In the Federal prison system, the deficit in bedspace will be 10,853 in 1990, producing an overcrowding of 40 percent, and in the District of Columbia, overcrowding rates will remain constant at 10.4 percent from fiscal years 1987 through 1990. State prisons and correctional institutions will have a prison bedspace deficit of 108,324 and an overcrowding rate of 25.8 percent in 1990. Capital costs to reduce overcrowding to 1.4 percent in the Federal Prison System by fiscal year 1988 are projected at $310 million in 1983 constant dollars. The District of Columbia Department of Corrections projects a capital cost of $59.9 million to house projected 1988 inmate populations. The housing of projected 1990 inmate populations in State correctional facilities would require estimated capital costs of $4.7 billion. Appended methodology and tabular data.