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Rural Health
Research Gateway

Research Alert: September 4, 2025

New Research on Block Grants in Rural Communities

A Rural Lens on Federal Block Grant Distribution

Block grant funding is used across federal agencies, including in the areas of public health and social services. This multi-pronged qualitative study uses document review and interviews with key informants from federal agencies responsible for administering five block grants across three agencies. Researchers identify potential opportunities to improve consideration of rurality within block grant allocation processes, such as exploring the role of rural carve-outs and encouraging collaboration with rural partners.

Key Findings:

  • Funding formulas are complex, challenging to change, and often based on historical funding levels.
  • Rurality is often not explicitly considered in block grant formulas and state allocations.
  • The goals or intended outcomes vary by block grant and were generally described as broad and flexible, allowing states and local entities to adjust their activities to meet program goals.

Distribution of Block Grant Funding: Considerations for Rural Communities

Block grant funding allows states flexibility in how to use and allocate these funds. This study conducted interviews with state and local key informants who manage or receive funding from three federal block grant programs to describe priority areas, funding mechanisms, and barriers and facilitators to allocating and using block grant funding, especially in rural communities.

Key Findings:

  • How block grant funding is allocated within states varies by both state and block grant, and if and how rurality is considered in these processes.
  • Staffing issues were commonly reported as a barrier to funding distribution and use, which may be particularly impactful for rural agencies and communities.
  • The flexibility of block grant funding and the ability of state agencies to work with and support local agencies that receive block grant funding were noted as facilitators for funding distribution and use.
Contact Information:

Casey Balio, PhD
ETSU/NORC Rural Health Research Center
Phone: 630.561.6713
balioc@etsu.edu

Additional Resources of Interest: