Data from fiscal 1979 provide the basis for an analysis of distribution of Federal dollars among county areas and assessment of major recent trends. Federal per capita funding remains unevenly divided among the regions; however, the advantage of the West and South may be moderating somewhat. The spread of some Federal programs into more rural counties may have helped reduce the nonmetro area funding deficit. Major differences remain in the way specific categories of programs are allocated. Nonmetro areas are behind urban areas in defense funding, but lead in community resources and agricultural programs. Poorer nonmetro counties are especially reliant on income security programs. The report is organized around several major themes: the changing roles of individual Federal agencies; the types of programs providing Federal assistance; the allocation of dollars among regions of the country; the division of funds according to the income level of nonmetro counties; and the distribution of funds among metro and nonmetro areas. Approximately half the document consists of tables and figures. (Author/BRR)