Partly because of the rise of block grants, federal distribution mechanisms raise the issues of federal control and distributional equity in elementary-secondary grant programs. Data--drawn from such major programs as aid for education of the disadvantaged, aid for education of the handicapped, vocational education, and bilingual education--were analyzed according to three topics: the requirement for funding and eligibility in the programs, the distribution roles of federal and state governments, and the formulas for distributing federal funds. The fund allocation formulas and discretionary allocation processes appear to be widely varied, uncoordinated, and, in some cases, vague. Federal and nonfederal programs thus require better coordination, or, as an alternative, an effective allocation of authority to the states, in order to ensure both federal and state interests in the distribution of funds. The present federal formulas are insensitive because they fail to take account of educational or local needs, local fiscal factors (such as revenue-raising ability or variations in cost), or program goals, nor do they make explicit the discretionary criteria for funding. Future allocation procedures will be affected by the increasing number of state compensatory education programs, and indeed should be changed by more effective intergovernmental cooperation on formulas to fund handicapped, vocational, and bilingual programs. (JW)