Special Analysis 09-01 Inventory of State Matching and MOE Requirements October 16, 2009
Summary Although the federal government provides state and local governments with almost $500 billion in federal funds each year, most of these funds come with strings attached. Some grants require states to implement certain program changes—such as the testing provisions in No Child Left Behind—and many require states to contribute to the cost of the program through matching or maintenance-of-effort (MOE) requirements.
Typically, a program’s authorizing legislation specifies a minimum percentage for the state share. In some cases, the authorizing legislation allows the state share to consist of in-kind contributions, such as property and equipment. MOE requirements specify the level of financial effort a state must maintain in a certain program area to receive federal funds.
Special Analysis 08-01 Existing Grants Offer Quick, Effective Stimulus Options December 15, 2008
With each passing day, a growing number of alternatives are being offered as economic stimulus proposals. The conventional wisdom is that such a program will include components targeted to both individuals and states.
For individuals, programs such as unemployment insurance and the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), are frequently mentioned. For states, infrastructure investment—especially for “ready-to-go” projects—and support for Medicaid and other grant programs through an increase in the federal medical assistance percentage (FMAP) are the most commonly cited strategies. To date, however, little information has been offered as to how such a stimulus package might be structured and what it might offer to individual states. Moreover, recent “project creep” has raised the specter of new and different forms of federal aid for states in areas such as emerging technologies, energy grids, conservation and the like.
