Twenty-three months after the law's enactment, the States had drawn down about 58 percent of the fiscal year 1987 formula grant funds. This included 38 percent of the funds for law enforcement, 73 percent of the funds for treatment, and 70 percent of the funds for education. Drawdowns of fiscal year 1988 funds as of September 30, 1988 were less than 5 percent. New York State had drawn down 44 percent of its fiscal year 1987 awards by September 30, 1988. State and local factors rather than Federal factors affected the time involved in drawing down the funds. These factors included the differing interpretations by State and Federal agencies on the use of education funds and the time required for legislative approval of funds. The latter factor will continue to consume time in carrying out grant programs. However, drawdowns tend to underestimate program activity because program activities may be well under way before a drawdown is requested. Figures and tables.