Frequently Asked Questions
1. What is the Intrastate Funding Formula (IFF)?
The IFF is a mathematical formula the department uses to distribute federal funding the AAA network for services delivered by each AAA. As the State Unit on Aging, the Pennsylvania Department of Aging (PDA) is required by HHS to have a formula for the distribution of federal funds to the 52 AAAs in the commonwealth.
The OAA provides specific guidance on factors that must be included in the IFF:
(i) the geographical distribution of older individuals in the State; and
(ii) the distribution among planning and service areas of older individuals with greatest economic need and older individuals with greatest social need, with particular attention to low-income minority older individuals.
The OAA does not dictate the weight of these factors, but does specify preferences to be considered in the IFF:
Provide assurance that preference will be given to providing services to older individuals with greatest economic need and older individuals with greatest social need (with particular attention to low-income older individuals, including low-income minority older individuals, older individuals with limited English proficiency, and older individuals residing in rural areas), and include proposed methods of carrying out these preferences in the state plan
2. Why is the IFF being revised now?
The Intrastate Funding Formula (IFF) is used to distribute federal funds from the Older Americans Act (OAA) to local communities across Pennsylvania. These funds help provide essential services for older adults. The Intrastate Funding Formula is a requirement part of the State Plan on Aging and overseen by the Department of Health and Human Services (HHS). The State Plan and IFF were previously approved by The Administration for Community Living (ACL), which was dissolved as part of ongoing HHS restructuring in March 2025.
As the Department of Aging developed the 2024–2028 State Plan, we heard directly from stakeholders about the importance of updating the IFF. With changing demographics, new leadership, and a call for greater transparency, the Department made the decision to revise the formula to better reflect the needs of Pennsylvania’s growing aging population.
This update also ensures Pennsylvania remains in full compliance with the OAA federal final rule, which outlines specific requirements for how states must develop and implement their Intrastate Funding Formulas. The updated IFF reflects these guidelines by prioritizing equity, data-informed decision-making, and community input.
Going forward, the Department of Aging is committed to reviewing and updating the Intrastate Funding Formula every four years, aligning with updates to the State Plan. This approach follows the recommendation of the Advisory Committee that supported this year’s update and reflects our ongoing promise to ensure equitable funding for services that matter most to older Pennsylvanians.
3. What and who was involved with this update process?
Transparency was at the focus of PDA’s process to update the IFF.
Under Title III of the OAA, PDA is required to develop a formula that utilizes the best available data to understand the demographics of older adults living in Pennsylvania. The goal is to ensure that funding is distributed where it’s most needed, with a particular focus to support individuals with the greatest economic or social needs, such as those living in poverty, facing language barriers, or experiencing social isolation.
To meet these requirements and reflect Pennsylvania’s growing aging population, PDA led a comprehensive, transparent, and collaborative update process beginning in January 2024. This work was guided by an IFF Advisory Committee made up of five Area Agency on Aging Directors from geographically representative parts of the state, along with representatives from organizations such as the Pennsylvania Association of Area Agencies on Aging (P4A), the Pennsylvania Council on Aging (PCoA) , the Pennsylvania Association of Senior Centers (PASC), and the County Commissioners Association of Pennsylvania (CCAP). PDA staff from policy, finance, and program areas also participated in the process.
The committee:
Convened meetings during the course of an entire year to evaluate the existing formula and identify areas for improvement.
Developed guiding principles to shape the updated formula with equity and need in mind.
Identified and recommended new factors that better capture the realities faced by older Pennsylvanians, including language access, disability, and social vulnerability.
Partnered with the University of Pittsburgh School of Public Health for expert support and data analysis.
Received technical assistance from the Administration for Community Living (ACL) to ensure the use of accurate and reliable data sources.
Ensured alignment with OAA requirements and Pennsylvania’s diverse demographic profile.
As part of PDA’s commitment to transparency, the draft formula notice was provided in the PA Bulletin, and the IFF was published for a 30-day comment period on May 10, 2025.
The final IFF, which goes into effect on October 1, 2025, will reflect public input, the committee’s recommendations, and federal requirements. It includes new data factors and updated weights to ensure resources are directed to communities with the greatest need.
This process demonstrates PDA’s ongoing commitment to equity, accountability, and transparency in how services for older Pennsylvanians are planned and funded.
4. What data is being used as the "most current census data"?
In the revised IFF, the population data used was obtained directly from ACL through their partnership with the U.S. Census, the American Community Survey, US Census Bureau, Center for Rural PA, and the Centers for Disease Control.
American Community Survey Data provided by the Administration for Community Living (ACS – ACL) - The American Community Survey is completed at regular intervals by the United States Census Bureau.
