The President's Discretionary Fund (PDF) continues to play a key role in support of The Commonwealth Fund's national and international programs. In the past year, PDF funds have been strategically allocated to the Fund's programs on Improving Health Insurance Coverage and Access to Care and Improving the Quality of Health Care Services, as well as to the International Program in Health Policy and Practice for collaboration on health policy issues. In addition to supporting programmatic work, discretionary grants fill a range of niches: they help to generate information, enhance surveys, foster action, communicate results, mobilize talented new investigators, build institutions, and forge partnerships. During fiscal year 2000-01, grants totaling $1,289,945 were distributed roughly as planned: 71 percent for projects in the national program areas, 16 percent in international health policy, 6 percent in communications, and 7 percent in special opportunities.