

Order Code RL33880
Older Americans Act: FY2007 Funding
and FY2008 Budget Request
Updated June 19, 2007
Angela Napili
Information Research Specialist
Knowledge Services Group
Older Americans Act: FY2007 Funding and FY2008
Budget Request
Summary
The Older Americans Act (OAA) is the major federal vehicle for the delivery
of social and nutrition services for older persons. These include supportive services,
congregate nutrition services (meals served at group sites such as senior centers,
community centers, schools, churches, or senior housing complexes), home-delivered
nutrition services, community service employment, the long-term care ombudsman
program, and services to prevent the abuse, neglect and exploitation of older persons.
The OAA also supports grants to Native Americans and research, training, and
demonstration activities.
Continuing Resolution P.L. 110-5 (121 Stat. 8) provides funding through the
end of FY2007. The President signed the bill into law on February 15, 2007. P.L.
110-5 provides an increase of $20.4 million over FY2006 levels for Title III nutrition
programs and an increase of $51.3 million over FY2006 levels for Title V
community service employment. Total FY2007 funding for OAA programs is
$1.855 billion, 4% higher than in FY2006.
For FY2008, the President’s budget requests a total of $1.685 billion for OAA
programs, a 9% reduction from the FY2007 funding level. The budget requests
$1.216 billion for Title III, Grants for State and Community Programs on Aging, a
4% reduction from the FY2007 level. No funding is requested for the disease
prevention and health promotion program under Title III; the program was funded at
$21.4 million in FY2007.
The FY2008 budget request also includes $350.0 million for the Title V
community service employment program, a reduction of 28% from the FY2007 level
of $483.6 million. The budget requests $35.5 million in funding for Title IV training,
research, and demonstration grants, a 47% increase from the FY2007 level.
The OAA was reauthorized through FY2011 by P.L. 109-365. For information
on the 2006 amendments, see CRS Report RL31336, Older Americans Act:
Programs, Funding, and 2000 Reauthorization, by Carol O’Shaughnessy and Angela
Napili.
This report was originally co-authored with Carol O’Shaughnessy It will be
updated as warranted.
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
FY2007 Funding and FY2008 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Title III. Grants for State and Community Programs on Aging . . . . . . . . . . . 2
Title IV. Activities for Health, Independence and Longevity . . . . . . . . . . . . 3
Title V. Community Services Senior Opportunities Act . . . . . . . . . . . . . . . . 4
Title VII. Vulnerable Elder Rights Protection Activities . . . . . . . . . . . . . . . . 5
Alzheimer’s Disease Demonstration Grants . . . . . . . . . . . . . . . . . . . . . . . . . 5
List of Tables
Table 1. The Older Americans Act, Alzheimer’s Demonstration Grants,
and White House Conference on Aging Funding, FY2000-FY2007,
and FY2008 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
List of Figures
Figure 1. Older Americans Act, FY2007 Funding ($1.855 billion) . . . . . . . . . . . 8
Figure 2. Funding for Older Americans Act Programs, FY2000-FY2007,
and FY2008 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Older Americans Act: FY2007 Funding
and FY2008 Budget Request
Introduction
Originally enacted in 1965, the Older Americans Act (OAA) supports a wide
range of social services and programs for older persons. These include supportive
services, congregate nutrition services (meals served at group sites such as senior
centers, community centers, schools, churches, or senior housing complexes), home-
delivered nutrition services, community service employment, the long-term care
ombudsman program, and services to prevent the abuse, neglect, and exploitation of
older persons. Except for Title V, the Community Service Senior Opportunities Act,
all programs are administered by the Administration on Aging (AoA) in the
Department of Health and Human Services (DHHS). Title V is administered by the
Department of Labor (DOL).
The OAA was reauthorized in 2006 by P.L. 109-365. For further information,
see CRS Report RL31336, The Older Americans Act: Programs, Funding, and 2006
Reauthorization (P.L. 109-365), by Carol O’Shaughnessy and Angela Napili.
Table 1 summarizes OAA appropriations from FY2000 through FY2007, and
includes details of the FY2008 budget request. The table also includes funding for
the Alzheimer’s Disease Demonstration Grants and the 2005 White House
Conference on Aging. Figure 1 shows the distribution of FY2007 funding by
program. Figure 2 shows total OAA funding from FY2000 through FY2007, and
total OAA funding proposed in the FY2008 budget request.
For information on OAA appropriations in earlier years, see CRS Report
RL32437, Older Americans Act: History of Appropriations, FY1966-FY2004, by
Carol O’Shaughnessy.
