Based on the premises that there is a legitimate federal role in education, that federal education programs need to be simplified, that federal aid must pass through states to the local school districts, and that state and local agencies should be accountable for using federal resources, this paper offers specifications to suggest ways to eliminate unnecessary features of current federal programs. In relation to the controversy over whether it is preferable to institute a form of special revenue sharing or to tighten federal controls, the authors urge a combination of strict accountability for outcomes and wide latitude in determining how those outcomes are achieved. Included in the discussion are programs under Titles I, II, III, IV, and V of the Elementary Secondary Education Act. Recommendations include maintaining the categorical identity of some programs, such as compensatory education, education for severely handicapped children, vocational education, and educational research and development, and consolidating others. This grant simplification proposal would incorporate the principles of "hold harmless" (giving assurances that grantees will receive a minimum allocation based on the previous year's award), performance accountability, and shared state and local control. (Author/WD)