Data collection for the project was done in 1979 and 1980 and consisted of a national survey of State agencies which provided program profiles and a closer examination of selected case studies. In addition to providing a description of Federal and State grants-in-aid to local delinquency prevention and control services, material is also presented on developing a subsidy design for lobbying purposes. A general, philosophical section discusses the reasons for employing intergovernmental fund transfers. The findings of the national survey of selected State agencies are summarized and the number and types of State subsidies are delineated. The summary of case studies offers synopses of representative projects, such as drug abuse grants, youth employment services subsidies, alternative education programs, youth diversion project subsidies, alcohol and drug school education support, and detention services subsidies. These case studies illustrate State subsidies by the States of Alaska, Florida, Iowa, Maryland, Michigan, New York, North Carolina, Pennsylvania, South Carolina, and Utah. The Federal complement of grant-in-aid programs to local delinquency prevention and control services is presented in terms of historical background on grants-in-aid for child welfare, mental health, education, employment, and juvenile justice and crime control. Discussion on the design of subsidies covers the types of allocation mechanisms which best meet specific objectives and the requirements that are likely to be included in legislation or administrative rules. These discussions are illustrated with examples from the case studies and State and Federal subsidy profiles. In conclusion, policy considerations are raised and speculations made upon future trends in the development of grants-in-aid in general and categorical grants-in-aid in particular. Appendixes contain methodology and a complete delineation of State program profiles, Federal program profiles, and case studies examined in this report. Some tabular data are included.