Which grants are considered more stable and predictable?

Formula grants are considered more stable and predictable because they are allocated based on a predetermined formula that typically considers specific factors such as population, income levels, or needs of the community. This structured approach ensures that funding amounts are consistent and can be anticipated by the recipient governments or organizations, making financial planning more reliable.

In contrast, other types of grants, such as project grants and competitive grants, may vary significantly from year to year and are often dependent on specific applications or proposals that must be evaluated against others for funding. This can create uncertainty regarding the availability and amount of funding, as they are not guaranteed and are subject to the approval process. Discretionary grants also lack the predictability of formula grants because they rely on the priorities set by grant-making agencies each funding cycle, which can fluctuate based on various factors, further diminishing their stability.