In order to assess the effectiveness of the Career Education Incentive Act (CEIA) of 1977, data were collected from a review of eight states' fiscal 1980 and 1981 annual reports as well as from a study conducted by the American Institutes for Research. According to these data, CEIA monies have indeed been allotted and matched as prescribed by the act. Furthermore, the Division of Career Education, U.S. Department of Education has assumed a national leadership role in career education as well as an administrative one. The CEIA has also strengthened the role of state leadership in career education. In distributing local education agency (LEA) grants, some states have opted for intensity by concentrating resources in a small number of LEAs, while others have favored breadth by awarding large numbers of small grants. The CEIA has created widespread awareness of and involvement in career education not only within the elementary and secondary education community, but also among the business/labor/industry community. Finally, all the data reviewed indicated that the CEIA has strengthened states' capacities to promote career education on an ongoing basis. (Appended to the report are (1) a list of career education funds disbursed to each state in fiscal years 1979 through 1982 and (2) the text of the Career Education Incentive Act. (MN)