U.S. Census Bureau Vintage Population Estimates (Vintage, Year) – The United States Census Bureau provides Vintage Population estimates on a yearly basis.
American Community Survey (ACS) - The American Community Survey is completed at regular intervals by the United States Census Bureau
Center for Rural PA - The Center for Rural PA is a bipartisan legislative agency to maximize resources and strategies that serve Pennsylvania’s nearly 3.4 million rural residents. The Center for Rural PA works with data sources from the Penn State Data Center and the U.S. Census Bureau.
Centers for Disease Control (CDC) - The Centers for Disease Control and Prevention and Agency for Toxic Substances and Disease Registry Social Vulnerability Index (hereafter, CDC/ATSDR SVI or SVI) is a place-based index, database, and mapping application designed to identify and quantify communities experiencing social vulnerability
5. What is New in the Intrastate Funding Formula—and Why It Matters
While the financial impact of the updated Intrastate Funding Formula (IFF) remains largely consistent with the 2020–2024 version, the Department of Aging recognized the importance of making meaningful updates. These changes were driven by our responsibility to comply with the updated federal final rule, our commitment to transparency, and our goal of better meeting the needs of Pennsylvania’s growing and changing older adult population.
The revised IFF builds on the foundation of the previous formula by continuing to include key population indicators such as older adults aged 60 and over, those living in rural areas, individuals from underrepresented racial or ethnic groups, and older adults living alone or in poverty. However, the 2024–2028 version expands this approach by introducing new data factors that more fully capture the diversity and vulnerability of Pennsylvania’s aging population. These include older adults whose primary language is not English, individuals living at or below 150% and 100% of the Federal Poverty Level (FPL), those with self-care limitations (disabilities), and a community-level assessment using the Centers for Disease Control and Prevention’s Social Vulnerability Index (SVI). The advisory committee wanted to especially highlight older adults living at or below 150% of the FPL as this describes the average area agency on aging consumer.
The inclusion of these new data points was strongly recommended by the Advisory Committee convened to guide the IFF update process. These considerations are not only emphasized in the federal final rule, but they also represent critical aspects of the population served every day by Pennsylvania’s Area Agencies on Aging.
By incorporating these factors, the Department of Aging is taking a more inclusive and equitable approach to how services are funded, ensuring that resources are directed to the communities that need them most and that every older adult in Pennsylvania has a fair opportunity to age with dignity and support.
6. How often will the funding be adjusted in the future?
The Advisory Committee that helped develop this updated version of the IFF recommended and voted to establish a new advisory committee every four years. This aligns with the State Plan on Aging update cycle and ensures regular, consistent reviews of the latest data. The Advisory Committee will be convened by the Department and always include stakeholders including at least 5 Area Agency on Aging Directors from geographically diverse areas of the state.
By reviewing the IFF on a set schedule, Pennsylvania can keep funding allocations up to date while minimizing abrupt or significant changes that could disrupt services. This approach helps Area Agencies on Aging (AAAs) adjust gradually to demographic shifts and prevents the challenges of delayed updates from compounding over time.
7. Will service cuts be necessary and how will changes at the federal level impact the IFF?
Changes at the federal level, including the recent restructuring and elimination of the ACL, have reinforced the importance of aligning Pennsylvania’s IFF with updated federal guidance. While the core principles of the OAA remain in place, the final federal rule now places greater emphasis on equity, transparency, and ensuring services reach those with the greatest economic and social needs.
The Department of Aging updated the IFF to reflect these priorities in full compliance with federal requirements. We are committed to continuing this alignment so that Pennsylvania remains eligible for federal funding and resources are distributed fairly and effectively to older adults across the Commonwealth.
Changes to funding at the federal level for State Units on Aging would impact the total distribution of funds to the AAAs. If funding changes occur, the Department will work with the AAAs to provide guidance on minimum required services.
8. How will these changes be implemented?
The department has proposed a new mitigation strategy that aligns with the timeline of the State Plan. This will ensure that the needs of the changing demographics of the PA older adult population are better met within the timeline of the state plan cycle.
To mitigate the effects of major funding shifts created by this transition from the current funding formula to a new formula, PDA is electing to phase-in the implementation of the new formula over the remaining years of the current four-year state plan. PDA has elected to exercise this option to allow for this transition to occur gradually and minimize impacts to older adults. As a result, a comparison will be made in terms of percent of total funds allocated by each AAA between state fiscal year 2024-25 and the new IFF results. The difference between the two percents of total allocation results will be incrementally implemented in three equal installments effective 10/1/2025, 7/1/2026, and 7/1/2027.