The GAO specifically examined the funding of high priority missions, equipment purchased to support these missions, and whether the Department of Defense (DOD) measured the impact of National Guard activities on counterdrug efforts of law enforcement agencies. It was found that funds were allocated to activities DOD identified as high priority. However, DOD may have been better able to make fiscal year 1991 allocation decisions if States had prioritized counterdrug mission funding requirements in their State plans. The National Guard focused on States with the most pressing counterdrug interdiction needs. States submitted requests for funds totaling $41.9 million, and DOD approved $35.5 million. Because the $35.5 million was provided to the National Guard for transfer to States late in the fiscal year, States were unable to spend $12.4 million which was returned to the U.S. Treasury. In fiscal year 1990, DOD initially allocated $67.7 million of $83.1 million requested by States. The total amount actually provided was $66.8 million. As of January 1991, the National Guard had committed $17.1 million for ground-based radar equipment, $7.1 million for thermal imaging radars, and $4.3 million for communications equipment. The impact of the National Guard's counterdrug activities was not assessed. 4 tables and 2 figures