FY2007 Funding and FY2008 Budget Request
Continuing Resolution P.L. 110-5 (121 Stat. 8) provided funding through the
end of FY2007. Signed by the President on February 15, 2007, the Continuing
Resolution provides an increase of $20.4 million over FY2006 levels for Title III
nutrition programs and an increase of $51.3 million over FY2006 levels for Title V
community service employment. The bill did not specify precise dollar figures for
other OAA programs, and there was some flexibility for agencies to determine
program amounts based on FY2006 enacted appropriations levels. Agencies were
required to report the program amounts to the appropriations committees within 30
days of enactment (§ 113). Based on information obtained from DOL and AoA, total
CRS-2
FY2007 funding for all OAA programs is $1.855 billion, 4% higher than in FY2006.1
The Administration’s FY2008 budget requests $1.685 billion, 9% lower than the
FY2007 level.
Title III. Grants for State and Community Programs on Aging
The major program under the OAA, Title III — Grants for State and Community
Programs on Aging — authorizes grants to 56 state and 655 area agencies on aging
to act as advocates on behalf of, and to coordinate programs for, older persons. Title
III accounted for 68% of the OAA’s total FY2007 funding. States receive separate
allotments of funds for supportive services and centers, family caregiver support,
congregate and home-delivered nutrition services, the nutrition services incentive
grant program, and disease prevention and health promotion services.
For FY2007, all Title III programs received $1.263 billion. P.L.110-5 provided
an increase over the FY2006 levels of $13.9 million (a 4% increase) for congregate
meals and $6.5 million (a 4% increase) for home-delivered meals.
The FY2008 budget request is $1.216 billion, a 4% reduction from the FY2007
level. The budget request would eliminate funds for Title III-D disease prevention
and health promotion, which was funded at $21.4 million in FY2007. The
Administration’s AoA Budget Justification indicates that states would still be able
to provide disease prevention and health promotion activities with funds from Title
III-B home and community-based supportive services.2 The Administration also
indicates that AoA envisions using “evidence-based” prevention and “integrating
prevention as an underlying principle” in its programs, rather than providing “a small
funding stream of unfocused seed money” through the separate disease promotion
and health promotion services program.3 Under the FY2008 request, funding for
congregate nutrition and home-delivered nutrition would each decrease 4% from
FY2007 levels. Funding for family caregiver support would decrease 1% from
FY2007, and nutrition services incentive grants would decrease 0.5% from FY2007.
Funding for supportive services and centers would stay the same as in FY2007.
1 Based on: U.S. Administration on Aging, Operating Plan for FY2007 (2007); P.L.110-5,
Revised Continuing Appropriations Resolution, 2007 (121 Stat. 8, 29, 33); and email
correspondence between the author and Blake Hanlon, Congressional Affairs, Department
of Labor, April 9, 2007, and Steve Hagy, Director, Office of Budget & Finance,
Administration on Aging, April 4, 2007.
2 U.S. Department of Health and Human Services, Fiscal Year 2008: Administration on
Aging: Justification of Estimates for Appropriations Committees, p. 28, at
[http://www.aoa.gov/ABOUT/legbudg/current_budg/docs/AoA%20FY%202008%20CJ%
20Final.pdf], visited June 19, 2007.
3 U.S. Office of Management and Budget, Major Savings and Reforms in the President’s
2008 Budget, p. 48, at [http://www.whitehouse.gov/omb/budget/fy2008/pdf/savings.pdf],
visited June 19, 2007.
CRS-3
Title IV. Activities for Health, Independence and Longevity
Title IV of the OAA authorizes the Assistant Secretary for Aging to award
funds for training, research, and demonstration projects in the field of aging. In recent
years, AoA has funded a number of national efforts that support the work of state and
area agencies on aging, including the National Long-Term Care Ombudsman
Resource Center, the National Center on Elder Abuse, and other national resource
centers that focus on legal assistance, retirement needs of minority populations, and
the vulnerable elderly. Other recent projects have included funding for Aging and
Disability Resource Centers (ADRCs). The ADRC program provides competitive
grants to states to help them develop and implement “one stop shop” access points
to information on long-term care support options. The program is currently operating
in 43 states. Other activities have included outreach to help Medicare beneficiaries
understand their benefits under the Medicare Modernization Act (MMA) (conducted
in cooperation with the Centers for Medicare and Medicaid Services).
For Title IV the FY2008 budget request is $35.5 million, an increase of 47%
over the FY2007 level. About four-fifths ($28 million) of Title IV funds would be
used for Choices for Independence demonstration programs. The balance of the
request would be used to maintain support for ongoing activities, including national
resources centers that provide technical assistance to aging service providers,
intergenerational activities, and program evaluation.
