State and Federal prison systems are spending $3,884,250,000 for 78,872 new beds. This compares to 1986 costs of nearly $3 billion for 59,000 new beds. Of 63 responding agencies (47 States, the Federal Bureau of Prisons, 4 territories and Army and Navy systems), 14 reported having no construction planned. The over $1 billion being spent by California for 14,386 new prison beds accounts for more than one quarter of the total United States costs. States are building medium and mixed security facilities most often, and minimum security facilities least often. Building costs ranged from $525,000 for a 75-bed minimum security facility in Missouri to 164.6 million for a medium security 3,034-bed prison in California. Most of the new construction appears to be funded by legislative appropriation: 26 agencies received legislative appropriations, 20 reported a bond issue, and 13 received funding from both sources. Other sources included lease purchase arrangements, special state funds, and Federal funds. Community reactions to prison construction generally were supportive. Public hearings, education, or site modification were used to increase community support. 2 figures and a table of prison construction by State.