The economic problems of localities in the U.S. fall into two broad categories. Problems of low income occur if a local economy supplies too few jobs, and if the jobs that do exist pay low wages or are in the low productivity sectors of the economy. Problems stemming from low economic growth are marked either by an absolute decline or by low growth in real income and earnings, population and employment. In this document regions with local economic difficulties are identified. Per capita income and economic and population growth rates are described. Differences are examined between local economies of different geographical regions, and between metropolitan and nonmetropolitan areas. The actions of the federal government aimed toward promoting economic growth are focused upon. It is demonstrated that a disproportionate amount of federal funding is concentrated in areas which have relatively high rates of growth and per capita income. Statistical data serve as the basis for the discussion and the conclusions. (Author/GC)