According to the Budget Justification, the Choices for Independence initiative
“targets people while they are still healthy” to help them plan ahead for long-term
care and “to conserve and extend their personal resources so as to maintain their
independence in the community.” Choices for Independence would have three
components. First, the “Consumer Empowerment” component would provide
information to older people and their families that is “designed to increase the use of
private financing options” for long-term care, such as long-term care insurance and
home equity conversions, as well as other information on home modification,
assistive technology, and options for living arrangements. Second, the “Healthy
Lifestyle Choices” component would build on the existing Title IV evidence-based
disease prevention initiative to help seniors change behavior to reduce risk of disease
and disability. Funds would support activities in areas such as fall prevention,
exercise, and nutrition. Third, the “Community Living Incentives” component would
give states a “flexible funding source” they could use to help the elderly avoid
institutionalization. This component would provide financial incentives to
low-to-moderate-income individuals who are at risk of nursing home placement but
who are not yet eligible for Medicaid. ADRCs would help older people and their
families develop a plan to meet their long-term care needs.
The Choices for Independence demonstration would require a 25% state match
for all three components, and states would have to meet certain performance
standards as a condition of participation.4
4 U.S. Department of Health and Human Services, Fiscal Year 2008: Administration on
Aging: Justification of Estimates for Appropriations Committees, pp. 49-53.
CRS-4
Title V. Community Services Senior Opportunities Act
Title V has as its purpose the promotion of useful part-time opportunities in
community service activities for unemployed low-income persons who are 55 years
or older and who have poor employment prospects. For FY2007, the community
service employment program represents more than a quarter of the OAA’s funds
($484 million out of $1.855 billion). Enrollees work part-time in a variety of
community service activities. The program provided for 60,050 jobs, serving about
92,300 persons, in FY2006.5 The annual cost per job slot in FY2006 was $7,153.
Enrollees are paid no less than the highest of the federal minimum wage, the
state or local minimum wage, or the prevailing wage paid by the same employer for
similar public occupations. In addition to wages, enrollees receive physical
examinations, personal and job-related counseling, and transportation for
employment purposes, under certain circumstances.
The FY2007 continuing resolution (P.L. 110-5) adds $51.3 million in additional
funds over the FY2006 funding level to provide for an increase in the minimum wage
to $5.85/hour for Title V participants in FY2007 (the program year for FY2007 funds
begins on July 1, 2007).6
The Administration’s FY2008 budget requests $350 million, a reduction of 28%
from the FY2007 level. According to the Administration, the proposal would fund
approximately 39,260 positions serving 59,000 participants in 2008.7 A recent
DOL/Office of Management and Budget program assessment rated the program
ineffective, “largely due to inadequate competition in the grants process, lack of data
on program performance and impact, and duplication of other Federal programs.”8
The DoL Budget Justification indicates that many employers are finding that the
5 U.S. Department of Labor, FY2008 Performance Budget, Employment and Training
Administration, Community Service Employment for Older Americans, p. CSEOA-13, at
[http://www.dol.gov/dol/budget/2008/PDF/CBJ-2008-V1-05.pdf], visited June 19, 2007.
6 The federal minimum wage was increased by § 8102 of the U.S. Troop Readiness,
Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act (P.L. 110-28,
enacted May 25, 2007). The federal minimum wage will be raised to $5.85 an hour,
beginning 60 days after the law’s enactment.
7 U.S. Department of Labor, FY2008 Performance Budget, Employment and Training
Administration, Community Service Employment for Older Americans, p. CSEOA-13. The
document states that the numbers of positions, participants, and cost per participant in
FY2008 account for costs of the Fair Minimum Wage Act of 2007 (H.R. 2). The minimum
wage increase proposed in H.R. 2 (§ 101 of the Senate-passed version and § 2 of the House-
passed version) subsequently became law as § 8102 of P.L.110-28. However H.R. 2’s
proposals regarding the applicability of the minimum wage to the Commonwealth of the
Northern Mariana Islands (§ 102 of the Senate-passed version and § 3 of the House-passed
version) were different from § 8103 of P.L.110-28, regarding the applicability of the
minimum wage to American Samoa and the Commonwealth of the Northern Mariana
Islands.
8 U.S. Department of Labor, FY2008 Performance Budget, Employment and Training
Administration, Community Service Employment for Older Americans, p. CSEOA-10.
