TARGETING IN FEDERAL-GRANT PROGRAMS - THE CASE OF THE OLDER AMERICANS ACT

How are administrators of categorically based programs adjusting to reduced federal funding? A limited federal budget is pressuring the advocates of programs which have historically used categorical eligibility to consider shifting to means-tested programs. Barbara J Holt traces the evolution of a major federal program, the Older Americans Act, over a 30-year period-from a purely categorically based program to one in which targeting is a major requirement. The first step in this process is the attempt to target those most in need without eliminating services to all others in the category. A survey of state units on aging reveals the extent of compliance and several methods of diluting the targeting effect. The history of this program provides insight into the potential legislative, judicial, and administrative issues for other programs.