Trends in Development in 2025: A Conversation with Bill Steiger and the Grant Assistant Team
The nature of international development aid is poised for a profound transformation. What do these changes mean for organizations seeking U.S. government grants, especially those from agencies like USAID? How can nonprofits, social enterprises, and NGOs position themselves to thrive in this evolving environment? These were some of the pressing questions explored in a recent conversation led by Patrick Schmitt of Freewill and featuring Dr. Bill Steiger, former Chief of Staff at USAID (2017–2021), and Rob Russell, Chief Revenue Officer at Grant Assistant.
Below are the key insights that emerged, offering a glimpse into the development sector’s next chapter and how organizations can stay ahead. Both Steiger and Russell acknowledge a simple truth: The U.S. foreign assistance enterprise is an immense, complex machine that rarely pivots overnight. Nonetheless, realignments—especially those influenced by a new U.S. administration—can steadily reshape its priorities, investments, and beneficiaries.
In the last two decades, we’ve watched the field evolve from a top-down donor-recipient model to something more nuanced: a commitment to sustainable growth, local capacity-building, and private sector collaboration. Today, these forces are converging in powerful ways.
Six Emerging Trends Defining USAID’s Future
Dr. Steiger outlined six major shifts that organizations should anticipate in the next four years:
Smaller Budgets: Expect leaner financial appropriations by 2029. The development budget will likely contract, demanding more efficient use of limited funds.
Reduced Geographic Footprint: USAID’s presence could shrink, focusing on fewer countries—particularly those most in need or of strategic interest. Countries nearing self-sufficiency may see a gradual phase-out of traditional aid models.
Localization as Standard Practice: The call for “localization” isn’t going anywhere. Expect to see more direct funding to community-based groups and local partners—both a challenge and an opportunity for established implementers.
Pivot to the Private Sector: Sustainable economic growth and job creation will take center stage. Tools like blended finance and partnerships with local and international businesses will be integral to USAID’s efforts.
Efficiency & Technology-Driven Reform: The quest for efficiency spans both cost and time. USAID is ripe for technological disruption, from streamlined procurement processes to the integration of AI and geospatial data for more targeted, impactful programming.
Innovation and Scale: While pilots and niche interventions abound, the agency now aims to invest in proven solutions that can achieve transformative scale. The emphasis will be on replicable models that generate measurable impact.
What This Means for Organizations
For Larger, Established Implementers: Adaptation is key. You may need to pivot from acting solely as a prime contractor to becoming a mentor for smaller, local partners. Consider offering value-added services—shared administrative resources, compliance support, and capacity-building trainings. Moving from large, traditional RFPs to more nimble, performance-based awards will require new strategies and skill sets.
For Smaller and Local Organizations: This changing landscape is good news. New partner entry points, simplified concept notes, multilingual submissions, and smaller, performance-based awards lower the barrier to entry. Local actors can now compete more effectively and access funding that once seemed out of reach.
For Faith-Based and Community Groups: Expect more direct engagement opportunities. USAID and other donors are looking for ways to partner with community-rooted organizations—both faith-based and secular—to deliver services, strengthen local institutions, and catalyze lasting social change.
Leveraging Technology and Innovation Russell highlighted the power of technology—especially AI—to level the playing field in proposal development and program design. Tools like Grant Assistant that streamline compliance, translate documents, and ensure cost-effectiveness can help new entrants compete with incumbents. They can also help longtime grantees pivot quickly and efficiently in response to new criteria and priorities.
Looking Beyond USAID: Diversifying Your Funding Base
As USAID budgets tighten and priorities shift, it’s prudent to consider a more diversified funding portfolio. European donors, private foundations, philanthropic investors, and emerging markets all offer alternative support avenues. While all donors face their own constraints, those who align with local priorities, demonstrate efficiency, and show a capacity for innovation will stand a better chance of securing needed resources.
Positioning Yourself for Success
Embrace Change: Use the next few months to adapt internal strategies, organizational structures, and skill sets. Being proactive now will pay dividends later.
