Homeland Security Grant Program (HSGP)

HSGP is a federal grant program from Department of Homeland Security (DHS) / Federal Emergency Management Agency (FEMA) administered through the North Carolina Dept. of Public Safety (NCDPS) / North Carolina Emergency Management (NCEM) in the state of NC.

Only eligible local government entities (and tribal governments) with projects approved through their corresponding Domestic Preparedness Region (DPR) in North Carolina may apply for HSGP funding; however, applications for FY25 HSGP funding are closed.

Eligible local government entities (and tribal governments) should contact your local DPR (or County Emergency Management office) for information on how to apply for FY26 HSGP funding, if/when any FY26 HSGP funding is available. Applications will never be accepted from any local government entities (or tribal governments) for any projects that are not approved through their corresponding DPR.

Eligible state government agencies in North Carolina may also apply for HSGP funding; however, funding for state projects is very limited and applications for FY25 HSGP funding are closed. Eligible state agencies should contact the Homeland Security Branch at NCEM for information on how to apply for FY26 HSGP funding, if/when any FY26 HSGP funding is available.

HSGP in NC currently includes two components, the State Homeland Security Program (SHSP) and the Urban Area Security Initiative (UASI) for the Charlotte area. NC does not receive Operation Stonegarden funding (OPSG) for border security. The majority of OPSG funding is for states bordering Mexico & Canada, and NC has never been allocated OPSG funding by DHS/FEMA.

DHS/FEMA published the final FY25 HSGP NOFO on 8/2/25. 

HSGP strengthens the nation's capacity to prevent, prepare for, protect against, and respond to acts of terrorism and other catastrophic events 

The objective of the HSGP is to fund state, local, tribal, and territorial (SLTT) efforts to prevent terrorism and prepare the Nation for threats and hazards that pose the greatest risk to the security of the United States.
 

There are two funding sources appropriated for HSGP in NC:

State Homeland Security Program (SHSP): 

SHSP assists (SLTT) efforts to build, sustain, and deliver the capabilities necessary to prevent, prepare for, protect against, and respond to acts of terrorism. 
SHSP supports building and sustaining capabilities at the state and local levels through planning, organizational activities, equipment, training, and exercises (POETE) and helps states implement the strategic goals and objectives included in state homeland security strategies.  SHSP provides funding to all 56 states & territories, including NC, based on a combination of formula, risk, and effectiveness.  

SHSP funding is intended to help SLTT agencies address capability gaps identified through the Threat and Hazard Identification and Risk Assessment (THIRA) and Stakeholder Preparedness Review (SPR) process, as well as prioritize resources toward high-impact security focus areas, known as National Priority Areas (NPAs).

FY25 HSGP-SHSP total federal funding target allocation for NC: $4,631,809.
 

Urban Area Security Initiative (UASI) 

UASI assists high-threat, high-density urban area efforts to build, sustain, and deliver the capabilities necessary to prevent, prepare for, protect against, and respond to acts of terrorism.  UASI enables urban areas to address identified security gaps, increase interagency coordination, and strengthen critical infrastructure protection to reduce vulnerabilities in locations facing heightened risks.

UASI funds projects supporting certain designated high-risk urban areas based on an analysis of the relative risk of terrorism faced by the 100 most populous metropolitan statistical areas (MSA) in the United States.  The Charlotte Area is the only designated UASI in the state of NC. It is comprised of Mecklenburg County and all counties bordering Mecklenburg County, including two SC counties.

The following counties are considered part of the Charlotte Area UASI in NC for HSGP (see map of Charlotte Area UASI for HSGP):

CabarrusLincoln
CatawbaMecklenburg
GastonStanly
IredellUnion
York (SC)Lancaster (SC

FY25 HSGP-UASI total federal funding target allocation for Charlotte Area NC: $4,285,035.
 

Eligibility

The State Administrative Agency (SAA) in each state & territory is the only entity eligible to submit HSGP applications to DHS/FEMA, including those applications submitted on behalf of UASI.  Tribal governments may not apply directly for HSGP funding; however, funding may be available to tribes through the SAA. NCDPS/NCEM is the designated SAA for the state of NC. 

National Priorities 
 

For FY 2025, HSGP includes the following five National Priority Areas (NPAs): 
1.    Enhancing protection of soft targets/crowded places – no minimum spend requirement.
2.    Supporting Homeland Security Task Forces and Fusion Centers – no minimum spend requirement.
3.    Enhancing and integrating cybersecurity resiliency – no minimum spend requirement.
4.    Enhancing election security – 3% minimum spend of total SHSP and UASI funds requirement.
5.    Supporting Border Crisis Response and Enforcement – 10% minimum spend of total SHSP and UASI funds.

