This study examines the way Federal funds are distributed to the states to carry out the adult and dislocated workers programs under the Workforce Investment Act of 1998.  The study examines how year-to-year allotments change due to changes in the unemployment factors used to make the adult and dislocated worker calculations; the differences the hold-harmless provisions make to the adult allotments; the effects of the economically disadvantaged factor, using data from the Small Area Income and Poverty Estimates program; and how closely the dislocated worker allotments match the distribution of program eligibles.