What type of grants are allocated based on predetermined formulas?

The correct answer is formula grants. These grants are specifically designed to be allocated based on predetermined formulas that take into account certain eligible criteria. This might include population size, income levels, or specific need indicators, which help determine how much funding a jurisdiction receives.

Formula grants are often used by federal and state governments to ensure that funds are distributed equitably and objectively based on measurable factors. This method of allocation allows for a more systematic and predictable distribution of funds, as entities know in advance how much they are eligible to receive based on the established formula.

Discretionary grants, on the other hand, provide funding based on the competitive application process, where fund providers have discretion in choosing recipients based on their proposals or ideas. Block grants consist of large sums of money given to local governments with few restrictions on how the money can be used, though their allocation is not strictly formulaic. Competitive grants require applicants to compete for the funding based on specific criteria, which involves a different selection process altogether.