Criteria have been developed to determine the adequacy of public library services and establish priorities for awarding grants to municipalities under the Library Services and Construction Act. Special groups designated for funding consideration under Title I include municipalities in low-income areas, institutional residents, and physically handicapped persons. Priorities for library construction under Title II are based on the adequacy of existing facilities, the availability of local financial resources, and membership in regional library systems. Librarians are encouraged to organize interlibrary loan networks which will be funded under Title III, with funding priority given to cooperative groups of three or more libraries. (JAB)