This packet of materials is designed as a basic guide for community-based organizations (CBOs) interested in tracking the use of State Legalization Impact Assistance Grants (SLIAG) funds and in advocating that they be used efficiently and effectively. The SLIAG program was created under the Immigration Reform and Control Act of 1986 (IRCA) to assist states in providing public health, public assistance, and educational services to newly legalized immigrants. Many states are overly cautious in implementing SLIAG because the regulations are complex and difficult to implement, and the reimbursement formula is confusing. The following issues are discussed: (1) the allocation formula; (2) the definition of Eligible Legalized Aliens (ELAs); (3) administrative costs; (4) tracking; and (5) the current status of implementation. CBOs seeking SLIAG educational funding often encounter problems because of conflicting priorities and inefficient state administration. Eight suggestions for overcoming these difficulties are included. The following materials are appended: (1) a table illustrating the 1988 final SLIAG allotments, by state; (2) a list of contact persons; (3) a table illustrating federal offset figures, 1988-91; and (4) a table illustrating estimated legalization applications, by state of residence. (FMW)