Considerations for the Use of Area-Level Vulnerability and Resilience Indices and Rurality in Funding Formulas

Federal funding, including through block grants, provides states with considerable flexibility in allocating funds. States therefore allocate these funds in a variety of ways and based on different factors, including recently popularized area-level measures such as the Social Vulnerability Index (SVI), and measures of population size, poverty, and rurality.

The purpose of this study is to model how funding formula structures within states affect allocation amounts to counties. This national study will develop formula options using different structural elements (i.e., inclusion of the Social Vulnerability Index, use of rural carve-outs or floor amounts, and other factors) and then estimate and map funding amounts allocated to counties. The use of different formula elements may provide states with examples for how to structure their formulas for future funding based on federal allocations. Findings from this study are designed to identify how potential funding formulas and structures affect allocations, which may inform federal and state guidance regarding formulas and resource allocations and what the implications are for rural communities.