INSIGHTi
Nonprofit Security Grant Program: Summary
and Potential Issues for Congress
February 18, 2022
Introduction
On February 7, 2022, the Department of Homeland Security (DHS) issued a National Terrorism Advisory
System bulletin warning of credible domestic terrorism threats. Specifically, the bulletin identified
“continued calls for violence directed at U.S. critical infrastructure; soft targets including mass
gatherings; faith-based institutions, such as churches, synagogues, and mosques; institutions of higher
education; racial and religious minorities; government facilities and personnel, including law enforcement
and the military; the media; and perceived ideological opponents.” This comes at a time of increased
congressional interest in the security of religious and other nonprofit institutions following the recent
attack on a synagogue in Dallas, Texas. This interest is part of a continued policy debate on homeland
security and preparedness for domestic terrorism.
NSGP Funding
Since 1996, Congress has provided grant funding to states and localities for domestic preparedness and
security. These grants primarily focus on preparing for and responding to terrorist attacks. Congress
established the first preparedness grant program—the Nunn-Lugar-Domenici Preparedness Program
(NLDPP)—in Title XIV of the National Defense Authorization Act for1996. The NLDPP provided
funding to major U.S. cities to prepare for and respond to weapons of mass destruction (including
bioterrorism) attacks.
DHS currently administers eight preparedness grant programs that assist states and localities in preparing
for and responding to terrorist attacks specifically, as well as generally preparing the nation for homeland
security incidents and crises. One of the eight preparedness grant programs that DHS administers is the
Nonprofit Security Grant Program (NSGP). The NSGP provides funding to nonprofit organizations that
are at a high risk of terrorist attack to support preparedness activities such as target hardening and other
physical security enhancements.
In January 2020, Congress formally established the NSGP with the enactment of P.L. 116-108. However,
congressional appropriators first provided funding to NSGP in FY2009 ($15 million). It was funded again
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in FY2010 ($19 million), FY2013 ($10 million), and FY2016 ($20 million). Congress has since
appropriated funding for NSGP annually:
FY2017—$25 million;
FY2018—$60 million;
FY2019—$60 million;
FY2020—$90 million; and
FY2021—$180 million.
Congress funds the NSGP through DHS’s Homeland Security Grant Program (HSGP), specifically
through two HSGP subgrants: the State Homeland Security Grant Program (SHSGP) and the Urban Area
Security Initiative (UASI). NSGP funding, through SHSGP, is allocated to nonprofit organizations within
the state but not in high-risk and high-threat UASI cities. NSGP funding, through UASI, is allocated to
nonprofit organizations only within high-risk and high-threat UASI cities.
NSGP Applications
Individual nonprofit organizations are not authorized to apply directly for grant funding. State and
territorial governments are responsible for prioritizing their homeland security needs and capabilities,
identifying at-risk targets, and addressing those through annual HSGP applications. State Administrative
Agencies (SAA) in each state are the only entities eligible to apply for and submit applications for the
HSGP and its component programs, including the NSGP. Typically, state and territorial governments
solicit applications from nonprofit organizations and determine which ones to include in their annual
HSGP applications to DHS.
Authorized Uses of NSGP Funding
NSGP-eligible nonprofits are organizations that are described in section 501(c)(3) of title 26 of the U.S.
Code and exempt from tax under section 501(a) of such title; and determined to be at risk of a terrorist
attack by DHS with input from each SAA. 6 U.S.C. §609a states NSGP recipients may use funding for
any of the following purposes:
“target hardening activities, including physical security enhancement equipment and
inspection and screening systems”;
“fees for security training relating to physical security and cybersecurity, target
hardening, terrorism awareness, and employee awareness”; and
“any other appropriate activity, including cybersecurity resilience activities, as
determined by the [DHS] Administrator.”
Potential NSGP Issues
There are several potential NSGP policy issues and challenges specifically related to the dearth of
publicly available information, including the transparency of NSGP awards, state and UASI city
prioritization of NSGP applications, and measurement of NSGP award effectiveness.
Transparency
Currently, there is no publicly available information on which nonprofit organizations are awarded NSGP
funding. DHS has consistently stated that it does not announce specific NSGP awards due to the
sensitivity and classification of that information. SAAs respond similarly when queried about DHS
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preparedness grants, generally, and NSGP, specifically. The only detailed information provided to the
public about the NSGP is the notice of funding opportunity (NOFO). These annual NOFOs only provide
the maximum amounts nonprofit organizations are eligible to apply for (through the SAA) within each
state and UASI city. Once the annual grant award cycle begins, Congress and other policy stakeholders
are unable to determine which nonprofits are receiving NSGP funding. It is difficult for Congress to
determine if NSGP awards are being made equitably if Congress is unable to know which nonprofits
receive grant funding.
Prioritization
Another issue associated with absence of public NSGP information is the way SAAs determine and
prioritize NSGP applications from nonprofit institutions. As stated above, DHS does not determine which
nonprofits receive grant funding. Instead, individual state and territorial SAAs, with their own priorities
and internal risk assessment processes, decide which NSGP applications are prioritized before others. As
with the issue of transparency, it is difficult to address the issue of the potential inequitable prioritization
of NSGP awards within a state if there is no federal oversight of each state’s NSGP application process.
Measuring NSGP Effectiveness
The lack of publicly available information also may hinder Congress’s timely ability to conduct NSGP
oversight and confirm the effectiveness of NSGP awards. Currently, DHS is the only federal entity with
knowledge of approved NSGP projects and the only federal entity positioned to evaluate their
effectiveness. Generally, DHS is tasked with administering and auditing all preparedness grant
expenditures and has, upon request, provided information to Congress. The effectiveness of DHS
preparedness grants has been an ongoing issue since their establishment, and is applicable to NSGP.
Author Information
Shawn Reese
Analyst in Emergency Management and Homeland
Security Policy
Disclaimer
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