This study investigated communities in 10 randomly selected states to determine the extent to which Local Public Works (LPW) funds, which were disbursed according to procedures intended to benefit areas of unemployment and provide assistance for the chronically unemployed, were actually received in targeted low income or high minority areas. The Local Public Works program was established by Congressional legislation in 1976 to provide aid for public works projects that would generate jobs in municipalities with high levels of unemployment. An early study indicated that, contrary to the program's reputation for promoting affirmative action, the allocation of LPW funds tended to bypass areas with large concentrations of minorities. Analysis of the associations between the size of LPW grants and the proportion of blacks, per capita income, and number of unemployed in a community indicated that, generally, the program did benefit communities with large numbers of blacks and low per capita income. However, it was pointed out that many extremely needy communities may not have received funds and that persons hired were not often the chronically unemployed. It was suggested that programs of this kind indirectly benefit needy communities but cannot take the place of programs specifically designed for public sector employment. (Author/MJL)