A study of the implementation of six major federal education policies in four urban school districts (Baltimore, Maryland; Milwaukee, Wisconsin; San Diego, California; and Dade County, Florida) generally supported a new theory of federalism. Research data were drawn from statistical reports and from interviews with over 150 persons at local, state, and federal levels between 1981 and 1983. A secondary study of federal policies in health and housing tested the primary study's findings. The study concluded that the pattern of intergovernmental relations depends on whether the policies concerned are developmental or redistributive, whether the programs are new or well-established, and whether political constituencies are mobilized. Developmental programs tend to generate less intergovernmental friction and are best directed by politicians, while redistributive policies can counter local political interests, particularly in less prosperous locales, and are best administered by professionals. While inter-governmental systems appear to develop consensual decision-making processes over time, the image of unworkable federalism may persist because research often focuses on new programs and controversial policies. The study also considers the political and legislative contexts affecting enactment of educational programs, and the economic, fiscal, and political characteristics of the school districts studied. (PGD)