In fiscal year 2011, the federal government provided $607 billion in grants to state and local governments. Those funds accounted for 17 percent of federal outlays, 4 percent of gross domestic product (GDP), and a quarter of spending by state and local governments that year. Over the past 30 years, those "intergovernmental" grants--financial transfers from the federal government that support a wide range of state and local programs--have fluctuated as a share of federal outlays. Federal grants for health programs, primarily Medicaid, have grown rapidly, and grants for programs and initiatives not related to health--such as those associated with income security, education, and transportation--have also increased, albeit at a slower rate. In total, the federal government reported outlays in 2011 for more than 200 intergovernmental grant programs, which were administered by 30 federal departments and independent agencies. (Contains 3 figures, 2 boxes and 33 footnotes.)