This paper reviews the economic and political science literature, and the literature on Chapter 1/Title I in order to identify policy options that retain adequate fiscal accountability as well as insure program quality. Chapter 1 of the Education Consolidation and Improvement Act of 1981 is the successor to Title I of the Elementary and Secondary Education Act of 1965. The current structure of Chapter 1--the law and its accompanying rules and regulations--is adequate for insuring fiscal accountability; the means for implementing this structure at the state and local level are firmly developed and function relatively well. The quality of Chapter 1 programs depends primarily on the quality of curriculum and teaching in local school districts, two areas essentially beyond direct influence by the Federal government. Nevertheless, there are several strategies available to the Federal government for improving Chapter 1 program quality, including the following: (1) requiring all Chapter 1 sites to have a schoolwide education improvement program with Chapter 1 integrated into it; (2) requiring Chapter 1 services to be aligned with the regular educational program so Chapter 1 will help low-achieving students to learn the regular curriculum; (3) conditioning receipt of Chapter 1 funds on schools implementing strategies from the effective teaching and schools research; and (4) providing new funds for states to develop model curriculum guides for a strengthened academic program, a testing program to assess student progress in that program, and supplemental instructional strategies and materials to help educationally disadvantaged students. A list of references is included. (BJV)