This rule proposes to revise both the food and the nutrition services and administration (NSA) funding formulas to improve the effectiveness of WIC funds distribution now that WIC is in a relatively stable funding environment. The revised food funding formula would help to ensure food funds are allocated to state agencies that can utilize the funds to maintain current participation as well as to direct funds, as available, to state agencies that are serving a lesser proportion of their WIC eligible population than other state agencies. The revised NSA funding formula would simplify the funding formula by deleting obsolete components and updating existing components to more equitably distribute funds among state agencies.