CRS-5
demand for skilled workers exceeds the available labor supply and they are
increasingly eager to hire older workers. Therefore, in FY2008 the Administration
indicates that the workforce investment system will play a stronger role in placing
older workers in unsubsidized employment, rather than have the Title V program
place older workers in subsidized employment.
The Administration notes that the ultimate goal of the program is to move
participants into unsubsidized employment. However, the 2006 Older Americans
Act reauthorization amendments (P.L. 109-365) maintained the program focus on
employing older people in community service jobs and reemphasized the community
service aspects of the program. While the program is to move participants into
unsubsidized employment, the amendments recognized that many older people who
have special needs may need to remain in subsidized employment and that the
program supplements the income for some workers who cannot find jobs in the
private economy.9
Title VII. Vulnerable Elder Rights Protection Activities
Title VII authorizes the long-term care ombudsman program as well as elder
abuse, neglect and exploitation prevention programs. Most Title VII funding is
directed at the long-term care ombudsman program. Of its $20.2 million funding in
FY2007, almost three-quarters was for ombudsman activities. The purpose of the
program is to investigate and resolve complaints of residents of nursing facilities,
board and care facilities, and other adult care homes. The Administration’s FY2008
budget request for Title VII is $19.2 million, a reduction of 5% from the FY2007
level of $20.2 million.
Alzheimer’s Disease Demonstration Grants
The Administration’s FY2008 budget request would eliminate Alzheimer’s
Disease Demonstration Grant funding, which was funded at $11.7 million in
FY2007. This program is administered by AoA but it is not part of the Older
Americans Act. The Administration argues that “[t]he lessons learned and the
models developed through these demonstrations are ready to be incorporated into
ongoing service programs” and that “[t]ax dollars can better be used by focusing on
disseminating information on successful, replicable, and innovative Alzheimer’s care
programs.”10
9 For further information, see CRS Report RL31336, Older Americans Act: Programs,
Funding, and 2006 Reauthorization, by Carol O’Shaughnessy and Angela Napili.
10 U.S. Office of Management and Budget, Major Savings and Reforms in the President’s
2008 Budget, p. 47. U.S. Department of Health and Human Services, Fiscal Year 2008:
Administration on Aging: Justification of Estimates for Appropriations Committees, p. 62.
CRS-6
Table 1. The Older Americans Act, Alzheimer’s Demonstration Grants,
and White House Conference on Aging Funding, FY2000-FY2007, and FY2008 Budget Request
($ in millions)
OAA Programs, Alzheimer’s
Demonstration Grants, and
FY2008
the White House Conference on Aging
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005a FY2006b FY2007
c
request
TITLE II: Administration on Aging
$16.461
$17.232
$20.501
$20.233
$30.618
$31.567
$30.812
$31.518
$31.829
Program administration
(16.461)
(17.232)
18.122
17.869
17.324
18.301
17.688
18.385
18.696
Aging network support activities
2.379d
2.364d
13.294e
13.266e
13.124e
13.133e
13.133e
TITLE III: Grants for State and
Community Programs on Aging
987.617
1,151.285
1,230.293
1,240.891
1,243.059
1,250.192
1,242.378
1,263.232
1,216.291
Supportive services and centers
310.082
325.082
357.000 355.673 353.889
354.136
350.354
350.595
350.595
Family caregivers
125.000
136.000f
149.025f
152.738f
155.744f
156.060f
156.167f
154.187f
Disease prevention/health promotion
16.123
21.123
21.123
21.919
21.970
21.616
21.385
21.400
0
Nutrition services
661.412
680.080
716.170
714.274
714.462
718.696
714.579
735.070
711.509
— Congregate meals
(374.336)
(378.412)
(390.000)
(384.592)
(386.353)
(387.274)
(385.054)
(398.919)g
(383.401)
— Home-delivered meals
(146.970)
(152.000)
(176.500)
(180.985)
(179.917)
(182.826)
(181.781)
(188.305)g
(180.998)
— Nutrition services incentive grants
(140.000)
(149.668)h
(149.670)
(148.697)i
(148.192)
(148.596)
(147.744)
(147.846)
(147.110)
In-home services for the frail elderly
0
j
j
j
j
j
j
j
j
TITLE IV: Activities for Health,
Independence, and Longevity
31.162
37.678
38.280
40.258
33.509k
43.286
24.578
24.058
35.485
TITLE V: Community Service Senior
Opportunities Act
440.200
440.200
445.100
442.306
438.650
436.678
432.311
483.611g
350.000
TITLE VI: Grants to Native Americans
18.457
23.457
31.229
33.704
32.771
32.702
32.353
32.375
32.375
Supportive and nutrition services
25.729
27.495
26.453
26.398
26.116
26.134
26.134
Native American caregivers
5.500
6.209
6.318
6.304
6.237
6.241
6.241
TITLE VII: Vulnerable Elder Rights
Protection Activities
13.181
14.181
17.681
18.559
19.444
19.288
20.142
20.156
19.166
Long-term care ombudsman program
l
l
l
l
14.276
14.162
15.000
15.010
14.020
l
Elder abuse prevention
l
l
l
5.168
5.126
5.142
5.146
5.146
Legal assistance
0
0
0
0
0
0
0
0
0
Native Americans elder rights program
0
0
0
0
0
0
0
0
0
TOTAL Older Americans Act Programs
$1,507.078
$1,684.033
$1,783.084
$1,771.057
$1,798.051
$1,813.713 $1,782.574
$1,854.950
$1,685.146
CRS-7
OAA Programs, Alzheimer’s
Demonstration Grants, and
FY2008
the White House Conference on Aging
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005a FY2006b FY2007
c
request
Alzheimer’s Demonstration Grantsm
$5.970
$8.962
$11.500
$13.412
$11.883
$11.786
$11.660
$11.668
0
White House Conference on Aging
0
0
0
0
$2.814n
$4.520n
0n
0
0
Sources: Appropriations legislation, various years; Administration on Aging FY2007 Justification of Estimates for Appropriations Committees, FY2008 Budget documents.
