Intended for policymakers, the report examines the federal government's efforts to influence state and local governments on matters of education. Two agencies within the Department of Education are spotlighted: the Office for Civil Rights (OCR) and the Office of Special Education (OSE). Parallel case studies of OCR and OSE were conducted via more than 150 interviews which sought to identify informal strategies used to influence state and local actions. Interviewees included federal officials from both Washington and regional offices; interest group representatives; members of state and local educational agencies; and complainants, parents, and beneficiary group representatives. Following a discussion of the two offices' operating styles and assumptions, a typology of influence methods available to OCR and OSE is postulated. Two major influence strategies (enforcement and promotion) are identified, and the effects of each on decision making administrative processes, and general policies at the state and local level are considered. A final section presents a framework depicting factors to be considered by the federal government in decisions regarding change for local and state government activities. The importance of matching federal goals with local conditions and of using hybrid strategies is emphasized. (CL)