The ¿Implementation Plan for the National Strategy for Pandemic Influenza¿ states that in an influenza pandemic, the primary response will come from states and localities. To assist them with pandemic planning and exercising, Congress has provided $600 million to states and certain localities. This report: (1) describes how selected states and localities are planning for an influenza pandemic and who they involved; (2) describes the extent to which selected states and localities conducted exercises to test their influenza pandemic planing and incorporated lessons learned as a result; and (3) identifies how the fed. gov¿t. can facilitate or help improve state and local efforts to plan and exercise for an influenza pandemic. Illustrations.