Community Health Center Funding: Non-Federal Grant Opportunities for 2026
After a relatively quiet year for large federal health center funding announcements, many Community Health Centers (CHCs) are turning their attention to non-federal funding sources to support innovation, pilot new services, and respond to emerging community needs. In 2026, private foundations, professional associations, and state and local government agencies, along with other mission aligned organizations, are expected to continue offering targeted grant opportunities that complement - rather than replace - traditional federal funding.
Unlike federal grants, nonfederal opportunities often emphasize innovation, scalability, community partnerships, and measurable impact, providing CHCs with greater flexibility to test new approaches to care delivery, address health equity, and strengthen community based programs. While these grants may be smaller in dollar amount, they frequently offer targeted programmatic support that helps health centers strengthen or enhance existing services, seed new initiatives, and expand high impact activities aligned with community needs.
Understanding where to find these opportunities, how they differ from federal awards, and how to position your health center competitively can make a meaningful difference. With thoughtful planning and early preparation, CHCs can leverage nonfederal funding sources - including state and local grants - to diversify funding, demonstrate impact, and build momentum for future investment.
Context and Funding Landscape
Over the past year, Community Health Centers (CHCs) have faced tough challenges, including fewer federal grant options and ongoing financial stress. Many health centers have had to make do with current resources, which has made it hard to start new projects or meet emerging needs. Although HRSA is expected to launch several major grant programs in 2026, it remains important for CHCs to consider nonfederal funding sources alongside federal opportunities. State and local funding sources remain crucial for helping health centers grow, try out new strategies, and tackle needs unique to their regions.
Select NonFederal Grant Opportunities (National, State, and Regional)
National Opportunities
AMA Community Health Impact Lab Micro Grants
Funder: American Medical Association
Community Health Impact Lab micro grants | American Medical Association
Purpose: One year grants supporting innovative, physician led initiatives designed to improve community health outcomes, particularly for populations facing barriers to care.
Who should consider this opportunity: CHCs with pilot ready ideas, strong clinical leadership, and approaches that can be evaluated and replicated in other communities.
Due: 3/1/2026
Scale: $50,000 each for 20 awards
State Opportunities
Texas Incubator Program – Round 2
Funder: Texas Health and Human Services
Funding Opportunity: HHS0016898
Purpose: Project based funding to support existing Federally Qualified Health Centers (FQHCs) and FQHC Lookalikes in expanding services or improving access to care.
Who should consider this opportunity: Texas based FQHCs and FQHC Lookalikes seeking support for service expansion or access related projects.
Due: 3/1/2026. Awards are made on a rolling, first come basis through an open enrollment process, with applications accepted and funded until available program funds are fully committed.
Scale: Up to $650,000 per award.
Rebuild Illinois Capital Program
Funder: Illinois Department of Health and Capital Development Board
Funding Opportunity: CSFA# 511-00-3658
Community Health Center Construction Grants - Rebuild Illinois
Purpose: Project based funding aims to expand access to health care services by facilitating the construction or renovation of community-based health care facilities, particularly in underserved and rural areas.
Who should consider this opportunity: Illinois-based FQHCs and LALs.
Due: 3/31/2026.
Scale: Up to $3,000,000 per award. A total of $50,000,000 in funds is available to support projects statewide.
What NonFederal Grants Can Do for Your Health Center
While nonfederal grants may be smaller than large federal awards, their impact can be significant. Opportunities like the AMA Community Health Impact Lab MicroGrants allow CHCs to pilot new approaches, engage clinicians in leadership roles, and generate data that demonstrates results.
Beyond the direct funding, nonfederal grants - including those offered by state and local agencies - can help CHCs:
Test innovative care models or community based interventions
Build evidence for future public or private funding
Strengthen partnerships with hospitals, academic institutions, or community organizations
Increase organizational visibility among philanthropic and professional networks
Diversify funding sources and reduce reliance on any single stream
When used strategically, these grants can help health centers move promising ideas from concept to implementation.
Preparing for Success: Strategic Steps to Take Now
To compete effectively for nonfederal funding, CHCs should approach preparation a bit differently than they might for federal grants:
Clarify Your Value Proposition: Clearly articulate the problem you are addressing, why it matters, and how your approach is innovative or distinctive.
Emphasize Impact: Nonfederal funders want to see measurable outcomes, even for small or pilot scale projects.
Highlight Leadership and Partnerships: Strong clinical or community leadership and meaningful partnerships often matter as much as technical compliance.
Stay Flexible: Application timelines may be shorter than federal grants, so having concept ideas and data ready is critical.
Track Opportunities Regularly: Many private funders do not follow predictable annual cycles.
How Community Link Consulting Can Help
Community Link Consulting supports Community Health Centers in identifying and pursuing both federal and non-federal grant opportunities. Our services include:
Grant prospecting and opportunity identification
Funding strategy development and diversification planning
Proposal development, writing, and technical review
Data analysis and community needs assessment
Project planning and implementation support
For non-federal grants, we help health centers refine their narrative, clarify expected impact, and align projects with funder priorities. This includes supporting applications with shorter timelines or less formal processes, where a clear value proposition and strong community alignment are especially important.
Looking Ahead
As funding landscapes continue to evolve, nonfederal grants will remain an important tool for CHCs seeking to innovate, diversify revenue, and respond to community needs. With early preparation and a strategic approach, health centers can make the most of these opportunities in 2026 and beyond.
The opportunities highlighted in this post represent a select sample of nonfederal funding mechanisms that may be of interest to Community Health Centers. They are intended to be illustrative rather than exhaustive, and health centers are encouraged to explore additional state, regional, and local opportunities as part of a broader funding diversification strategy.
Contact Us:
Phone: 509-226-1393
Email: info@communitylinkconsulting.com
About the Author
Susan Robertson, Senior Consultant
Community Link Consulting
Susan has over 25 years of nonprofit experience, with the past decade dedicated to community health center grant writing and management. As a former Chief Strategy Officer and Interim CEO of a Colorado-based Community Health Center, she has successfully secured and managed millions in federal grant funding. Susan's expertise in HRSA grant programs, needs assessment, and program development makes her an invaluable resource for health centers navigating complex federal funding opportunities. She holds a Master of Public Health degree from the University of North Carolina at Chapel Hill.
Sources & Additional Resources
AMA Community Health Impact Lab: Community Health Impact Lab micro grants | American Medical Association
Texas HHS FQHC Incubator Program: HHS0016898 | Resources
Illinois Rebuild Capital Program: Euna Grants - CDB - Community Health Center Construction Grants - Rebuild Illinois
HRSA Find a Grant: https://www.hrsa.gov/grants/find-grants