States, including NC, must spend a minimum of 30% of their SHSP and UASI awards across the five NPAs but have flexibility on how that funding is allocated. Enhancing Election Security has a minimum 3% spend requirement, Supporting Border Crisis Response and Enforcement has a minimum 10% spend requirement, but the other 17% can be spent across any of the five NPAs as noted above.  Additionally, with this increased flexibility, activities that support more than one NPA may be included under only one NPA Investment Justification (IJ) but still count towards the 30% minimum spend without having to be broken out into separate projects or activities in more than one IJ.  Additional information about these priority areas and how they relate to achieving anti-terrorism capabilities is included in the FY25 HSGP NOFO.

See DHS/FEMA FAQ #13 for examples of projects for each NPA.

Law Enforcement Terrorism Prevention Activities (LETPA) Minimum Allocation

The minimum percentage that SHSP and UASI recipients must allocate toward (LETPA) is 35% in FY 2025.  Investments that support LETPA can also support an NPA (e.g., an investment can be counted as supporting both the Soft Targets/Crowded Places and LETPA minimum allocation requirements, if applicable).

Additional Guidance: Information Bulletin (IB) 485 includes the most up-to-date information on project selection considerations and allowable activities for LETPA investments and compliments IB 473. Both IBs are applicable to the FY 2025 HSGP NOFO. For comprehensive LETPA requirements, refer to the Law Enforcement Terrorism Prevention Activities Resource Guide.

Allocations and Required Spending on Priorities (IJs)

States & territories are required to submit IJs addressing the NPA requirements listed above for HSGP-SHSP, and separate IJs for HSGP-UASI addressing the same for each designated UASI area within that state or territory.  

States & territories must allocate a total of at least 30% of their SHSP and UASI award funds across the five NPAs listed above (Soft Targets/Crowded Places, Supporting Homeland Security Task Forces and fusion centers, Enhancing and integrating cybersecurity resiliency, Enhancing election security, and Supporting border crisis response and enforcement).  Enhancing election security has a minimum 3% spend requirement, and supporting border crisis response and enforcement has a minimum 10% spend, but the other 17% can spent across any of the five NPAs as noted above.  All projects related to the minimum spends for the NPAs must be included in the IJs for SHSP and UASI. 

States & territories and UASI areas must allocate the remaining 70% of their funding to addressing capability gaps (e.g., building/sustaining capability and/or closing capability gaps) identified through their Threat and Hazard Identification and Risk Assessment (THIRA) and Stakeholder Preparedness Review (SPR) process.  See 2025–2028 North Carolina State Homeland Security Strategy.
 

Fusion Centers

While there is no minimum spend requirement for the Supporting Homeland Security Task Forces and fusion centers NPA, states & territories are still required to include at least one dedicated fusion center project under this NPA.

Cost Share or Match

There is no cost share or match requirement for FY25 HSGP, neither SHSP nor UASI, for states & territories or subrecipients.

Pass-Through Requirements

Each state (and territory) must pass-through at least 80% of the funds awarded under SHSP and UASI to local or tribal units of government within 45 calendar days of receipt of the funds.  A max. of 20% of the funds awarded under SHSP and UASI can be retained by the state for state projects, including up to 5% for Management and Administration Costs.

Management and Administration Costs (M&A)

M&A costs are allowed. States & territories may use a maximum of up to 5% of HSGP funds awarded for their M&A, and any funds retained are to be used solely for M&A purposes associated with the HSGP award. Subrecipients may also use a maximum of up to 5% of the funding passed through by the state solely for M&A purposes associated with the HSGP award. M&A activities must directly relate to the management and administration of HSGP funds, such as financial management and monitoring. M&A expenses must be based on actual expenses or known contractual costs. M&A requests that are simple percentages of the award, without supporting justification, will not be allowed, or considered for reimbursement.

States & territories or subrecipients may apply or credit M&A funding toward the recipient’s requirement to allocate funding toward the NPAs. For example, if a state spends $5,000 to manage or administer its funding dedicated toward its soft targets/crowded places investment, the state may credit that funding toward its requirement to allocate at least 30% of its award to the six NPAs.
 

Allowable Costs

The FY25 HSGP NOFO contains an Allowable Cost Matrix for SHSP, UASI, and OPSG (non-exhaustive) listing examples of allowable cost activities that fall under each of the authorized cost categories for HSGP: planning, organization, equipment, training & exercises (POETE). Refer to this matrix when developing projects for HSGP funding to determine allowability of costs.

Controlled Equipment

The federal government provides equipment to state, local, and tribal law enforcement agencies (LEAs) through federal grants.  The equipment acquired by LEAs through these programs includes administrative equipment, such as office furniture and computers. Some federal grant programs also may include military and military-styled equipment, firearms, and tactical vehicles provided by the federal government, including property covered under 22 C.F.R. Part 121 and 15 C.F.R. Part 774 (collectively, "controlled equipment").

However, not all equipment that is considered controlled equipment is allowable under HSGP. Grant funds under this program may not be used for the purchase of equipment not approved by DHS/FEMA. 

