This report was prepared in accordance with the Consolidated Federal Funds Report Ammendments of 1986 (P.L. 99-547), which requires "The Director of the Office of Management and Budget to prepare an annual report consolidating the available data on the geographic distribution of Federal funds..." The report reflects Federal Government expenditures by State and territory.

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 were available by State and territory. For fiscal year 1989, the statistics compiled amount to $931.9 billion.

The data presented in this report on grants, salaries and wages, direct payments for individuals, procurement, and other direct Federal expenditures 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 territory, or that were not available. Such amounts include 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), and foreign outlays within each of the catagories in tables 2 through 6.