Nonprofit Security Grant Program: Summary and Potential Issues for Congress

Nonprofit Security Grant Program: Summary and Potential Issues for Congress

INSIGHTi

Nonprofit Security Grant Program: Summary
and Potential Issues for Congress
Updated January 26, 2023
Introduction
On November 30, 2022, the Department of Homeland Security (DHS) issued a National Terrorism
Advisory System bulletin warning of domestic and international terrorism threats. Specifically, the
bulletin identified
Domestic actors and foreign terrorist organizations continue to maintain a visible presence online in
attempts to motivate supporters to conduct attacks in the Homeland. In the coming months, threat
actors could exploit several upcoming events to justify or commit acts of violence, including
certifications related to the midterm elections, the holiday season and associated large gatherings,
the marking of two years since the breach of the U.S. Capitol on January 6, 2021, and potential
sociopolitical developments connected to ideological beliefs or personal hostility. Targets of
potential violence include public gatherings, faith-based institutions, the LGBTQI+ community,
schools, racial and religious minorities, government facilities and personnel, U.S. critical
infrastructure, 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 recent terrorist attacks, such as the mass shooting in Los Angeles, CA. This is part
of a continued policy debate on homeland security and preparedness for terrorism.
NSGP Funding
Since 1996, Congress has provided grant funding to states and localities for domestic preparedness and
security. These grants primarily focus on countering 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 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 preparing the nation for homeland security
incidents and crises. One of the eight preparedness grant programs that DHS administers is the Nonprofit
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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 2020, Congress 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 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;
 FY2021—$180 million;
 FY2022—$250 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 do not 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
Potential NSGP policy issues and challenges include the transparency of NSGP awards, state and UASI
city prioritization of NSGP applications, NSGP award effectiveness.

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Transparency
Currently, there is no publicly available information on which nonprofit organizations are awarded NSGP
funding. DHS stated that it does not announce specific NSGP awards due to the sensitivity and
classification of that information. SAAs respond similarly when queried about NSGP. The only detailed
information provided to the public about the NSGP is the notice of funding opportunity (NOFO). These
annual NOFOs 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
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
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IN11861 · VERSION 3 · UPDATED