This report, one of a series on block grant implementation, describes the efforts 13 states have made to involve the public in their block grant decisions, and the reaction of various state-level interest groups to those efforts. These public input opportunities were established in response to federal requirements, but also on account of the greater discretion available to the states. The public's opportunity to participate in block grant program decisions has been increased by the availability of more than one forum for public input, such as hearings and opportunities to comment on draft intended-use reports. There has also been greater activity among interest groups and more involvement by state elected officials. However, interest groups were split in their assessment of state efforts to solicit their input. The report concludes that federal public participation requirements, in conjunction with states' own methods, promote multiple opportunities for public involvement and create settings where different degrees of emphasis were placed on a wide variety of issues. Three appendixes supply (1) a list of General Accounting Office (GAO) reports on implementation of block grants, (2) a description of GAO's data collection methodology, and (3) an analysis of interest group characteristics related to their degree of satisfaction with state input processes. (TE)