What Can Churches Spend NSGP Grant Money On in 2026? Complete Eligible Expenses Guide

One of the most common reasons NSGP applications are denied or partially defunded is a budget that includes ineligible expenses. Grant reviewers are trained to flag non-compliant line items — and in many states, a single ineligible item creates enough doubt to lower your score or trigger a formal deficiency. In the worst cases, it disqualifies the entire application.

This guide gives you a definitive, category-by-category breakdown of what the NSGP will and will not fund in 2026 — with real examples, edge cases, and practical guidance for building a compliant budget.

1. Why Eligible Expenses Are Critical to Your Application

The NSGP is not a discretionary gift — it is a federal grant program with strict rules about how every dollar can be spent. These rules come from three sources: the federal program guidance (NOFO), the Uniform Guidance for federal awards (2 CFR Part 200), and your state SAA's additional requirements.

When your SAA reviews your application, one of the first things they check is whether your budget is compliant. An application with a strong Investment Justification and a non-compliant budget will be scored down or disqualified. This is mechanical — reviewers do not give partial credit for a mostly-good budget.

The good news: the list of eligible expenses is broad enough to fund a comprehensive security upgrade for most houses of worship. You do not need to find workarounds — you just need to know what the rules are.

2. What Is Allowed: Full Category Breakdown

Physical Security Equipment

This is the largest and most common category. Eligible equipment includes:

• Security cameras (IP, CCTV, PTZ, thermal imaging)
• Digital video recorders (DVR) and network video recorders (NVR)
• Video management software and remote monitoring subscriptions
• Exterior and interior security lighting
• Fencing, gates, vehicle barriers, and bollards
• Reinforced doors and frames
• Window film and blast-resistant glazing
• Panic buttons and duress alarms
• Metal detectors (walk-through and handheld wands)
• X-ray screening machines (for larger facilities)
• Safe rooms and hardened shelters
• Emergency communication systems

Access Control Systems

• Electronic keycard and fob entry systems
• Biometric access control (fingerprint, facial recognition)
• Intercom and video doorbell systems
• Visitor management and check-in systems
• Electronic door locks and automatic locking systems
• Turnstiles and access gates

Security Planning and Assessment

• Professional security vulnerability assessments (SVA)
• Threat and risk assessments conducted by certified professionals
• Emergency operations plan development
• Site security surveys and architectural reviews
• Mass notification system setup and planning

Training

• Active shooter and run-hide-fight training
• CPR and AED certification for security volunteers
• Trauma-informed first response training
• Security guard certification and professional development
• De-escalation and conflict resolution training
• Tabletop exercises and emergency drills
• Workplace violence prevention training

Security Personnel

Personnel costs are eligible but subject to a cap (see Section 4). Eligible personnel costs include:

• Security guard wages and salaries
• Benefits and payroll taxes for eligible security staff
• Costs for hiring through a licensed security firm
• Background checks for security volunteers and staff

Cybersecurity

Added in recent program years — see Section 5 for full details.

3. What Is Not Allowed

The following categories are explicitly prohibited under NSGP guidelines. Do not include these in your application budget:

• Weapons, firearms, and ammunition. This is a hard prohibition. No exceptions. Tasers, batons, and other offensive equipment are also excluded.
• Non-security staff salaries. Pastors, administrative staff, bookkeepers, custodians, and program staff are not covered — even partially.
• Ministry and religious activities. Worship services, mission trips, religious education, Bibles, ministry supplies. Grant funds cannot support the religious function of your organization.
• General building renovations. Aesthetic improvements, painting, roof replacement, flooring, HVAC — unless directly and exclusively related to a security enhancement (e.g., reinforcing a wall specifically for an access control installation).
• Vehicles. Church vans, buses, passenger vehicles. Security-dedicated vehicles are a gray area — see Section 6.
• Food, hospitality, and events. Meals, refreshments, event costs, venue rentals.
• Fundraising activities. Any costs associated with your organization's fundraising efforts.
• Lobbying. Any costs for political lobbying or advocacy.
• Fines and penalties. Any legal fines, penalties, or settlement costs.
• Entertainment. Any entertainment costs for staff or congregation.

4. The Personnel Cost Cap Explained

This is one of the most frequently misunderstood aspects of NSGP budgeting. Here is how it works in practice:

If you want to fund a full-time security guard, plan your budget to ensure at least 50% of the award goes toward physical security enhancements. This is actually a helpful constraint — it ensures every NSGP award produces both a lasting physical security improvement and an operational component.

Personnel costs must be documented with a written job description, time tracking, and payroll records. Hired-through-contractor security costs are handled the same way — the 50% cap applies to all personnel-related security spending regardless of whether they are on your payroll or a contractor's.

5. Cybersecurity: The New Eligible Category

In recent NSGP program years, FEMA added cybersecurity as an eligible expense category. This reflects growing recognition that houses of worship face digital threats — ransomware, data breaches, phishing attacks — that can be as disruptive as physical security incidents.

Eligible cybersecurity expenses under NSGP include:

• Network firewall hardware and software
• Endpoint protection and antivirus systems for organizational devices
• Email security and anti-phishing tools
• Cybersecurity vulnerability assessments
• Multi-factor authentication implementation
• Staff cybersecurity awareness training
• Secure backup systems for critical organizational data

6. Gray Areas and Conditional Expenses

Some expenses fall into a gray zone where eligibility depends on how they are characterized and documented. These require careful justification in your budget narrative:

Construction with a Security Purpose

If a renovation is directly and exclusively required to install an eligible security system, it may be allowable. Example: reinforcing a door frame specifically to support a new access control system. The key test is whether the construction would be performed solely for the security purpose, not for general building improvement.

Security-Dedicated Vehicles

General church vehicles are not eligible. A vehicle used exclusively for security patrol of a large campus — clearly documented as such — may be eligible in some states. Confirm with your SAA before including this.

Lighting in Multi-Purpose Areas

Lighting in areas used primarily for security monitoring (parking lots, building perimeters) is eligible. Lighting upgrades in areas where the primary purpose is aesthetic or general use requires more careful justification.

Technology with Dual Uses

Some technology products serve both security and general purposes — like a laptop that would be used to monitor security cameras. NSGP requires that funded equipment be used primarily for security purposes. Prorate costs or provide clear documentation of the security use case.

7. Building a Compliant NSGP Budget

A compliant budget does three things: it lists only eligible expenses, it is grounded in real market costs with supporting evidence, and it tells a coherent story about how each item addresses a specific vulnerability.

Get Real Vendor Quotes

For every significant expense, get at least one formal vendor quote before finalizing your budget. This demonstrates that your costs are market-based, not fabricated. Reviewers are experienced — they know what a 16-camera IP system costs, and a number that is wildly off will hurt your credibility.

Write a Budget Narrative

For each line item, write one to three sentences explaining what the item is, why it is needed based on your threat assessment, and how it will improve your security posture. A budget narrative transforms a spreadsheet into a story that reviewers can score positively.

Align Budget to Investment Justification

Every item in your budget should correspond to a vulnerability or threat identified in your Investment Justification. If your IJ mentions inadequate parking lot surveillance coverage, your budget should include cameras and lighting for that specific area. Misalignment between IJ and budget is a common scoring weakness.

8. Real-World NSGP Budget Examples

9. Frequently Asked Questions