To aid the United States Congress in its analysis of alternative for federal aid to libraries, the Government Accounting Office (GAO) reviewed the two largest federally funded programs, the Elementary and Secondary Education Act of 1965 (ESEA) Title II and the Library Services and Construction Act (LSCA), to assess their effectiveness in meeting legislative objectives and to determine if problems existed. GAO found that federal library support programs have helped to improve materials and services in school and public libraries nation-wide. Some problems were noted in state procedures for allocating federal funds which tended to limit the funds available to local governments to provide services for those most in need. GAO compiled several recommendations for the improved distribution of funds, taking into consideration the views of the office of Health, Education and Welfare, which administers the LSCA and ESEA programs. (Author/SL)