This report presents a review conducted by a multinational panel on educational policy in the United States. The report concentrates on compensatory programs in elementary and secondary education, with an emphasis on Title I programs. Topics covered include: (1) recent trends in American education; (2) the philosophy, operational design, and evaluation of Federal programs for the disadvantaged; (3) problems of program articulation; (4) the impact of compensatory education at the school level; (5) students' preparation for and transition to working life; and (6) the Federal role in educational funding. Also included is a record of a 1979 conference held to review the above mentioned issues. (APM)