This report summarizes the distribution of Federal dollars in 1979 and assesses recent trends. Federal per capita funding remains unevenly divided among the regions; however, the advantage of the West and South may be moderating somewhat. The spread of some Federal programs into more rural counties may have helped reduce the nonmetro area funding deficit. Major differences remain in the way specific categories of programs are allocated. Nonmetro areas are behind urban areas in defense funding, but lead in community resources and agricultural programs. Poorer nonmetro counties are especially reliant on income security programs.