This report presents data for the 1995-96 academic year on state-funded student scholarship and grant programs in 14 tables. States awarded over $2.9 billion in student aid to over 2 million students in 1995-96, an increase of 1.6 percent over the amount awarded the previous year. Of the $2.5 billion in need-based grant aid available, 99 percent went to undergraduates, and of the $500 million in non-need-based aid awarded, 95 percent went to undergraduates. Five states (California, Illinois, New Jersey, New York, and Pennsylvania) collectively awarded more than $1.5 billion in need-based aid to undergraduates, 60 percent of the total awarded in this category. Overall, state spending on need and non-need grant aid to undergraduates and graduates has increased 51.9 percent over the last 5 years. Ten states reported an increase of need-based aid to undergraduates of more than 10 percent over 1994-95 (Arkansas, Colorado, Delaware, Maine, Maryland, Nebraska, North Carolina, Texas, Virginia, and West Virginia), while 5 states reported a decrease in funding of more than 10 percent (Arizona, Hawaii, Massachusetts, New Hampshire, and New Jersey). Tables provide detail by state on such factors as: need-based and non-need-based aid, state student incentive grant program activity, number of awards and dollars by sector, grant dollars per resident population, and percentage of undergraduates receiving grant awards.(MDM)