The nation's first federally funded school voucher program will be run by a private nonprofit group with ten years of experience managing scholarships for low income students. Officials announced Wednesday that the Washington Scholarship Fund would administer $13 million for a District of Columbia program which could help up to 1,700 students this fall.

"It will take everything within our power to get this program up and running by the upcoming school year," said WSF president Sally Sachar. Although Congress passed the bill creating the program in January, officials from the district and the Department of Education did not select an administrator for the fund until this week. WSF was one of three applicants bidding for the contract; the losers were not identified.

Under the program, low income students can receive up to $7,500 to attend private or parochial schools. The money can be used for tuition, fees and transportation.

Applications will be available in April and require verification of income, which cannot exceed $34,040 for a family of four. If demand exceeds the available grants, a lottery will be held. Students also have to meet enrollment criteria established by the schools.

WSF has awarded $10 million in privately funded scholarships to about 3,000 local students since 1993. About 1,000 students are attending 128 schools under its aid programs this year. Sachar said there are no plans to curtail those efforts.

"We're in the business of improving education by providing parents with choices," said Education Secretary Rod Paige.

Mayor Anthony A. Williams testified in support of the measure repeatedly on Capitol Hill. He called WSF's appointment "a huge step in the right direction."

Parents and others who supported the measure pointed to habitually low test scores, safety and facilities issues as reasons for seeking alternatives to the D.C. Public Schools.

But space for the upcoming academic year may be limited, particularly in the 28 schools operated by the Archdiocese of Washington.

"We should be able to take about 300 students," said Patricia Weitzel-O'Neill, the ADW's school superintendent. But an ADW spokeswoman said the number could climb to 500.