The National Assessment of Vocational Education (NAVE) examined how the federal law was implemented and federal funds were distributed under the Carl D. Perkins Vocational Education Act of 1984. Data were reported on targeting of resources among and within states and on the uses of federal funds, and implications were drawn from the findings. The study found that the rates at which states allocated Perkins Act funds among secondary and postsecondary sectors varied greatly in 1986-87, with postsecondary shares ranging from 8 to 100 percent. In addition, separate area vocational school districts appeared to receive a disproportionate share of the federal funds in secondary education. In contrast, most school districts received grants that were too small to mount new initiatives of any size. For the disadvantaged set-aside alone, school districts with the highest poverty rates had a greater likelihood of receiving an award, and their per-student disadvantaged and handicapped set-aside awards were larger than those in other districts. A substantial amount of Perkins Act funds were used for assessments and other types of vocational counseling. Handicapped set-asides go to students with individualized education plans at the secondary level and to students with physical and cognitive impairments at the postsecondary level. Recommendations were made for improvements in fund allocation. (KC)