This paper argues for two major changes in the selection of students and in the way that services are delivered under Chapter 1 of the Education Consolidation and Improvement Act of 1981. The first change would make available Chapter 1 funds only to schools with very high proportions of children whose families live in poverty. The second change would encourage the use of Chapter 1 funds in school-wide programs to augment and improve the quality of the regular school program in these high poverty schools. There are four sections to this paper. The first sketches general premises which help lead to the two sets of recommendations. The second considers the question of who should be served, and the third section addresses the various kinds of services that should be offered. The final section summarizes the key recommendations and the rationales for the recommendations. The paper incorporates critical reactions to the research papers written for the conference session on student selection and services and draws extensively on other research. Endnotes and references are included. (PS)