Distribution of Block Grant Funding: Considerations for Rural Communities

View Policy Brief

09/2025

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.

ETSU/NORC Rural Health Research Center

Kate Beatty, Casey Balio, Margaret Francisco, Michael Meit, Stephanie Mathis

Healthcare financing, Poverty, Public health, Social determinants of health, Substance use and treatment