Chapter 1 of the Education Consolidation and Improvement Act of 1981 is the largest federally-funded program designed to provide services to educationally deprived elementary school and secondary school students who live in areas with a concentration of children from low income families. Annual needs assessment and evaluation are requirements of the federal program. This paper records the status of Chapter 1 programs in Arkansas in fiscal year 1989. In 1989, Chapter 1 programs were administered by 312 local education agencies (LEAs), 4 educational cooperatives that administer 17 LEAs, and 2 institutions for the neglected and delinquent. A total of 67,871 students participated in one or more Chapter 1 programs in public or private schools. Of these, 42 percent belonged to an ethnic minority, while 25 percent of Arkansas students as a whole were minority students. Achievement gains resulting from Chapter 1 programs are reported by grade. Reading, language arts, and mathematics programs were effective in improving the achievement level of participants. Average normal curve equivalent gains were positive across all grades except grade-10 language arts. Thirteen tables and one bar graph present evaluation data for the Chapter 1 students. (SLD)