In July 1985 the Supreme Court ruled in Aguilar v. Felton that public school employees could no longer provide instruction, including Chapter 1 services, on religious school premises, previously the most common service delivery model used. This study addresses the following questions: (1) what portion of the decline in services to nonpublic school students in Massachusetts is attributable to the Aguilar decision; (2) why have districts and nonpublic schools pursued particular options; and (3) what are continuing issues to be addressed to restore enrollments and respond to equitability issues? Among the findings were the following: (1) between 1984-85 and 1986-87 nonpublic school student enrollment in Massachusetts Chapter 1 programs dropped 40 percent and public school participation dropped less than 4 percent; (2) most of the drop in service for nonpublic school children may be attributed to the Aguilar decision; (3) Chapter 1 coordinators, nonpublic school principals, and church officials have invested much energy in finding alternative to Chapter 1 services for religious school children; and (4) a few districts are now using mobile vans and computer-assisted instruction after experiencing significant enrollment losses and other problems with alternate sites. Implications for Federal policy are discussed. A table illustrates the data. (BJV)