This paper examines traditional regulatory concerns of urban educators in administering Chapter 1 programs, tracks the impact of a recent deregulatory provision (school-wide projects) enacted in 1988 and other amendments to Chapter 1 legislation, and discusses the reform's effectiveness given the increasingly severe problems facing many urban children. The experiences of 4 large urban school districts in Atlanta (Georgia), Chicago (Illinois), Dade County (Florida), and Dallas (Texas) in implementing 60 school-wide projects in 1989-90 reflect the diversity of large urban school systems. The 1988 school-wide project reform has had a modest impact. In Chicago, Atlanta, and Dallas, it has not been vigorously pursued. The reform has had the least impact in Chicago, whose system is reeling from massive, state-legislated restructuring that overwhelms district personnel and overshadows other initiatives. In Dade County, the reform has been implemented enthusiastically (with 48 school-wide projects in 1989-90), but only incremental improvements in academic achievement are predicted. The reform may not address the critical educational and social problems facing large urban school districts today. Recasting Chapter 1 schools as full-service schools would allow program resources and strategies to become part of a comprehensive strategy addressing poor inner-city children's needs. Included are 18 references and 1 table. (RLC)