This report presents the results of initial research performed on the manpower impact of selected Federal grants, summarizes the status of existing study in the Bureau of Labor Statistics (BLS), and examines the manpower impact of other types of expenditures. The past study by BLS assessing employment effects of direct expenditures by the Federal government is summarized in part 1. The main focus of the study was to examine the expenditure processes and employment requirements of grant programs and one program involving transfer payments. Three major tasks or phases were involved: (1) a compilation of all Federal grants to State and local governments on a functional basis, (2) an attempt to trace Federal grants through the State level to local governments by program, and (3) manpower impact analysis case studies of the School Lunch Program, Elementary and Secondary Education Act-Title I, and the Food Stamp Program. These selected grant programs provided insights into developing manpower impacts on a program basis. Tables analyzing data are included, and an appendix listing employment statistics by industry concludes the document. (Author/MW)