This study of Federal sentencing alternatives was done at the Bureau of Prisons headquarters, the Bureau's Western Regional Office, the Administrative Office of the U.S. Courts, selected district courts, and the Federal Probation Service. The issue was also discussed with officials from State courts and departments of corrections in Maryland, California, Massachusetts, Virginia, and Georgia. Most of the information supporting the need for an additional sentencing alternative came from interviews with persons from the aforementioned organizations. These officials indicated they are concerned about not having an alternative to incarceration and probation for certain nonviolent offenders who may not need the secure environment of an institution but who do need more control and supervision than that provided by probation. The Bureau has decided to postpone a pilot project to develop such a sentencing alternative because of fiscal 1982 budget cuts. This decision should be reconsidered because of the possible long-term effect of delaying implementation of the pilot program. Further, the study found that the Bureau could offset a larger portion of the operating costs of halfway houses by enforcing its policy of having residents pay some of the costs of their room and board. Department of Justice comments on this draft report are appended.