This working paper examines funding to U.S. school districts and public schools in accordance with Chapter 1 of Title I of the Elementary and Secondary Education Act of 1965 as amended in 1988. The report discusses the background of the legislation, describes its provisions, and presents results from the Schools and Staffing Survey conducted in 1987-88 and the 1990-91 administration of the Public School Questionnaire and Private School Questionnaire. Findings are reported concerning which school districts are receiving Chapter 1 funding, the number of schools enrolling students served in Chapter 1 programs, and the number of students being served by elementary and secondary schools and participation by school poverty concentration. The following results are highlighted: (1) over 90 percent of all public school districts in 1987-88 received Chapter 1 services, and virtually all of the very needy districts received Chapter 1 funds; (2) nationwide, 66 percent of public schools and 25 percent of private schools enrolled students who were served in Chapter 1 programs in 1990-91; (3) 87 percent of the schools with the highest concentrations of poor children provided Chapter 1 services in 1990-91; (4) nearly 5.7 million students, or about 13 percent of all students in 1990-91, received Chapter 1 services; and (5) elementary school students were more likely to be served than were secondary school students in 1990-91. An appendix provides nine data tables. (Contains 7 references.) (GLR)