Abstract
Chapter 2 of the Education Consolidation and Improvement Act is a centerpiece of the Reagan Administration’s education policy. The enactment of Chapter 2 consolidated funding from 32 categorical programs into an educational block grant that is distributed to state educational agencies and from the states to local school districts. The funds may be used for any of the purposes supported by the antecedent program.1Based on nationally representative data collected for a study of local operations under Chapter 2, this paper examines three topics related to the block grant: the distribution of Chapter 2 funds among school districts, the patterns of local uses of these funds, and possible explanations for the spending patterns for the first 3 years of the block grant (school years 1982–83, 1983–84, and 1984–85).
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