TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 AUTHORIZES FEDERAL FINANCIAL ASSISTANCE TO EXPAND AND IMPROVE EDUCATIONAL PROGRAMS THAT CONTRIBUTE TO MEETING THE SPECIAL NEEDS OF EDUCATIONALLY-DEPRIVED CHILDREN, INCLUDING NEGLECTED OR DELINQUENT YOUTH IN INSTITUTIONS. IN FISCAL YEAR 1976, $41 MILLION WAS PROVIDED UNDER THE ACT TO ASSIST YOUTH RESIDING IN MORE THAN 2,000 INSTITUTIONS THROUGHOUT THE COUNTRY. THE MAJORITY OF PARTICIPANTS IN TITLE I PROGRAMS ARE 3 TO 4 YEARS BELOW NORMAL EXPECTATIONS IN READING AND MATHEMATICS. IN ADDITION TO THESE SERIOUS DEFICIENCIES, PARTICIPANTS OFTEN HAVE VARIOUS SOCIAL, EMOTIONAL, AND BEHAVIORAL PROBLEMS. SERVICES OF TITLE I PROGRAMS ARE RESTRICTED TO THE PERIOD OF TIME THAT YOUTH ARE RESIDENT IN AN INSTITUTION. IT APPEARS THAT NEGLECTED YOUTH, AS A GROUP, HAVE THE GREATEST OPPORTUNITY TO ACHIEVE SUBSTANTIAL EDUCATIONAL PROGRESS BECAUSE THEIR AVERAGE RESIDENCE IS MORE THAN TWICE AS LONG AS DELINQUENT YOUTH (22 MONTHS VERSUS 10 MONTHS). AFTER INSTITUTIONALIZATION, YOUNGER YOUTH ARE MORE LIKELY TO ENROLL IN SCHOOL WHILE OLDER YOUTH ARE MORE INTERESTED IN OBTAINING EMPLOYMENT. A NATIONWIDE SURVEY OF INSTITUTIONS SHOWS THAT ADMINISTRATORS CONSIDER ACADEMIC EDUCATION IMPORTANT BUT SECOND TO MENTAL HEALTH NEEDS. IT IS CONCLUDED THAT MORE SELECTIVE FUNDING OF PROJECTS IS NEEDED, DUE TO PROBLEMS FACED BY NEGLECTED OR DELINQUENT YOUTH, UNSUCCESSFUL RETURNS TO SCHOOL AND THE COMMUNITY, AND INADEQUATE BACK-TO-SCHOOL TRANSITION SERVICES. SUCH FUNDING CAN MAKE TITLE I PROGRAMS MORE EFFECTIVE SINCE EXPENDITURES WOULD BE CONCENTRATED ON YOUTH LIKELY TO RECEIVE EDUCATIONAL SERVICES OVER A LONGER PERIOD OF TIME. THE NEED FOR A RESPONSIVE FEDERAL EFFORT TO ADDRESS ISSUES OF JUVENILE DELINQUENCY AND CHILD ABUSE AND NEGLECT IS DISCUSSED. SUPPORTING DATA ARE PROVIDED. APPENDIXES CONTAIN PROCEDURAL INFORMATION AND FORMS PERTINENT TO THE STUDY OF FEDERAL EDUCATIONAL ASSISTANCE FOR INSTITUTIONALIZED YOUTH. (DEP)