Recurring vs. Temporary Funds: How Agencies Should Adapt

By: Loreana González-Lazzarini

In 2025, Puerto Rico’s public agencies are facing a turning point. With federal policy shifting under President Trump’s second term toward recurring programs and tighter budgets, it’s time to stop treating federal funds as band-aids for emergencies—and start building long-term strategies around the programs that stay.

To build sustainable impact, agencies must understand—and strategically respond to—the critical difference between recurring and temporary federal funds.

What’s the Difference?

Recurring Federal Funds

These are distributed annually through formula-based programs. Funding is tied to population, need, or other predefined criteria—providing long-term stability if managed well.

• Advantages: Predictable, renewable, tied to long-term programs.

• Risks: Require strict compliance, long-term planning, and proactive management.

• Examples: Head Start, IDEA (Special Education), Section 8, Community Development Block Grants (CDBG).

Temporary Federal Funds

These are time-limited funds provided in response to specific events, emergencies, or special initiatives. They are often authorized through one-time legislation and must be used within set deadlines.

• Advantages: Support urgent needs, recovery efforts, and short-term impact.

• Risks: Non-recurring, deadline-driven, and may require rapid mobilization.

• Examples: FEMA Public Assistance Program, ARPA State and Local Fiscal Recovery Funds, CDBG-DR.

Why It Matters Now

Puerto Rico has leaned heavily on temporary relief—hurricanes, COVID, economic downturns. But these aren’t sustainable foundations. Now, with Washington emphasizing self-reliance and fiscal discipline, agencies need to show they’re ready to manage programs—not just grants. This means investing in internal teams, managing risk, and designing programs that last. Recurring funds can drive real transformation—but only if we stop managing in crisis mode.

With federal policy increasingly favoring self-sufficiency and fiscal discipline, agencies are expected to demonstrate:

• Internal capacity

• Programmatic continuity

• Long-term compliance strategies

Recurring funds—properly managed—offer an opportunity for transformation. But that requires shifting from reactive grant management to proactive federal program strategy.

Strategic Shifts for Public Agencies

1. Stop chasing random grants.

   If it doesn’t align with your mission or capacity, don’t apply. Focus on what builds your agency—not what pads your win rate.

2. Build your team, not just your budget.

   Recurring funds require structure: SOPs, fiscal controls, internal collaboration. Grant writers alone aren’t enough.

3. Integrate grants into leadership.

   Grants shouldn’t sit in a silo. Your grants office should influence strategy, operations, and outcomes.

4. Plan beyond the fiscal year.

   Recurring funding works best when you tie it to real outcomes. Track what matters: service delivery, public benefit, continuity.

How Astra Supports This Transition

Puerto Rico’s public agencies have a window of opportunity—if they rethink how they approach federal funding. At Astra, we’re ready to help lead that shift. The time to build sustainable programs is now.

Waiting comes at a cost:

• Loss of funds due to non-compliance

• Audit findings from lack of internal capacity

• Missed opportunities for long-term impact

Explore how we support public sector clients (internal) through training, strategy development, and fiscal modernization.

Download as PDF:  Recurring vs. Temporary Funds: How Agencies Should Adapt

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Mind the Gap: Fixing Puerto Rico’s Lack of Recurring Federal Support for Older Adults

Puerto Rico’s aging population is growing fast—but the island lacks access to the recurring federal funds that support older adults in most U.S. states.

Despite the need, Puerto Rico doesn’t receive formula-based funding for key elder care programs like:

• Older Americans Act (Title III-B, C, D, E)

• Money Follows the Person

• Medicaid HCBS Enhancements

• SHIP (State Health Insurance Assistance)

• SCSEP (Senior employment)

  
  

This funding gap has real consequences: fewer services, wider health disparities, and limited support for caregivers.

The time to act is now. The current administration has named this a priority—and with the right strategy, Puerto Rico can align local capacity to unlock these funds.

At Astra, we help public institutions evaluate eligibility, build strategies, and prepare to access the recurring resources this demographic shift demands.

Learn More or Start a Conversation

Building resilience through recurring funding starts with the right strategy.

👉 Visit www.astrapr.com to explore our advisory services, client stories, and upcoming training sessions.

📩 Have a question? Contact us to speak with our federal funding experts.

About the Author: 

Loreana González-Lazzarini, CPA | Member & Senior Managing Director

Loreana  brings over 19 years of expertise in financial auditing, disaster recovery, and grants compliance. Her background includes leadership roles at Big-4 firms and advisory positions in large-scale recovery efforts. Learn more about our team.