These federal grants are created with a precise formula in the legislation to create a program. They include quantifiable elements, the specified formula, characteristics directly related to the purpose, and generally have political significance.

Specified Formula

This is the rule which informs potential funding recipients of how they can specifically calculate the amount of aid with which they can receive under the grant provisions. Naturally, the recipient must qualify for the assistance based on the program stipulations.

Quantifiable Elements

These can be based off of many different types of quantifiable data, however, here are a few to give you and idea of the variety: density of housing, population, amount of tax effort, fate of infant mortality, proportion of population by education level, and other demographic data.

Political Significance

All formulas are not neutral based on a variety of their factors. Therefore, they are likely to have political significance considering how they each would reward some localities or states more than others. This does depend on their relative standing by how the formula is specified.

Formula Grant Characteristics

These are generally related to the quantifiable elements being based on the purpose of the aid.