Formula Grants:
Funding for the Largest Federal Assistance Programs Is Based on Census-Related Data and Other Factors
GAO-10-263: Published: Dec 15, 2009. Publicly Released: Dec 16, 2009.
Additional Materials:
- Highlights Page:
- Full Report:
- Accessible Text:
Contact:
(202) 512-2757
contact@gao.gov
Office of Public Affairs
(202) 512-4800
youngc1@gao.gov
Many federal assistance programs are funded by formula grants that have historically relied at least in part on population data from the decennial census and related data to allocate funds. In June 2009, the Census Bureau reported that in fiscal year 2007 the federal government obligated over $446 billion through funding formulas that rely at least in part on census and related data. Funding for federal assistance programs continues to increase. Government Accountability Office (GAO) was asked to determine (1) how much the federal government obligates to the largest federal assistance programs based on the decennial census and related data, and how the Recovery Act changed that amount; and (2) what factors could affect the role of population in grant funding formulas. To answer these objectives, GAO identified the 10 largest federal assistance programs in each of the fiscal years 2008 and 2009 based on data from the President's fiscal year 2010 budget. GAO reviewed statutes, agency reports, and other sources to obtain illustrative examples of how different factors could affect the role of population data in grant funding.
GAO's analysis showed that each of the 10 largest federal assistance programs in fiscal years 2008 and 2009 relied at least in part on the decennial census and related data--that is, data from surveys with designs that depend on the decennial census, or statistics, such as per capita income, that are derived from these data. For fiscal year 2008, this totaled about $334.9 billion, representing about 73 percent of total federal assistance. For fiscal year 2009, the estimated obligations of the 10 largest federal assistance programs totaled about $478.3 billion, representing about 84 percent of total federal assistance. This amount included about $122.7 billion funded by the Recovery Act and about $355.6 billion funded by other means. Several factors can affect the role of population in grant funding formulas. When a formula includes variables in addition to total population, the role of population in the grant funding formula is less than if the formula relies solely on total population. All of the programs in GAO's review included one or more grants with formulas containing variables other than total population, such as the level of transit service provided. In addition, other factors can modify the amount that a state or local entity would have otherwise received under the formula. These factors include (1) hold harmless provisions and caps; (2) small state minimums; and (3) funding floors and ceilings. With the application of these factors, grant funding may be affected less or entirely unaffected by changes in population.
Dec 10, 2019
-
Federal Real Property:
Measuring Actual Office Space Costs Would Provide More Accurate InformationGAO-20-130: Published: Dec 10, 2019. Publicly Released: Dec 10, 2019.
Nov 27, 2019
-
Securities and Exchange Commission:
Division of Enforcement Should Document Its Procedures for Generating Public ReportsGAO-20-47: Published: Oct 28, 2019. Publicly Released: Nov 27, 2019.
Oct 31, 2019
-
2020 Census:
Status Update on Early OperationsGAO-20-111R: Published: Oct 31, 2019. Publicly Released: Oct 31, 2019.
Oct 29, 2019
-
Infrastructure Projects:
Actions Needed to Fully Develop Performance Schedules for Environmental ReviewsGAO-20-19: Published: Oct 29, 2019. Publicly Released: Oct 29, 2019.
Oct 24, 2019
-
Federal Rulemaking:
Selected Agencies Should Clearly Communicate Public Comment Posting Practices Associated with Identity InformationGAO-20-105T: Published: Oct 24, 2019. Publicly Released: Oct 24, 2019.
Oct 23, 2019
-
2020 Census:
Actions Needed to Improve Census Bureau's Process for Working with Governments to Build Address ListGAO-20-17: Published: Oct 23, 2019. Publicly Released: Oct 23, 2019. -
Disaster Resilience Framework:
Principles for Analyzing Federal Efforts to Facilitate and Promote Resilience to Natural DisastersGAO-20-100SP: Published: Oct 23, 2019. Publicly Released: Oct 23, 2019.
Oct 21, 2019
-
Federal Land Management Agencies:
Additional Actions Needed to Address Facility Security Assessment RequirementsGAO-19-643: Published: Sep 25, 2019. Publicly Released: Oct 21, 2019.
Sep 26, 2019
-
Federal Contracting:
Information on Agencies' Use of the Lowest Price Technically Acceptable ProcessGAO-19-691: Published: Sep 26, 2019. Publicly Released: Sep 26, 2019.
Sep 19, 2019
-
Federal Contracting:
Awards to Mid-Sized Businesses and Options for Increasing Their OpportunitiesGAO-19-523: Published: Aug 20, 2019. Publicly Released: Sep 19, 2019.
Looking for more? Browse all our products here