@Krellin,
"Why do people such as yourself Hecks - (like you, not necessarily you) - who have given their lives over to historical preservation - think that the government is necessary to preserve historical stuff, as opposed to private money?"
Yeah, no, that's a good point. If it were me, I wouldn't be going after this money. Unlike a lot of (perhaps most) other museums, we don't apply for any government money (federal, state, or local) for our annual operations. Once every five years or so, we ask for a chunk of money for a specific capital project. Of the half-a-million I raise every year for operations, none comes from government sources.
But, to be honest, we've had much better results with private money. Individuals and private foundations who value our work. They're willing to trust us with their money without making a lot of specific demands because they've seen that we do good work. That flexibility lets us be better at, and in most cases more cost effective in the kind of work we do.
Government grants generally come with a lot more strings attached (you can fund this kind of publication but not that kind, you can hire this person as a consultant but not that person, etc etc etc), Government money come in big chunks, but makes generally makes museums slower, less innovative, more complacent, and often less responsive to the community's needs. Most museums would be well-advised to pass it up, especially given the amount of time you have to spend on compliance.