Formula Funding to States: Dollars that will flow to Tennessee state agencies via a statutorily established formula. Under these circumstances, the Tennessee state agency that receives funding through the Act from the federal government will in turn allocate dollars to eligible local entities.

Direct funding to local governments: Funding that will flow directly to eligible municipal governments or school districts.

Competitive Grants: Dollars that will be distributed via a competitive grant process that will be administered by the federal department or agency that is charged under the Act with allocating the funding.

Discretionary Grants: : Some of the programs in the Act will be distributed at the discretion of the Secretary of the particular department or agency that receives the funding. The federal department or agency will need to promulgate regulations defining the criteria by which the funds will be distributed. These funds may ultimately be distributed a competitive process, but that information has not yet been determined.