Options and alternatives for an amended reauthorization of Chapter 1 grants are reviewed. New suggestions are presented for compensatory education service delivery, eligibility, and the allocation of resources. The choices, each of which is examined in detail in this report, include the following: (1) change the methods by which non-public schools are required to provide Chapter 1 services; (2) emphasize school-wide projects or the effective schools model; (3) increase parent involvement; (4) authorize the provision of services in the form of vouchers; (5) emphasize higher order skills as well as basic skills; (6) emphasize pupil values and character as causes of educational disadvantage; (7) encourage the use of educational technology; (8) improve the coordination of Chapter 1 services with the regular instructional program; (9) expand the availability of Chapter 1 services; (10) focus on children from families experiencing long-term poverty; (11) provide more intensive programs for the most disadvantaged; (12) clarify legislative intent with respect to services for handicapped and limited English proficient children; (13) put more emphasis on secondary students and dropout prevention; (14) establish programs for poor minority children who are not educationally disadvantaged; (15) provide incentives to improve performance; (16) modify the allocation formula; (17) eliminate the program; and (18) renew emphasis on the state incentive grant programs. (VM)