The distribution of Federal outlays within the United States in fiscal year 1970 is summarized in this report. Selected Federal programs (242 programs comprising 74.4% of all Federal outlays) were divided into 4 program categories: human resource development; community development; agriculture and natural resources, and Defense, the National Aeronautical and Space Administration (NASA), and the Atomic Energy Commission (AEC). The counties affected by these programs were divided into 6 categories on the basis of population density and the percentage of urban population. Major conclusions of this initial study were that (1) nonmetropolitan residents do not share proportionately in the distribution of outlays of many Federal programs; (2) Federal outlays for Defense, NASA, and AEC far overshadow outlays for the other program categories and heavily favor the larger, higher income urban areas; (3) programs narrow in scope and limited in objective are failing to meet this country's development needs effectively; and (4) Federal outlays for agriculture and natural resources tend to be concentrated in nonmetropolitan counties with pronounced population declines but comparatively high per-capita incomes.