This paper analyzes design alternatives for Federal elementary and secondary education programs. It identifies the range of program strategies available and analyzes their strengths and weaknesses. The proper design for any program depends upon the following factors: (1) goals; (2) the availability of Federal funding to pay for necessary services and administrative actions; (3) accommodations necessary to enact the program and sustain its political support; and (4) the capacity of the organizations that deliver services to beneficiaries. The design of Chapter 1/Title I is analyzed. The following alternative program designs are compared according to several standard criteria: (1) subsidies to assist (or induce) state and local public school systems to change their service delivery patterns; (2) contracts with nongovernmental organizations to deliver certain services or serve designated groups; and (3) transfers of purchasing power to students or their parents. A figure illustrates some of the data. A brief list of references is included. (BJV)