Reviews national interests in education and considers the effectiveness of different forms of federal grants in addressing those interests. Concludes that providing equalization aid is the only appropriate purpose for block grants since such grants do not encourage state and local agencies to concern themselves with national priorities. (PGD)

Four types of federal grants used to address national concerns of educational equity are examined and evaluated: general aid to education, categorical grants for educational equity, block grants for specific groups of equity programs, and matching grants for educational equity. (CT)