Chapter 1, the Federal program of grants to local education agencies (LEAs) for the education of disadvantaged children, authorizes the distribution of assistance through both a basic and a concentration grant formula. Concentration grants are intended to provide additional assistance to areas with especially high numbers or proportions of educationally disadvantaged children. Under the current concentration grant formula, only LEAs in counties with more than 5,000 formula (primarily, poor) children, or where such children constitute more than 20 percent of the school-age population, may receive concentration grants. Two different versions of H.R. 5, legislation to amend and extend Chapter 1, were passed by the houses of Congress in 1987, and this bill currently awaits final conference committee action. Each version of H.R. 5 would substantially revise the Chapter 1 concentration grant formula. This report provides background information on the concept of Chapter 1 concentration grants, and an analysis of the distribution of concentration grants under the current law as compared to the two H.R. 5 formulas. Tables illustrate the data. (Author/BJV)