Invest in Technology: Whether it’s AI-driven proposal writing tools or platforms that streamline proposal development like Grant Assistant, leveraging technology can sharpen your competitive edge.
Engage in Dialogue: Don’t wait for opportunities to fall from the sky. Provide feedback to donors—let them know what’s working, what’s burdensome, and what improvements could unlock greater impact.
Diversify and Experiment: Test new funding mechanisms, pilot innovative approaches, and seek partners who complement your strengths. Today’s small pivot may lead to tomorrow’s major breakthrough.
Conclusion: A Future Full of Promise—For the Adaptive
In an era defined by geopolitical shifts, budget constraints, and technological advances, the development community stands on the brink of transformation. Organizations that embrace localization, lean into private sector partnerships, and seize the potential of technology will not only survive but thrive. The next few years will demand flexibility, creativity, and, above all, a willingness to learn. For those prepared to adapt, this could be the start of a more impactful, sustainable, and inclusive era in global development.
William Raymond Steiger served as Chief of Staff at the United States Agency for International Development (USAID) from 2017 to 2021. Previously, Dr. Steiger was the Chief Program Officer at Pink Ribbon Red Ribbon, an organization affiliated with the George W. Bush Institute that works to reduce deaths from cervical and breast cancer in low- and middle-income countries. During the George W. Bush administration, he served as the Special Assistant to the Secretary for International Affairs and Director of the Office of Global Health Affairs at the U.S. Department of Health and Human Services (HHS), overseeing initiatives on HIV/AIDS, malaria, avian flu, and pandemic-influenza preparedness.
About Patrick Schmitt:
Patrick is a co-CEO for FreeWill, a company with a mission to move one trillion to non-profits. He founded two nonprofit organizations and served as the Head of Innovation at Change.org, where he helped grow the organization to 200 million+ users in four years.
About Rob Russell:
Rob is a seasoned business development professional with more than 25 years of experience working with a broad range of public sector partners. He is the Chief Revenue Officer at Grant Assistant. Previously, he led a business unit focused on mitigating risk and fraud in public programs at Thomson Reuters and served as Vice President of Business Development at DSA.
Trends in Development in 2025: A Conversation with Bill Steiger and the Grant Assistant Team
The nature of international development aid is poised for a profound transformation. What do these changes mean for organizations seeking U.S. government grants, especially those from agencies like USAID? How can nonprofits, social enterprises, and NGOs position themselves to thrive in this evolving environment? These were some of the pressing questions explored in a recent conversation led by Patrick Schmitt of Freewill and featuring Dr. Bill Steiger, former Chief of Staff at USAID (2017–2021), and Rob Russell, Chief Revenue Officer at Grant Assistant.
Below are the key insights that emerged, offering a glimpse into the development sector’s next chapter and how organizations can stay ahead. Both Steiger and Russell acknowledge a simple truth: The U.S. foreign assistance enterprise is an immense, complex machine that rarely pivots overnight. Nonetheless, realignments—especially those influenced by a new U.S. administration—can steadily reshape its priorities, investments, and beneficiaries.
In the last two decades, we’ve watched the field evolve from a top-down donor-recipient model to something more nuanced: a commitment to sustainable growth, local capacity-building, and private sector collaboration. Today, these forces are converging in powerful ways.
Six Emerging Trends Defining USAID’s Future
Dr. Steiger outlined six major shifts that organizations should anticipate in the next four years:
Smaller Budgets: Expect leaner financial appropriations by 2029. The development budget will likely contract, demanding more efficient use of limited funds.
Reduced Geographic Footprint: USAID’s presence could shrink, focusing on fewer countries—particularly those most in need or of strategic interest. Countries nearing self-sufficiency may see a gradual phase-out of traditional aid models.
Localization as Standard Practice: The call for “localization” isn’t going anywhere. Expect to see more direct funding to community-based groups and local partners—both a challenge and an opportunity for established implementers.
Pivot to the Private Sector: Sustainable economic growth and job creation will take center stage. Tools like blended finance and partnerships with local and international businesses will be integral to USAID’s efforts.
