The Chapter 1 program provides aid to local education agencies (LEAs) for the education of disadvantaged children. This review of background and issues involved in the reauthorization of Chapter 1 covers funding and participation trends, features of the program, selection for participation, fiscal issues, and program improvement. A key concern is how to more systematically identify elements of the most effective programs, disseminate information about them, and provide additional incentives to adopt more effective policies and practices. Debate about the program's allocation formula has centered on not only the new (1990) census data and possible means of updating it more frequently in the future, but also the extent to which funds are targeted on schools with the pupils most in need of assistance. Debate on reauthorization is also likely to focus on the most efficient methods of regulating local projects so as to assure accountability while providing flexibility to grantees to implement effective programs. Congress may consider providing limited authority to federal or state education agencies to offer regulatory waivers in return for increased accountability that is based on pupil outcomes. In addition, Congress may consider ways in which parental involvement can be enhanced without adopting burdensome requirements and analyze how to enhance the equity of treatment for pupils attending private schools. (JB)