What is a maintenance of effort requirement in grant programs?

• A. The grantee must maintain current levels of funding or service to continue receiving funds.
• B. The grantee can increase funding but not reduce services.
• C. The grantee must match funds from other sources.
• D. The grantee can terminate programs without notice.

Answer: (A)

Maintenance of effort means you must keep funding or service levels at the same level as the previous year in order to continue receiving the grant. It sets a floor: the amount spent or the level of services cannot drop below the prior year, even when new funds are added. The goal is to ensure the grant supports ongoing activities rather than replacing existing commitments, and you may maintain or increase the level, but not fall below it. This is different from requiring matching funds from other sources, and it isn’t about terminating programs or about how much you can raise beyond the baseline.