Advancing NATOs Collective Defense and Industrial Capacity

The U.S. Department of State U.S. Mission to NATO Public Diplomacy Section has released the funding opportunity titled Advancing NATO’s Collective Defense and Industrial Capacity under opportunity number DOS-USNATO-PAA-2026-001. This federal grant program is funded through FY26 Smith Mundt Public Diplomacy Funds and is designed to strengthen transatlantic security by advancing understanding of NATO’s role in collective defense, defense industrial cooperation, and innovation. The opportunity is administered through the Office of the Public Affairs Advisor at the U.S. Mission to NATO and supports initiatives that reinforce U.S. leadership within the Alliance while building stronger relationships among policymakers, researchers, industry representatives, defense experts, and emerging leaders across NATO Allied and partner countries. The program seeks to support practical cooperation and long-term network building that contributes to a more capable and resilient Alliance prepared to address evolving security threats. The grant program focuses heavily on public diplomacy outcomes and requires all funded activities to include a direct U.S. component, such as participation by American experts, institutions, or organizations. Projects must clearly demonstrate how they advance U.S. foreign policy priorities within NATO, including burden-sharing, increased defense investment, defense industrial collaboration, and innovation. Competitive proposals are expected to emphasize education, understanding, expertise-building, and cooperation rather than promoting commercial interests or regulatory advantages for specific companies or industries. Priority will be given to programs focused on NATO Allies that strengthen collective defense, improve transatlantic security cooperation, and support shared strategic objectives. Projects involving strategically important non-NATO countries may also be considered if they support NATO-related U.S. foreign policy goals and reinforce awareness of U.S. leadership and Alliance stability efforts. Examples of eligible activities include workshops, seminars, expert exchanges, professional trainings, academic exchanges, digital engagement campaigns, strategic communications efforts, and research convenings related to defense investment, industrial policy, procurement reform, acquisition modernization, financing mechanisms, supply chain resilience, critical infrastructure protection, and emerging technologies. The NOFO specifically encourages projects that support co-production, joint procurement, technology cooperation, and integration of commercial and dual-use technologies into Allied defense capabilities. The program also encourages creative approaches that utilize innovative technologies, targeted audience engagement strategies, measurable outcomes, and products with multiplying effects. Applicants are expected to include monitoring and evaluation plans with measurable indicators and performance metrics demonstrating how project activities will contribute to intended outcomes. Eligible applicants include registered nonprofit organizations, think tanks, civil society organizations, nongovernmental organizations, nonprofit educational institutions, and governmental institutions capable of implementing public diplomacy programs. For-profit entities are explicitly ineligible to apply as prime recipients, although subcontracting arrangements with other organizations are permitted if roles and responsibilities are clearly defined. Organizations are limited to submitting one application under this opportunity. All applicants must obtain a Unique Entity Identifier through SAM.gov and maintain active SAM.gov registration throughout the review and award process. The NOFO allows cost sharing or matching contributions but does not require them. The funding opportunity specifically excludes support for partisan political activities, direct social services, charitable activities, scientific research surveys, lobbying, construction, commercial projects, fundraising campaigns, religious programming, and projects focused primarily on organizational growth or institutional development. Applicants must submit mandatory federal forms SF-424 and SF-424A along with a narrative proposal not exceeding ten pages. Required proposal components include a proposal summary, organizational background, problem statement, program design and methods, implementation timeline, staffing information, partner details, sustainability planning, and a monitoring and evaluation framework containing performance indicators and If-Then logic statements. Applicants must also provide a detailed line-item budget and budget justification narrative covering personnel, fringe benefits, travel, equipment, supplies, consultants, indirect costs, and other direct costs. Additional attachments include resumes for key personnel, letters of support from partners or subrecipients, proof of nonprofit status, proof of organizational registration, and if applicable, a negotiated indirect cost rate agreement. The Department of State may request additional organizational policies, audit documentation, financial controls, procurement procedures, or personally identifiable information protection policies during the review process. Applications must be submitted electronically to USNATOPublicAffairs@state.gov no later than June 20, 2026 at 12:00 CET. The subject line must include the funding opportunity title and number. The anticipated project start date is October 1, 2026, and projects should generally be completed within six to twelve months. Applicants will typically receive notification regarding review outcomes within 120 days following the deadline. Applications will be evaluated using criteria that include quality and feasibility of the program idea, organizational capacity, project planning, budget quality, monitoring and evaluation strength, and sustainability. The review process also includes risk assessments evaluating financial stability, management systems, audit history, and implementation capability. Selected awardees will receive grant agreements administered by a Grants Officer and will be required to submit quarterly financial and programmatic reports, updated monitoring data, and final reports within 120 days of project completion. Funding amounts are anticipated to range from approximately $20,000 to $50,000, with total available funding of $50,000 pending availability of funds. The NOFO anticipates making two awards depending on final funding decisions. Continuation grants beyond the initial budget period may be considered on a noncompetitive basis depending on project performance, funding availability, and Department of State priorities. Award recipients must comply with federal regulations contained in 2 CFR 200 and Department of State standard terms and conditions, including requirements related to trafficking in persons compliance, anti-discrimination laws, reporting obligations, procurement restrictions involving prohibited drone systems, branding requirements, and U.S. government visibility guidelines. The program is part of an annual funding framework and represents an ongoing effort by the U.S. Mission to NATO to strengthen Allied defense cooperation, industrial resilience, and strategic coordination across the transatlantic community.

Demonstrate a direct connection to U.S. foreign policy priorities within NATO including burden-sharing defense investment innovation and industrial collaboration. Emphasize measurable outcomes actionable cooperation and strong monitoring and evaluation metrics. Include a clear U.S. component and practical implementation plan with realistic budgeting and sustainability.