The contents of this report are organized in five parts, as follows. Part One, "Title I: The Cornerstone of Compensatory Education," is a discussion of Title I of the 1965 Elementary Secondary Education Act (PL 89-10): its purpose, the scope of Title I programs, the selection of target areas, aid to nonpublic school children, the requirement of parent involvement by law, and comparability as a source of confusion. Part Two, "Eight Approaches to Compensatory Education," discusses Head Start, Follow Through, postsecondary Education programs, Title III E.S.E.A., Title VII E.S.E.A., Title I Special Migrant Programs, Indian Education Act, and the Right to Read program. Part Three, "What Works?" discusses the traits of successful programs, and describes exemplary programs which indicate some of the factors that contribute to success in children's achievement. These include five programs that were studied by American Institutes for Research in the Behavioral Sciences, Palo Alto, California. Part Four, "Crystal-Ball Gazing," predicts the course and direction of future federal compensatory education efforts. Part Five, an "Appendix," lists 1973 Ed Fair Programs, National Advisory Council on Education of Disadvantaged Children recommendations for legislation on compensatory education, and 1973 recommendations from Title III Advisory Council. (JM)