This document reports the findings of the National Study of Local Operations under Chapter 2 of the Education Consolidation and Improvement Act of 1981, the federal education block grant, concerning the legislation's effects on the provision of services to private school students. Data for the report came from national mail and telephone surveys and from site visits to school districts and private schools in eight states. An introductory chapter reviews the history of the involvement of private school students in federal programs, notes changes brought about by the block grant, and describes the methodology of the aspect of the study reported here. The second chapter presents a descriptive profile of local practices under Chapter 2, focusing on fund allocation, services, administration, and the level of participation of private school students. The four remaining chapters in the body of the report address specific individual issues: the nature of private school students' access to services, the equality of per pupil expenditures, the equitability of services, and the administration of the aspect of the grant program aimed at private school students. A concluding chapter assesses the costs and benefits of the participation of private school students from the perspectives of both public and private schools. Appendixes provide error values for the tables accompanying the text and a list of the antecedent programs consolidated into the Chapter 2 block grant. (PGD)