Abstract: A categorical or block grant is aFederally-funded, state-administered program, dealing with asingle activity or category of recipients, and operatingunder a set of established rules. The feasibility of usingthis type of grant as an alternative to the current fundingof the Food Stamp Program (FSP) is examined, as pressuresmount for restraining the growth of Federal expenditures forpublic-assistance programs. Use of such a grant for thispurpose will require a suitable formula to assure that fundsare equitably distributed. A review of 5 newly developeddistribution formulas, as well as their effects on programbenefits and on recipients is provided. The objectives forthe conversion to a categorical grant and the applicationcosts associated with each type of formula will guide theselection of the most appropriate formula. However, someStates would receive less funding under any of the proposedformulas. (wz)