 2026, the real working deadline is the State Administrative Agency’s subapplication deadline, and it comes earlier.

Key Dates:

• June 24, 2026: FY 2026 NOFO Posted. This begins the formal application window.
• State Deadline (Varies): Most State Administrative Agencies set their subapplication deadlines well before July 24. Contact your SAA to confirm your state’s deadline.
• July 24, 2026: Federal Deadline. FEMA’s deadline for SAA submissions to the federal government.

Determining Your Funding Stream

The FY 2026 program offers two equal funding streams, each with $150 million available:

• NSGP-UA (Urban Area Stream): Serves designated urban areas and large metropolitan regions. Your facility’s location determines whether it qualifies under this stream.
• NSGP-S (State Stream): Serves nonprofits outside designated urban areas. This stream reaches organizations in smaller cities, towns, and rural areas.

Before beginning your application, confirm with your State Administrative Agency which stream applies to your organization’s facility location. This determines your sub-application pathway and may affect program requirements and award amounts.

How Accounting Professionals Can Support This Process

MillerMusmar CPAs understands nonprofit grant administration and can help nonprofit clients navigate the financial and documentation aspects of the NSGP application process:

• Eligibility Discussion: Helping you frame questions to confirm with the SAA without replacing the SAA’s official eligibility determination.
• Budget and Support: Organizing the grant budget, classifying project expenses, and preparing financial documentation.
• Grant Accounting: Establishing tracking systems for grant revenue, eligible expenditures, and compliance documentation.
• Compliance Awareness: Discussing restrictions, documentation expectations, audit considerations, and ongoing grant management.

Important Disclaimer:

Our role is advisory and accounting-focused. FEMA and your State Administrative Agency retain all authority over program eligibility, subapplication decisions, award determinations, and compliance requirements.

Next Steps for Interested Organizations

Nonprofits interested in the FY 2026 NSGP should take the following actions promptly:

• Review the current NOFO: Visit FEMA’s Nonprofit Security Grant Program page to download and review the full Notice of Funding Opportunity. Pay careful attention to eligibility criteria, allowable costs, required documentation, and any state-specific requirements.
• Contact Your State Administrative Agency: Identify your SAA and reach out to learn the state’s sub application deadline, any state-specific forms or requirements, and guidance on which funding stream applies to your organization.
• Prepare Your Documentation Early: Begin developing your risk narrative, identifying security needs, preparing a detailed budget, and organizing supporting documentation. If you need accounting or financial review support, engage your CPA early.

Conclusion

The FY 2026 FEMA Nonprofit Security Grant Program presents a meaningful opportunity for eligible nonprofit organizations to strengthen their security posture—whether through physical improvements, cybersecurity enhancements, or preparedness planning. With $300 million in funding available and a clear application process, nonprofits should take prompt action to explore this opportunity.

The key to success is beginning early, confirming your state’s deadline, and organizing your documentation and budget before the submission window closes. Organizations that proactively engage their State Administrative Agency and work with their accounting and finance teams are best positioned to submit competitive applications.

Resources

For more information, visit FEMA’s Nonprofit Security Grant Program page or contact your state’s administration agency. If you’d like to discuss how MillerMusmar CPAs can support your organization’s grant preparation and accounting needs, we’re here to help.

• FEMA Nonprofit Security Grant Program: https://www.fema.gov/grants/preparedness/nonprofit-security
• FEMA Application Process Guide: https://www.fema.gov/grants/preparedness/nonprofit-security/apply
• gov Program Listing: https://www.grants.gov/search-results-detail/362925

Disclaimer

This article is for general informational purposes only and does not constitute legal, accounting, tax, cybersecurity, or grant-writing advice. Program rules, eligibility criteria, and deadlines may change. Nonprofits should consult directly with FEMA, Grants.gov, and their applicable State Administrative Agency for current and authoritative requirements.

Written by Samer Damer, CPA, Senior Accountant at MillerMusmar CPA. 

At MillerMusmar CPAs, our in-house experts are well-equipped to help nonprofit organizations navigate the FY 2026 Nonprofit Security Grant Program, from confirming eligibility and funding streams to organizing budgets and grant compliance documentation. Whether you need help preparing your sub application or setting up grant accounting systems, our team is here to support you every step of the way. Contact us at info@millermusmar.cpa or call +1-703-437-8877 to learn more about how we can help your organization secure and manage NSGP funding.