Chapter 1 of the Education Consolidation and Improvement Act of 1981, like its predecessor, Title I of the Elementary and Secondary Education Act of 1985, provides federal funding for compensatory education programs. Throughout its twenty years of existence, the program has been subject to contradictory claims about its purpose and its effectiveness. This paper presents the most current data about the program, and compares and contrasts recent findings and trends with historical reports on the program. Information is provided on the number and types of districts that receive Chapter 1 funds, on the numbers of children served by the program and their relative status on measures of achievement and poverty, and on the effectiveness of program services. References are included. (Author/TE)