This report describes the implementation of Section 1017 of Chapter 1 contained in Title I of the Elementary and Secondary Education Act. Section 1017 requires school districts to serve eligible students enrolled in private schools. Private schools affiliated with religious groups make up the bulk of all Chapter 1-eligible students. The report begins by reviewing the political and judicial history of the requirement that Chapter 1 serve religious-school students. Subsequent chapters cover the trends in the levels of private-school student participation in Chapter 1, the characteristics of Chapter 1 services for religious-school participants, special issues in the administration of Chapter 1 services to religious-school students, and the options for improving Chapter 1 services to religious-school participants. Twenty-one exhibits illustrate the discussion. Appendix A describes research on Chapter 1 services to religious-school students sponsored by the U.S. Department of Education. Appendix B describes the major data sources used to generate estimates of private school student participation in Chapter 1. (Contains 53 references.) (GLR)