In brief, the appropriation for cooperative extension is shared between the states based on the following formula. First, the historic amount that has been allocated for "special needs" programs is set aside.[1] Next, 4% is set aside for USDA administrative costs. The remainder is allocated:
20% shared by all States in equal proportions;
40% shared in the proportion that the rural population of each bears to the total rural population of the several States as determined by the census;
40% shared in the proportion that the farm population of each bears to the total farm population of the several States as determined by the census.[2]
Except for the "1994 Land-grant colleges" for native americans, each state must match its Federal cooperative extension funds.[3]
In addition, an amount no less than 6% of the total Smith-Lever Act approriation is appropriated for the extension programs of the "1890 Land-grant colleges" (which are historically black colleges.) These funds are also shared between the 1890 colleges by the 20%-40%-40% formula, with Alabama A&M and Tuskegee University treated as though they were in different states.