The Federal Government has a responsibility to help States and localities meet specific education needs that involve the national interest. It has a companion responsibility to provide such assistance with as much equity, simplicity, and stability as possible. For greater equity in the distribution of Federal funds, Congress should reform the ESEA, Title I, fund allocation formula to target the disadvantaged more precisely and to concentrate more directly on schools with the greatest proportion of students in need. For greater simplicity in the provision of Federal aid, several narrow-purpose categorical education programs should be consolidated into a form that will give State and local education agencies greater flexibility in meeting their own needs. Advanced funding of major elementary and secondary programs would provide greater stability and certainty of Federal programs. (Author/DN)