II. MANDATORY GRANT AWARDS

FY 2001 TOTAL: $170,374,780,048
Mandatory Grant Awards by Grant Type

The HHS mandatory grant awards comprise 85% of the total FY 2001 grant funds, but only 7% of the total number of grant awards made in FY 2001. Mandatory grants are those that a Federal agency is required by statute to award if the recipient, usually a State, submits an acceptable State Plan or application, and meets the eligibility and compliance requirements of the statutory and regulatory provisions of the grant program. In the past, mandatory grants were sometimes referred to as "formula grants."

HHS awards three types of mandatory grants:

• Block: A mandatory grant where the recipients, normally States, have substantial authority over the type of activities to support, with minimal Federal administrative restrictions. The basic premise is that States should be free to target resources and design administrative mechanisms to provide services to meet the needs of their citizens.

• Closed-Ended: A mandatory grant where the award constitutes an upper limit on the amount of funds the Federal Government may pay for program activities. The grants for State and community programs on aging, under Title III of the Older Americans Act are closed-ended grants.

• Open-Ended Entitlement: A mandatory grant where there is no upper limit on the amount of funds the Federal Government will pay for allowable services and activities, where the Federal Government pays a statutorily-required share of costs without dollar limits. The principal entitlement grants of the Social Security Act are: 1) Child Support Enforcement and Establishment of Paternity, 2) Foster Care and Adoption Assistance, and 3) Medical Assistance (Medicaid).