The Independent Review Panel of the National Assessment of Chapter 1 recommends fundamental changes to the program, while endorsing its continuing vital role in meeting the special educational needs of poor and disadvantaged students. The program's focus on low-level basic skills, funding systems that discourage highest-level performance, money spread among too many districts and schools, and burdensome testing requirements that do not serve multiple purposes deter upgrading poor and low-achieving children's quality of education. The following 13 recommendations are provided: (1) reform the whole school emphasizing high standards and implementing new assessments; (2) emphasize higher-order skills and high standards for all students; (3) focus on outcomes and adopt new assessments to measure them; (4) the Federal Government should provide matching funds to states to help them implement the Panel's reforms; (5) intervene early and get parents involved in their children's (and their own) education; (6) extend Chapter 1 services to all limited English proficient students; (7) improve targeting of high-poverty schools; (8) provide incentives for good teachers to serve highest-poverty schools; (9) provide professional staff development for all staff; (10) involve parents in all aspects of the school program and enhance their ability to support their children's attainment of academic standards; (11) pay for coordination of services to students; (12) make services for private school children more equitable and effective; and (13) improve aid to truly migratory children. (RLC)