a. FY2005 amounts reflect the 0.80% across-the-board reduction required by P.L. 108-447, Division J, Section 122. The Administration was given discretion on how to distribute
the reduction among individual accounts and line items.
b. FY2006 amounts reflect two rescissions: (1) There was an 1% across-the-board reduction required by P.L. 109-148, Division B, Title III, Chapter 8, Section 3801. (2) On June
14, 2006, the HHS Secretary notified the Appropriations Committees that he would transfer funds among HHS programs to finance activities related to the Medicare drug benefit
call center. This transfer was a 0.069% across-the-board reduction and it reduced Administration on Aging funds by $0.9 million. It was authorized by Section 208 of P.L. 109-
149.
c. FY2007 figures in table are based on the Administration on Aging, Operating Plan for FY2007; Revised Continuing Appropriations Resolution, 2007 (P.L.110-5, 121 Stat. 8, 29,
33); and email correspondence between the author and Blake Hanlon, Congressional Affairs, Department of Labor, April 9, 2007, and Steve Hagy, Director, Office of Budget
& Finance, Administration on Aging, April 4, 2007. P.L.110-5 specified dollar amounts for some, but not all, programs. Agencies had some flexibility to determine program
amounts based on FY2006 appropriations.
d. Includes $1.2 million for the Eldercare Locator, and $1.2 million for Pension Counseling and Information Program.
e. Includes funds for activities previously funded under Title IV: Senior Medicare Patrols, National Long-Term Care Ombudsman Resource Center, and National Center on Elder Abuse.
Also includes funds for the Eldercare Locator, and Pension Counseling and Information Program.
f. Funding for Native American family caregiving is shown in Title VI.
g. Funding level was specified in P.L.110-5, Revised Continuing Appropriations Resolution, 2007.
h. Congress originally appropriated $150 million, then rescinded $332,000 (0.22%) pursuant to Section 1(a)(4) of P.L. 106-554.
i. Congress transferred the program, previously funded by USDA, to AoA in FY2003.
j. Not authorized. P.L. 106-501 eliminated separate authority for in-home services for the frail elderly, but such activities may still be funded under the Title III supportive services
and centers program.
k. See footnote e. Funds shown are reduced from FY2003 level due to transfer of some funds to Title II.
l. Separate amounts not specified.
m. The FY1999 Omnibus Consolidated Appropriations Act (P.L. 105-277) transferred the administration of the program from the Health Resources and Services
Administration to AoA. The program is authorized under Sections 398 to 398B of the Public Health Service Act.
n. P.L. 100-75 required the President to convene the conference no later than Dec. 31, 2005. It was held December 11-14, 2005. See [http://www.whcoa.gov]. FY2006 obligations
for the White House Conference on Aging were funded by carryover balances of prior-year appropriations.


CRS-8
Figure 1. Older Americans Act, FY2007 Funding
($1.855 billion)
Source: Prepared by CRS based on FY2007 Appropriations Legislation and the Administration on Aging, Operating Plan for 2007.
Figure 2. Funding for Older Americans Act Programs,
FY2000-FY2007, and FY2008 Budget Request
Source: Prepared by CRS based on Appropriations Legislation and the Administration on Aging, Operating Plan for 2007.