Formula Grant
Encyclopedia
A formula grant is a United States
federal
grant
specifying a precise formula in the legislation creating the program. Formula Grants include quantifiable elements, such as population, amount of tax effort, proportion of population unemployed or below poverty level, density of housing, or rate of infant mortality. The specified formula is a rule that tells potential recipient governments precisely how they can calculate the quantity of aid to which they are entitled under the provisions of law, as long as the recipient qualifies for such assistance under the stipulations of the program. Usually, the elements in the formula are chosen to reflect characteristics related to the purpose of the aid. Some factors in the formula are also likely to have political significance since there is no such thing as a neutral formula- all formulas reward some states or localities more than others, depending on their relative standing given the formula specified.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
grant
Grant (money)
Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...
specifying a precise formula in the legislation creating the program. Formula Grants include quantifiable elements, such as population, amount of tax effort, proportion of population unemployed or below poverty level, density of housing, or rate of infant mortality. The specified formula is a rule that tells potential recipient governments precisely how they can calculate the quantity of aid to which they are entitled under the provisions of law, as long as the recipient qualifies for such assistance under the stipulations of the program. Usually, the elements in the formula are chosen to reflect characteristics related to the purpose of the aid. Some factors in the formula are also likely to have political significance since there is no such thing as a neutral formula- all formulas reward some states or localities more than others, depending on their relative standing given the formula specified.