This paper summarizes and analyzes the program of Special Project Grants for public and community libraries in New Mexico. Funding for the program was by the New Mexico State Library through the Library Services and Construction Act (LSCA) Title I from fiscal year 1972 to fiscal year 1981. Information on LSCA and the procedure for obtaining Special Project Grants precedes an examination of the development of the grant program, which reports a low level of funding, the prevalence of small numerous grants, and a change in program focus from local needs to specific statewide priorities. The paper continues with an evaluation of the Special Project Grants program in light of specific program objectives, which include encouraging library service to special groups, furthering library services based on community needs, encouraging library use of audiovisual materials, providing opportunities for library staff development, and encouraging resource sharing and participation in library cooperative efforts. A major appendix lists the Special Project Grants in order by year of award, with details of grant amounts and library projects funded. Information on project categories and their percentage of grant dollars, and the number of grants and total grant amounts received by individual libraries is also appended. (ESR)