THE NATIONAL SUPPORTED WORK DEMONSTRATION WAS CREATED IN 1975 TO ASSIST CERTAIN SEGMENTS OF THE POPULATION IN OBTAINING EMPLOYMENT. THE FOUR TARGET GROUPS ARE EX-OFFENDERS, EX-ADDICTS, HIGH SCHOOL DROPOUTS WHO ARE USUALLY ALSO YOUNG OFFENDERS, AND LONG-TIME FEMALE RECIPIENTS OF AFDC (AID TO FAMILIES WITH DEPENDENT CHILDREN) PAYMENTS. PEER SUPPORT, GRADUATED STRESS, AND CLOSE SUPERVISION CHARACTERIZE THE PROGRAM AND DIFFERENTIATE IT FROM OTHER JOB PROGRAMS. FIVE SITES ARE STUDIES IN DETAIL: CHICAGO, HARTFORD, THE STATE OF MASSACHUSETTS, OAKLAND, AND FOND DU LAC, WIS. THE REMAINING EIGHT SITES, ATLANTA, JERSEY CITY, NEWARK, PHILADELPHIA, ST. LOUIS, SAN FRANCISCO, AND PARTS OF THE STATES OF WASHINGTON AND WEST VIRGINIA, ARE BRIEFLY SUMMARIZED. MOST OF THE LOCAL FUNDS WERE OBTAINED FROM THE CETA (COMPREHENSIVE EMPLOYMENT TRAINING ACT) SYSTEM. FACTORS INVOLVED IN GETTING FUNDS WERE (1) THE FINANCIAL CONNECTIONS MADE DURING THE DEMONSTRATION'S PLANNING PERIOD, (2) PROGRAM SPONSORS WITH ACCESS TO FUNDS, (3) PERSONAL CONNECTIONS ('KNOWING SOMEONE'), AND (4) THE FORMAL PROCESS OF SUBMITTING A PROPOSAL AND HAVING IT EVALUATED ON ITS MERITS ALONE. OBSERVATIONS ABOUT FUNDING SUPPORTED WORK PROGRAMS IN THE FUTURE INCLUDE THESE REMARKS: (1) ALL PROGRAM MANAGERS BELIEVE THAT RAISING GRANTS IS NECESSARY AND PROPER WITH FUTURE COMPETITION EXPECTED TO BE INTENSE; (2) THE MAINSTAY OF LOCAL FINANCING HAS BEEN CETA, AND PROBABLY WILL REMAIN SO; (3) IT IS UNLIKELY THAT SUPPORTED WORK PROGRAMS CAN GET SUBSTANTIALLY MORE CETA FUNDS FROM THE SAME PRIME SPONSORS; (4) WHATEVER THE LEVEL OF CETA FUNDS RAISED, STABILITY HAS BEEN AND WILL CONTINUE TO BE A MAJOR PROBLEM; AND (5) CETA FUNDS GENERALLY ONLY PAY REIMBURSEMENT FOR WAGES PAID TO WORKERS AND NOT FOR ANY ADMINISTRATIVE COSTS, AN UNDESIRABLE SITUATION. FINALLY, THE REPORT CONCLUDES THAT, IF THE DEMONSTRATION PROJECT IS TO BE IMPLEMENTED NATIONALLY, THE PROGRAM'S DESIGNS AND IDEAS MUST BE ACCOMPANIED BY STABLE MONEY. TABLES AND REFERENCES ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED--PRG)