This study examines federal aid to local school districts as it influences local priorities in relation to other sources of income. Sections deal with the basic theory of resource mobilization applied to questions of federal aid, factors influencing the latitude a school district will have in mobilizing funds, factors influencing use of federal funds, the impact of federal aid on local school districts, general propositions on organizing staffs to mobilize funds, and suggested adjustments in governmental policies. The main finding suggests that factors other than federal regulations and formulas have a greater impact on the patterns of resource allocation used by recipient agencies. (Author/DW)