Summary

Pursuant to a congressional request, GAO provided information on how proposed changes to the funding formula for title III of the Older Americans Act would affect equity in state funding and per-person-in-need income. GAO found that: (1) the proposed formula changes would improve funding equity and target more aid to the elderly in the oldest age groups and low-income states; (2) the formula changes would not affect small states that are guaranteed at least 0.5 percent of the funds made available for state distribution; (3) the changes would reduce cross-state disparities, increase funding for states whose funding is below the national average, and decrease funding for those states whose funding is above the average; and (4) funding disparities could be further reduced if minority status and poverty were included in the formula changes.