Which of the following defines the method for determining recipients and amounts of a Formula grant?

The defining characteristic of a Formula grant is that it operates based on a predetermined formula established in law or regulation. This formula outlines specific criteria that determine both who the recipients will be and the amounts of funding they will receive. It removes subjectivity from the allocation process by ensuring that each recipient is evaluated according to the set criteria, which often consider factors like population size, income level, or other demographic variables relevant to the grant's purpose. This systematic approach allows for equitable distribution of funds based on measurable data rather than subjective evaluations or competitive proposals.

In contrast, the other options describe different allocation methods. A competitive review process involves evaluating proposals based on merit, which is not a feature of Formula grants. Discretionary allocations imply that a panel or authority has the ability to choose recipients based on judgment, rather than a fixed formula. An application process that is simple does not speak to the allocation method itself but rather to how easy it is for applicants to apply. Therefore, the most accurate definition of a Formula grant allocation method is indeed the one that refers to a formula found in law or regulation.