This assessment of the effectiveness of federal service mandates in addressing equal education goals considers the effects and policy implications of existing and theoretical mandate types. The service mandate is a legal requirement (not contingent upon federal financial aid) that states or districts provide educational services satisfying federal standards to target groups of students. Following discussions of existing mandates to serve handicapped and limited-English-proficient children and theoretical attributes of mandates, fiscal and allocative effects of mandates on federal, state, and local budgets, distributive impact, and effects on services for target groups are discussed. An analysis of policy implications concludes that while service mandates are more certain in effect, more efficient in directing resources, and more easily monitored than federal grants, state and local budgets carry the financial burden of mandated services, and existing fiscal inequities are likely to be exacerbated as federal authority is extended to allocating part of state and local revenue. It is suggested that the disadvantages of mandates can be minimized by accompanying them with grants, and that a mandate plus block grant system could provide services for present target groups as well as for the educationally disadvantaged. (MJL)