The State and Local Fiscal Assistance Act of 1972 was shaped by a decade of discussion and compromise. Under the Act, federal funds have been disbursed to all State and local general purpose governments from 1972 through 1976. This legislation has been renewed without major revision. The principal focus of this work is an evaluation of the program's allocation of funds to cities. The actual allocation of general revenue sharing funds to cities is tested by means of multiple regression analysis against four criteria commonly offered as guidelines for disbursing intergovernmental grants. Results from regressions run on data for 39 California and 30 Michigan cities indicate that the four normative factors are not well reflected in the distribution of shared revenue under the 1972 Act. The redistributive impact of the program on poor citizens, as distinguished from poor jurisdictions, is also examined. This impact was found to be negligible. Finally, an illustrative program designed to promote redistribution is outlined and its impact is contrasted with that of the existing program. (Author/GC)