This report summarizes the findings from the first phase of a 3- year study of the implementation of the Economic Dislocation and Worker Adjustment Assistance (EDWAA) Act performed for the U.S. Department of Labor, based on the implementation experience of 15 states and 30 substate areas during Program Year 1989. This first phase consisted of case study investigations to asses the progress in furthering the EDWAA legislation. Field researchers conducted discussions with state and substate EDWAA policymakers and administrators, rapid response staff, and substate staff or service providers involved in the design and delivery of EDWAA services to dislocated workers. The report begins by discussing the initial organization and design of the EDWAA program at the state, substate, and interagency levels. Next it discusses EDWAA operations, including rapid response activities, basic readjustment services, and retraining services. The report concludes by assessing the overall progress in furthering the seven themes of the legislation and providing recommendations for improvements.