You’ve probably heard the rumors. Maybe you saw a headline about a "freeze" or a "thaw" and wondered if the check was ever going to show up. Honestly, the situation with trump federal grants and loans over the last year has been a wild ride of executive orders, court battles, and a massive shift in who actually gets the cash.
It hasn't been business as usual. Not even close.
The Great Pause and the Courtroom Drama
When the administration took over in early 2025, they didn't just walk in and change the stationery. They hit the brakes. Hard. On January 27, 2025, a memo went out that basically put a "temporary pause" on almost every federal grant and loan program you can name. We’re talking about billions of dollars in limbo.
The logic was simple, if a bit aggressive: they wanted to make sure the money wasn't going toward things like Diversity, Equity, and Inclusion (DEI) initiatives or "Green New Deal" projects. If your project had the word "environmental justice" in the description, you were likely looking at a frozen bank account.
But then the judges stepped in.
Federal courts, specifically in places like Rhode Island and D.C., told the administration they couldn't just stop payments on money that Congress had already legally approved. Judge John J. McConnell Jr. was particularly blunt, threatening criminal contempt if the funds weren't unfrozen. By February 2025, the administration had to start releasing the money, but the "vibe" had already changed. The era of easy-access climate grants was effectively over.
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Small Business Loans: Harder to Get, but More Money Available?
If you're a small business owner looking at SBA 7(a) or 504 loans, the rules of the game have been rewritten. It’s sort of a "good news, bad news" situation.
The SBA, now under the leadership of Kelly Loeffler, has actually bragged about delivering record capital—nearly $45 billion in FY2025. But—and this is a big "but"—they’ve made it way tougher to qualify.
Here is what changed in the fine print:
- Citizen-Only Rules: You now need 100% of the owners to be U.S. citizens or lawful permanent residents. The old 51% rule? Gone.
- Credit Scores: The minimum score for small loans jumped from 155 to 165.
- Collateral: They used to only ask for collateral on loans over $500,000. Now? If you're asking for more than $50,000, they want to see your assets.
- The "No Credit Elsewhere" Test: Lenders now have to prove, with actual documentation, that you couldn't get a loan anywhere else. No more "taking your word for it."
Basically, they are trying to "return to the basics." They cut the SBA workforce by about 50% and told everyone to get back to the office. The goal is to stop the fraud that happened during the pandemic years, but for a legitimate startup, it feels like a lot more red tape.
Manufacturing is the New Golden Child
If you make things—physical things—you are the administration's favorite person right now. The "Made in America Manufacturing Initiative" is where the actual grant and loan perks are hiding.
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For fiscal year 2026, the SBA is waiving most upfront fees for small manufacturers. If you’re in NAICS categories 31-33, you might be looking at a 0% upfront fee on 7(a) loans up to $950,000. They also launched something called the MARC Loan Program (Manufacturer’s Access to Revolving Credit). It’s specifically designed to help people reshore their supply chains.
They even created a new "Manufacturing in America Grant" that provides up to $1.1 million for training. It’s a complete 180 from the previous focus on tech startups or service businesses.
Farming and the "Make America Healthy Again" Pivot
Agriculture is another weird spot. For a while, rural energy grants (REAP) were totally frozen. Farmers who wanted to put up solar panels were basically told to wait.
However, there’s a new focus called the Regenerative Pilot Program. As part of the "Make America Healthy Again" (MAHA) agenda, the USDA is pushing about $700 million into regenerative agriculture for 2026. This isn't "new" money—it's mostly reshuffled from old conservation programs like EQIP—but it shows where the priority shifted. They want soil health and "whole-farm planning" rather than just carbon offsets.
What’s Happening Right Now (January 2026)
As of today, we are staring down a partial government shutdown deadline of January 30, 2026. This is the fallout from the long-running battle over the FY2026 budget.
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Congress just passed a three-bill package that rejected some of the steepest cuts the President wanted—specifically for the National Science Foundation and the EPA—but the administration still has a ton of "discretion" because of how the continuing resolutions were written.
If you are waiting on a grant from the Department of Energy or the EPA, expect delays. The "One Big Beautiful Bill Act" (OBBBA) has replaced a lot of old environmental funding with money for "American Energy Dominance," which basically means more drilling and mining, less wind and solar.
Actionable Steps: How to Navigate the New System
If you need trump federal grants and loans to keep your project alive, you can't use your 2023 playbook. You have to adapt.
- Check Your NAICS Code: If you can reasonably classify your business as "manufacturing," do it. The fee waivers alone could save you tens of thousands of dollars.
- Audit Your Ownership: If you have even a 1% owner who isn't a citizen or LPR, you are likely ineligible for SBA funding right now. Fix the cap table before you apply.
- Scrub Your Proposals: This is the "hush-hush" advice going around research circles. Avoid "trigger words" like DEI, climate change, or environmental justice. Focus your language on "national interest," "economic resilience," and "efficiency."
- Use the Onshoring Portal: The SBA launched a new portal to connect small businesses with domestic suppliers. Using this can sometimes help you qualify for the specialized "Made in America" funding streams.
- Watch the January 30 Deadline: If the government shuts down again, the SBA loan queue will freeze. Get your applications in before the end of the month if you want a chance at funding before the spring.
The money is there, but the pipes are different. It's less about "saving the world" and much more about "building the factory." If you can pivot your pitch to match that reality, you'll have a much better shot at actually getting the funds.