Both Federal and State administrative policies were examined by a Congressional committee as part of a general evaluation of the Elementary and Secondary Education Act Title I programs. The principal findings of the committee are presented. Proceedings of the hearings on Title I administration, statements of educators, and supporting statistics and documents are provided. Major topics addressed include policy for allocation of funds for compensatory education programs and the eligibility standards for recipients of Title I benefits. Possibilities for changing eligibility requirements are debated. Data on monies available to individual states are presented in table form. The relationship between Title I, ESEA, and selected State compensatory education programs is described and analyzed. The issue of schools with substantial numbers of educationally disadvantaged children is considered. The 1977 amended version of Title I, 1976 rules and regulations, and a report from the National Institute of Education on administration of compensatory education programs are appended to the volume. Also provided are a number of letters and statements relevant to the evaluation of administrative aspects of compensatory education. (GC)