The announcement was made by the US Agency for International Development (USAID) at a ceremony attended by representatives from over 100 non-governmental and private organisations.
Following the announcement, a workshop was held in which participants learned about the program, including the mechanism for awarding grants and a revised application process that is easier to use for new applicants.
"With USD 5.3 million now available for development activities in FATA and Khyber Pakhtunkhwa, we are looking to fund unique and innovative initiatives that focuses on access to basic education and increase in positive civic participation," USAID Mission Director for Pakistan, Gregory Gottlieb said.
This program is one component of the Small Grants and Ambassador's Fund Program (SGAFP), which was launched in 2010 by USAID to help Pakistani communities implement their initiatives.
"The US government is committed to developing FATA and Khyber Pakhtunkhwa. We have made substantial investments in reconstruction, improving governance and bringing economic opportunities. We look forward to this region becoming increasingly secure, productive and prosperous," the US Consul General in Peshawar, Jon Danilowicz, who was also present at the event, said.
US assistance helps build infrastructure, improve education and health, spur economic development and strengthen the Pakistani government's ability to provide basic services to residents.
Since its launch, SGAFP has provided USD 22 million through 167 projects which include establishing temporary and permanent schools, training and mentoring new teachers, preserving languages and dialects and empowering women.
These projects are improving the quality of life for 4,50,000 households across 80 districts in Pakistan.
The Small Grants Program now welcomes new applications from both Khyber Pakhtunkhwa and the FATA.
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