Keith Edwards is a trainer and facilitator with more than 30 years of nonprofit experience, including senior level project implementation and management, risk assessment, compliance, internal audits, and award administration in all aspects of operations, support services, and standard operating procedures.
In short, he’s an expert at award administration and all aspects of interpreting the complexities of donor rules and regulations.
Here’s a summary of the essential insights Keith shared in a recent webinar on how to navigate the new requirements of US government funding in light of the massive 2025 changes.
Two numbers that tell the story
Keith opened with two striking figures: $1.7 billion and $112 million.
The first was USAID’s administrative prior budget for program oversight. The second? That’s the amount currently allocated for administration across all Department of State’s foreign assistance, including merged USAID and DoS programs, and “rebuilding” the department to address the new priorities.
This dramatic reduction in oversight means one critical thing. “With substantially reduced oversight and funding, the responsibility for ensuring compliance falls squarely on your organization,” Keith explained. “Knowledge by itself is not enough. You need to apply that knowledge and take action to ensure your organization is in compliance, that you’re tracking your performance, that you’re reporting beyond what is required.”
What’s changed: more than the funding
With USAID’s funding cuts, the regulatory framework has simplified in some ways. Organizations now primarily need to focus on 2 CFR 200, the standard set of federal regulations. And staying current is crucial. For example, recent updates increased the micro-purchase threshold from $10,000 to $15,000 and the simplified acquisition threshold from $250,000 to $350,000.
(If you’re managing older awards from before January 2025, remember that you still have to comply with their original terms and conditions, including USAID-specific requirements like 22 CFR 228 and standard provisions.)
Connect the dots to the new priorities
The current administration has stated its priorities: making America safer, stronger, and more prosperous. Every program you implement with US government funding needs to demonstrate why:
- It should be considered for funding
- it should continue to receive funding
- how it meets the requirements
- and how all of that lines up to those goals
Here’s a practical example: “Your health program needs to show how you’re making the population safer by preventing illness from spreading globally. If that illness doesn’t spread to the US, then that means Americans can keep going to work, contributing to the country’s prosperity.”
This means your reporting needs to capture more than just program outcomes. You’ll need to document the connection from your work to those three priorities.
Be boastful, not bashful
Keith was emphatic about this:
Track every number. Track your spending. Look at how that spending applies to every action you’re doing. Look at the cost benefit. Measure everything that can be measured. This data serves multiple purposes: it demonstrates accountability and compliance, helps you improve operations, and provides the evidence you need when reporting to funders.
You still need to do the “feel good” kind of reporting but attach numbers to it.
“The days of NGOs being bashful about their accomplishments are over,” Keith noted. “We’re in an era of being boastful. Gather the numbers, analyze them, report them, and when you can boast about them, do it.”
Don’t wait; strengthen your processes now
Organizations don’t need to wait to see what happens next regarding funding, rules and regs, priorities. Start strengthening your compliance right now. Review your operating policies and procedures for finance and accounting, fraud management, internal controls, procurement, subaward management and travel. Make sure these align with 2 CFR 200’s requirements.
- Use compliance checklists to track what needs to be done and make sure you’re consistently following your procedures. (Humentum offers tools like the US Government Award Management and Compliance Checklist.)
- Build sustainability into every program from the start.
What we learned from last year is that funding does come to an end, sometimes suddenly. Every program should include how it will continue after US funding ends.
As Keith closed the webinar, he reminded participants: “Let’s bring the light back into 2026. We will own our programs, and we will do it in a way that is sustainable and won’t be as affected by funding cuts as we were last year.”
Organizations that invest in understanding regulations, strengthen their compliance systems, and document their impact will be better positioned for current and future funding opportunities. The power of collective knowledge and shared resources has never been more important.
Hands-on learning to take next steps
Humentum offers a comprehensive three-day course of six webinars on navigating US government funding requirements. Each session includes practical tools and resources to help your organization stay compliant.
For more information on this course and other training opportunities, visit Humentum’s website or explore the Solutions Hub membership platform for curated resources and peer-to-peer collaboration.