Understanding the Funding Structure of the Older Americans Act
The Older Americans Act (OAA) authorizes the U.S. federal government to provide grants to states for a wide range of social services aimed at improving the health, well-being, and independence of older adults. These services are delivered through a nationwide network of State Units on Aging (SUAs) and Area Agencies on Aging (AAAs). While federal funds provide the core support, the OAA's structure requires states and local providers to contribute a non-federal matching share to receive the full grant amount. This leveraging of federal, state, and local resources ensures a robust and comprehensive system of support. The specific match requirements vary depending on the particular OAA title and the type of service being funded.
Non-Federal Share: What Qualifies as a Match?
The non-federal matching share is the portion of program funding that comes from sources other than the federal government. This can take two primary forms:
- Cash contributions: Direct monetary payments from state or local public sources.
- In-kind contributions: Goods or services provided at no cost, such as the value of volunteer time, donated space, supplies, or equipment.
It is important to note that federal funds cannot be used to meet the OAA non-federal match requirement unless there is specific statutory authority, which is rare. Furthermore, resources from means-tested programs are also excluded from being used as a match. States and local agencies are also not allowed to require only cash as a match, as in-kind resources must be accepted as part of the non-federal share.
Match Requirements by OAA Title
The matching requirements for OAA funds vary significantly across the different programs established under the Act. Here is a breakdown of the typical match percentages for key titles:
- Title III-B: Supportive Services and Senior Centers: For supportive services, such as transportation, in-home aid, and multipurpose senior centers, states are required to provide a 15% non-federal matching share. This means that for every 85 cents of federal funding, states and local providers must contribute 15 cents.
- Title III-C: Nutrition Services: This includes both congregate and home-delivered meals programs. The match requirement for these services is also 15%. For the Nutrition Services Incentive Program (NSIP), which provides commodity foods or cash in lieu of commodities, no match is required.
- Title III-E: National Family Caregiver Support Program: This program provides grants to states to fund a range of supports for family caregivers. The match requirement is higher for this title, at 25%.
- Title III-D: Evidence-based Disease Prevention and Health Promotion: This title supports programs that help older adults improve their health and well-being. Unlike most other titles, no match is required for funds received under Title III-D.
- State and Area Plan Administration: The administrative costs associated with running OAA programs also have a match requirement. Generally, the non-federal share for administration is 25%.
Comparing Different Match Requirements
| OAA Program | Federal Share | Non-Federal Share (Match) | Match Details |
|---|---|---|---|
| Title III-B (Supportive Services) | 85% | 15% | Can be cash, in-kind, or a combination. |
| Title III-C (Nutrition Services) | 85% | 15% | Can be cash, in-kind, or a combination. |
| Title III-D (Health Promotion) | 100% | 0% | No match required. |
| Title III-E (Caregiver Support) | 75% | 25% | Can be cash, in-kind, or a combination. |
| Administrative Costs | 75% | 25% | Can be cash, in-kind, or a combination. |
Cost-Sharing vs. Matching Funds
It is important to distinguish between the non-federal matching requirements and consumer cost-sharing. Cost-sharing is a policy that allows states to charge fees for certain services to individuals with higher incomes, based on a sliding scale. The purpose of cost-sharing is to supplement and expand services, not to meet the federal match requirement. There are key differences:
- Match requirements are a prerequisite for receiving federal funds and are primarily the responsibility of the state and local agencies.
- Cost-sharing is a voluntary contribution from the individual receiving the service and is not mandatory for those below the federal poverty line.
Certain services are explicitly excluded from cost-sharing, such as congregate and home-delivered meals, outreach, and legal assistance. Furthermore, services cannot be denied to an individual based on their inability or failure to make a cost-sharing payment. The non-federal matching funds, on the other hand, must be secured for the state or area agency to receive the grant.
Maintaining Effort and Leveraging Resources
Beyond the base match percentages, the OAA also emphasizes that states must use federal funds as a catalyst to leverage additional public and private funding. Many states voluntarily exceed the minimum required match, a practice known as “overmatching,” to enhance and expand their services. The state's ability to maintain its own level of spending, known as maintenance of effort, is also a key compliance consideration. This helps ensure that federal funds are used to build upon, rather than replace, existing state and local investments in senior services.
Conclusion
The match requirements under the Older Americans Act are a foundational element of its funding model, designed to maximize the impact of federal investment by securing a non-federal share. These requirements vary by program, with supportive services and nutrition programs typically requiring a 15% match, while family caregiver support and administrative costs require a 25% match. By understanding these rules and leveraging all available non-federal resources, including in-kind contributions, states and local agencies can ensure a steady and robust funding stream for the critical services that support the health and independence of older adults across the nation. For more details on the OAA, consult resources from the Administration for Community Living (ACL) at https://acl.gov/.
