The design and operations of the Economic Dislocation and Worker Adjustment Assistance (EDWAA) Act program in its implementation year were examined through case studies conducted in 15 states and 30 substate areas. During 6- to 8-day visits to each state, field researchers conducted discussions with state and substate respondents. States almost universally chose to make the geographic boundaries of substate areas the same as the service delivery areas. In devising formulas for distributing funds, states found it difficult to locate reliable and consistent data for federally required formula factors. Each state established client priorities for EDWAA. States generally deferred to substate areas the design of specific services for dislocated workers. Most states did not play an active role in providing technical assistance to substate areas. Two other aspects of EDWAA design studied were procedures to promote labor-management cooperation and procedures to coordinate EDWAA services with other agencies. Only one-third of the states were committed to creating formal labor-management committees. Coordination between EDWAA and other agencies was widespread and effective in increasing services. States differed discernibly in their commitment to rapid response. Substate areas provided basic readjustment services in two modes: linked to rapid response activities and as a general dislocated worker service. Most EDWAA-funded retraining services were provided through general service systems for dislocated workers administered by substate areas. (YLB)