Efficiency & Technology-Driven Reform: The quest for efficiency spans both cost and time. USAID is ripe for technological disruption, from streamlined procurement processes to the integration of AI and geospatial data for more targeted, impactful programming.
Innovation and Scale: While pilots and niche interventions abound, the agency now aims to invest in proven solutions that can achieve transformative scale. The emphasis will be on replicable models that generate measurable impact.
What This Means for Organizations
For Larger, Established Implementers: Adaptation is key. You may need to pivot from acting solely as a prime contractor to becoming a mentor for smaller, local partners. Consider offering value-added services—shared administrative resources, compliance support, and capacity-building trainings. Moving from large, traditional RFPs to more nimble, performance-based awards will require new strategies and skill sets.
For Smaller and Local Organizations: This changing landscape is good news. New partner entry points, simplified concept notes, multilingual submissions, and smaller, performance-based awards lower the barrier to entry. Local actors can now compete more effectively and access funding that once seemed out of reach.
For Faith-Based and Community Groups: Expect more direct engagement opportunities. USAID and other donors are looking for ways to partner with community-rooted organizations—both faith-based and secular—to deliver services, strengthen local institutions, and catalyze lasting social change.
Leveraging Technology and Innovation Russell highlighted the power of technology—especially AI—to level the playing field in proposal development and program design. Tools like Grant Assistant that streamline compliance, translate documents, and ensure cost-effectiveness can help new entrants compete with incumbents. They can also help longtime grantees pivot quickly and efficiently in response to new criteria and priorities.
Looking Beyond USAID: Diversifying Your Funding Base
As USAID budgets tighten and priorities shift, it’s prudent to consider a more diversified funding portfolio. European donors, private foundations, philanthropic investors, and emerging markets all offer alternative support avenues. While all donors face their own constraints, those who align with local priorities, demonstrate efficiency, and show a capacity for innovation will stand a better chance of securing needed resources.
Positioning Yourself for Success
Embrace Change: Use the next few months to adapt internal strategies, organizational structures, and skill sets. Being proactive now will pay dividends later.
Invest in Technology: Whether it’s AI-driven proposal writing tools or platforms that streamline proposal development like Grant Assistant, leveraging technology can sharpen your competitive edge.
Engage in Dialogue: Don’t wait for opportunities to fall from the sky. Provide feedback to donors—let them know what’s working, what’s burdensome, and what improvements could unlock greater impact.
Diversify and Experiment: Test new funding mechanisms, pilot innovative approaches, and seek partners who complement your strengths. Today’s small pivot may lead to tomorrow’s major breakthrough.
Conclusion: A Future Full of Promise—For the Adaptive
In an era defined by geopolitical shifts, budget constraints, and technological advances, the development community stands on the brink of transformation. Organizations that embrace localization, lean into private sector partnerships, and seize the potential of technology will not only survive but thrive. The next few years will demand flexibility, creativity, and, above all, a willingness to learn. For those prepared to adapt, this could be the start of a more impactful, sustainable, and inclusive era in global development.
William Raymond Steiger served as Chief of Staff at the United States Agency for International Development (USAID) from 2017 to 2021. Previously, Dr. Steiger was the Chief Program Officer at Pink Ribbon Red Ribbon, an organization affiliated with the George W. Bush Institute that works to reduce deaths from cervical and breast cancer in low- and middle-income countries. During the George W. Bush administration, he served as the Special Assistant to the Secretary for International Affairs and Director of the Office of Global Health Affairs at the U.S. Department of Health and Human Services (HHS), overseeing initiatives on HIV/AIDS, malaria, avian flu, and pandemic-influenza preparedness.
About Patrick Schmitt:
Patrick is a co-CEO for FreeWill, a company with a mission to move one trillion to non-profits. He founded two nonprofit organizations and served as the Head of Innovation at Change.org, where he helped grow the organization to 200 million+ users in four years.
About Rob Russell:
Rob is a seasoned business development professional with more than 25 years of experience working with a broad range of public sector partners. He is the Chief Revenue Officer at Grant Assistant. Previously, he led a business unit focused on mitigating risk and fraud in public programs at Thomson Reuters and served as Vice President of Business Development at DSA.