The Chapter 2 program, originally authorized as Chapter 2 of the Education Consolidation and Improvement Act of 1981 and reauthorized as part of the Elementary and Secondary Education Act (1988), represents a substantial investment of Federal education funds to support general educational improvement. Funds are made available to states and local education agencies (LEAs) on the basis of applications that describe how the funds will be used. This report provides a summary of the state Chapter 2 applications regarding LEA distribution formulas and weighting criteria, state advisory committee composition, and planned uses of funds reserved for state educational agency (SEA) purposes. The report is based on a review of applications from the 50 states and the District of Columbia and Puerto Rico in November 1990. Quantitative and descriptive data were abstracted from the applications and compiled for the 1989-90 school year. This paper includes five sections/chapters covering the following topics: (1) program background; (2) LEA distribution formulas; (3) state advisory committees; (4) SEA uses of funds; and (5) Chapter 2 as a force for educational improvement. Thirteen tables present data derived from the state Chapter 2 applications. (SLD)