Eight papers from a one-day conference for lawyers, judges, and policy-makers discuss the effects on intergovernmental relations of the emerging body of laws, regulations, and court decisions governing federal grants and their recipients. The expanding importance of federal grants, notes an introduction to the papers, has meant both less leeway for state and local governments to turn down grants and many more court cases involving federal versus state sovereignty. Accompanied by comments and discussion, the first paper examines the current body of federal grant law and its legal and constitutional implications. Three further papers analyze government and private litigation over two large federal programs, the Community Development and Law Enforcement Assistance Administration block grants. A fourth paper gives tips and guidelines to state and local governments for arguing before the U.S. Supreme Court. To exemplify the legal, political, and fiscal implications of federal grant law, a paper in the form of a play presents a hypothetical case involving a city government and regulations regarding the disabled. Two final papers summarize the impact of federal grant law, through the judiciary, on intergovernmental relations and traditional federalism. (RW)