This report presents Federal Government expenditures by State and U.S. Outlying Area. Coverage includes Federal Government expenditures for grants to state and local governments, salaries and wages, procurement, direct payments for individuals, and other programs for which data are available by state and outlying area. For fiscal year 1997 (October 1, 1996 to September 30, 1997), the statistics compiled cover $1.4 trillion. The data are shown by program or Federal agency whenever possible.

Federal Government expenditure amounts not included in this report reflect data that could not be distributed by state and outlying area, or that were not available. Examples are:

• Net interest on the Federal Government debt.
• International payments and foreign aid.
• Current operational expenses not included under salaries or procurement (Tables 3 and 5).
• Expenditures for selected agencies (such as the Central Intelligence Agency and National Security Agency).
• Foreign outlays within each of the categories in Tables 2 through 6.