FEMA released Information Bulletin (IB) 530 on 7/28/25 providing updated guidance to recipients & subrecipients of FEMA non-disaster preparedness grants regarding the policy on prohibited & controlled equipment.

The new IB 530 rescinds the previous EO 14074.  Since FEMA Policy 207-22-002, “Prohibited or Controlled Equipment Under FEMA Awards” was issued to comply with EO 14074, FEMA Policy #207-22-0002 is also rescinded.

Under the new IB 530, the following items are not allowable under HSGP or any other DHS/FEMA non-disaster preparedness grant:

  • Weapons of any kind (including firearms; firearm silencers as defined in 18 U.S.C. § 921(a)(24); grenades and grenade launchers; bayonets, etc.); ammunition; and weaponized aircraft, vessels, and vehicles of any kind remain unallowable under any FEMA preparedness grant.
  • Tracked armored vehicles (AEL #12VE-00-MISS - Vehicle, Specialized Mission) and urban camouflage uniform items (AEL #01LE-02-BDUS - Specialized Clothing, NFPA 1975 or NFPA 2112) remain unallowable under any FEMA preparedness grant.
  • Explosive material (AEL #02EX-00-EXEN - Equipment, Explosive Entry) remains unallowable and must be purchased separately.

  • Purchase of fixed or rotary wing aircraft (AEL #18AC-00-ACFT - Aircraft, CBRNE) will continue to require prior approval from FEMA, and recipients should contact their assigned FEMA Preparedness Officer for further guidance.

    Recipients must provide a detailed justification to acquire equipment in this category and receive prior approval before obligating funding. A detailed justification must address the following key areas:

    1. The need for the aircraft and how the requested platform best meets that need as compared to other options;
    2. How the requested aircraft fits into the State/Urban Area's integrated operational plans;
    3. Types of terrorism incident response and prevention equipment with which the requested aircraft will be outfitted, if purchased using Homeland Security Grant Program funds;
    4. How the aircraft will be used operationally, and which response assets will be deployed using the requested aircraft;
    5. How the aircraft will be utilized on a regular, non-emergency basis; and
    6. A copy of the requesting agency’s standard operating policy/procedure for the aircraft. 
       

    Note: Licensing, registration fees, insurance, and all ongoing operational expenses will continue to be the responsibility of the grantee or the local units of government and are not allowable under the grant.

  • Small Unmanned Aircraft Systems (AEL #03OE-07-SUAS - System, Small Unmanned Aircraft) are considered aircraft and are required to meet the requirements in Section III, 4, d, above consistent with EO 14035 "Restoring American Airspace Sovereignty,” dated June 6, 2025.
  • Equipment intended to be used for riot suppression including riot batons, riot helmets, and riot shields remain unallowable under any FEMA preparedness grant program.

All other items (not listed above) that were previously “controlled” are now allowable without the need for any further review and determination by FEMA, provided that acquisition of the items is consistent with the terms of the award, including the applicable NOFO and/or FEMA Preparedness Grants Manual.

FY25 HSGP State Priorities & Capabilities

The State Homeland Security Advisor and Deputy Homeland Security Advisor’s priorities and guidance for the development of regional and statewide FY25 Homeland Security Grant Program (HSGP) projects are:

  • Proposed scopes of work should build or sustain identified projects.
  • Proposed projects should reduce gaps for specific capabilities identified through the current update to the State Threat Hazard Identification Risk Assessment (THIRA) an Stakeholder Preparedness Report (SPR) process or as identified through local/regional THIRAs.
  • Proposed projects, when feasible, should align with the National Priorities introduced in the FY2025 HSGP guidance:
    • Enhancing protection of soft targets/crowded places.
    • Supporting Homeland Security Task Forces and Fusion Centers.
    • Enhancing and integrating cybersecurity resiliency.
    • Enhancing election security.
    • Supporting Border Crisis Response and Enforcement.

For more information: HSGP Extended Capability Priorities Guidance.
 

Other requirements from DHS/FEMA:

  • Subrecipients may be required to submit short bios and resumes. This submission should include the type of entity, organizational leadership, and list of board members (if applicable) along with the names and business addresses of the individuals. Sensitive personally identifiable information (PII) such as personal addresses, phone numbers, etc. should not be included with this information.  If required, subrecipients will upload this information with their grant in Salesforce.
  • Subrecipients should not have foreign nationals or noncitizens included. If a subrecipient has foreign nationals, they must be properly vetted and must adhere to all government statutes, policies, and procedures.
  • If awarded funds, subrecipients may be required to provide information on whether their work or mission involves supporting aliens [DHS/FEMA uses the term “aliens” instead of immigrants] - regardless of whether FEMA funds support such activities - and whether any FEMA funding was used for an activity involving support to aliens. Subrecipients may also be required to disclose if they have any “Diversity, Equity & Inclusion” (DEI) practices.
     

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