TABLE B-1 Twelve Large Formula Allocation Programs

Catalog Numbera

Program

Total Obligations FY 1999 ($billions)

93.778

Medical Assistance Program (Medicaid)

111.1

20.205

Federal-Aid Highway Program

26.2

93.558

Temporary Assistance for Needy Families (TANF)

18.8

84.010

Title I Education

7.7

10.555

National School Lunch Program (Food portion)

5.5

84.027

Special Education Grants to States

4.3

93.767

State Children’s Health Insurance Program (SCHIP)

4.2

93.658

Foster Care, Title IV-E

4.0

14.218

Community Development Block Grants

Entitlement Grants

3.0

10.557

WIC (food portion)

2.9

93.959

Substance Abuse Prevention and Treatment

Block Grants

1.5

66.458

EPA State Capitalization Grants

1.3

Total

 

190.5

aCatalog of Federal Domestic Assistance classification.

first 10 programs are those with the largest obligations in FY 1999. In addition, the substance abuse block grants program is discussed for its unique approach to equalizing fiscal capacity between states, as is EPA’s state capitalization grants program, one of the few with numerical values of shares specified in legislation.

FEATURES OF INTEREST BY PROGRAM

Medical Assistance Program (Medicaid)

  • Medicaid is by far the largest federal formula allocation program, accounting for 45 percent of total obligations for such programs in FY 1999. The key element of the formula is the federal medical assistance percentage (FMAP), which determines the proportions of state expenditures that will be reimbursed by the federal government. FMAP is also used,



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