While this funding toolkit focuses primarily on discretionary Federal grants, there is another category of Federal funds courts should be knowledgeable about. Many opportunities to financially support courts flow from states’ powers to administer what are known as block and formula (AKA pass-through) funds where the federally-established amounts and spending parameters give states flexibility to tailor spending to local priorities and can allow state spending on justice-related functions and activities. Each of the federal funding sources has its own authorizing statute, regulations, formulas, sub-regulatory guidance and degrees of flexibility. One of the key differences between these pass-through or formula funds and discretionary funds is to whom the courts apply: formula funds applications are made to the state and/or local government agencies while courts apply for discretionary grants directly to the administering Federal agency and compete for those funds with national applicants.