Older Americans Act: Funding Formulas (CRS Report for Congress)
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Release Date |
Revised March 18, 2019 |
Report Number |
RS22549 |
Report Type |
Report |
Authors |
Kirsten J. Colello, Specialist in Health and Aging Policy |
Source Agency |
Congressional Research Service |
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Summary:
The Older Americans Act (OAA) is the major vehicle for the delivery of social and nutrition services for older persons. The act's statutory funding formulas determine allotments to states and other entities under the following OAA Titles: Title III, Grants for State and Community Programs; Title V, the Community Service Senior Opportunities Act; Title VI, Grants for Older Native Americans; and Title VII, Vulnerable Elder Rights Protection Activities. This report describes the OAA statutory provisions that allocate funds to states and other entities under various titles of the act.
Title III accounts for 73% of the act's total FY2019 discretionary appropriations ($1.498 billion out of $2.055 billion). States receive separate allotments of funds for the following six programs authorized under Title III: (1) supportive services and senior centers, (2) congregate nutrition services, (3) home-delivered nutrition services, (4) the Nutrition Services Incentive Program (NSIP), (5) disease prevention and health promotion services, and (6) the National Family Caregiver Support Program (NFCSP). Formula grants are allotted from the Administration on Aging (AOA), within the Administration for Community Living (ACL) in the Department of Health and Human Services (HHS), to State Units on Aging (SUAs) in all 50 states, the District of Columbia, Puerto Rico, and the U.S. territories. The states, in turn, award funds to approximately 629 Area Agencies on Aging (AAAs).
Title V authorizes the Community Service Employment for Older Americans Program (CSEOA). Administered by the Department of Labor (DOL), Title V is OAA's second-largest program and is the only federally subsidized employment program for low-income older persons. Its FY2019 funding of $400 million represents 20% of the act's total discretionary funding. DOL allocates Title V funds for grants to state agencies in all 50 states, the District of Columbia, Puerto Rico, and the U.S. territories, and to national grantees who are typically nonprofit organizations that operate in more than one state. The total Title V state allotment is the sum of its respective state agency grantee allotment and national grantee allotment.
Title VI authorizes funds for supportive and nutrition services to older Native Americans to promote the delivery of home and community-based supportive services, nutrition services, and family caregiver support. Funds are awarded directly to Indian tribal organizations, Alaskan Native organizations, and nonprofit groups representing Native Hawaiians.
Title VII authorizes the Long-Term Care (LTC) Ombudsman Program and elder abuse, neglect, and exploitation prevention programs. Most Title VII funding is directed at the LTC Ombudsman Program, the purpose of which is to investigate and resolve complaints of residents of nursing facilities and other long-term care facilities. Funds for LTC ombudsman and elder abuse prevention activities are allotted to all 50 states, the District of Columbia, Puerto Rico, and the U.S. territories.
The Older Americans Act Reauthorization Act of 2016 (P.L. 114-144) authorizes appropriations for most OAA programs through FY2019. P.L. 114-144 also made changes to the statutory funding formulas for several programs under Title III of the act. Appendix A of the report provides a detailed legislative history of the Title III funding formula changes, including changes under P.L. 114-144, as well as the OAA reauthorizations of 2000 and 2006. Appendix B provides an analysis of the state-based population data for the U.S. population age 60 and older. Appendix C compares FY2016 allotment amounts for states and other entities with actual allotment amounts under the statutory funding formula change in P.L. 114-144 for FY2017 to FY2019 for Title III Parts B, C, and D programs.