A study was done of how Chapter 1 remedial educational services are being provided to private sectarian school students. Federal court ruling had determined that sectarian schools could not receive such funds directly, but that public schools must provide the services to students in sectarian schools. As a consequence, local public schools have been provided with additional funds to support those services. The evaluation was based on questionnaire survey results from Chapter 1 coordinators in all 50 states, the District of Columbia, and Puerto Rico, focusing on the 10 states with the largest number of private school students receiving Chapter 1 services. In addition, site visits were conducted at state and local education agencies in California, Massachusetts, and Michigan. Analysis found that the number of private school students in the Chapter 1 program had increased to 168,000 students. The proportion of eligible Chapter 1 students being served also appears to be increasing. Major reasons for not serving even more eligible students were that some private schools chose not to participate and some parents would not permit their children to participate because they did not want the students leaving the private school building. Extensive appendixes contain tables and figures displaying the results and a copy of the study survey. (JB)