What term describes funds allocated by the U.S. Department of Education to state education agencies which are then competitively distributed?

The term that describes funds allocated by the U.S. Department of Education to state education agencies, which are then competitively distributed, is competitive grants. These grants are designed to encourage innovation and improvement in educational practices and programs, as they require applicants to compete for funding based on specific criteria and proposals that demonstrate effectiveness and feasibility.

These types of grants often have particular priorities and eligibility requirements, meaning that only certain projects may qualify for funding. This competitive aspect aims to promote excellence and efficient use of resources within the education sector. By allowing state education agencies to distribute these funds, it encourages localities to develop unique solutions that best address their educational needs and challenges.

In contrast, other types of funding such as formula grants are typically allocated based on predefined formulas related to statistical data, equity funding focuses on ensuring fair distribution of resources, and block grants provide lump sums of money for broader purposes without competitive criteria. Each of these categories serves different administrative and educational objectives, but the competitive grants specifically emphasize competitive selection to drive improvement and innovation in education.