The purpose of this report is to review the actions of the United States Office of Education (OE) in the administration and operation of Title I of the Elementary and Secondary Education Act, as amended by the 1978 Education Amendments. The report describes the changes Congress mandated OE to implement and examines OE's response to these specific directives. The report is composed of an introduction and four sections. The introduction overviews the reasons for undertaking the report and the study methodology. The sections describe (1) the background on Federal administration of Title I, including a description of the program, OE's role in the administration, and issues underlying the legislative consideration of changes in that role in 1978; (2) the new structure and requirements for Federal administration of Title I, as enacted in the 1978 Education Amendments; (3) OE efforts to address mandated legislative requirements, and (4) the thirteen findings of the study and recommendations based upon these findings. (Author/MK)