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Intergovernmental grants are an important revenue and fiscal instrument for local governments, comprising almost one-third of revenues. Many of these grants require local governments to compete for federal or state funds. The level of competitiveness varies among local governments depending on several factors, with local capacity being the most important determinant.
This article empirically evaluates whether intermediaries/support organizations and other third-parties can offset for local governments’ capacity constraints in securing intergovernmental grants by providing technical assistance in the form of trainings and direct assistance with writing and submitting grant proposals. As a case study, this paper uses a difference-in-difference technique to study the impact of Grant Assistance Program (GAP), initiated by the Institute of Public Administration at the University of Delaware, in helping secure intergovernmental grants for municipalities in the State of Delaware. The paper will review the grants won by municipalities in Delaware over the last ten years and study the award of FEMA-administered BRIC grants for the year 2023, using administrative data to conceptualize and understand any differences in winning grants associated with GAP’s capacity building initiative. The study will help understand the role of third-parties and intermediaries in assisting in securing competitive intergovernmental grants for local governments, which will also plug a significant research gap in the area of intergovernmental fiscal relations.