In society today, technology, education, and economic growth go hand in hand. Technological literacy is important not only to children's own future economic well-being, but also to the economic well-being of our nation. Technology can help expand opportunities for learners to improve their skills, maximize their potential, and ready them for the twenty-first century. Over the past seven years, the Clinton administration has focused on four goals for educational technology: (1) training teachers to use technology effectively in instruction, (2) ensuring that all teachers and students have modem computers in their classrooms, (3) connecting every classroom to the Internet, and (4) integrating high-quality software and online learning resources into every school's curriculum. [1] New federal programs inspired by these goals--along with changes in telecommunications policy, investments at the state and local level, and support of the high-tech industry--have resulted in great progress. For example, between 1993 and 1999, the percentage of classrooms with Internet access grew from 3% to 65%, and by the end of 2000, 100% of schools will likely be connected to the Internet. [2] Virtually all full-time regular public school teachers report they now have access to computers or the Internet in their schools, and about two-thirds say they are using the new technology for classroom instruction. [3] And yet, despite this progress, more needs to be done. Among classrooms in the poorest schools, for example, only 39% were connected to the Internet. And two-thirds of the same teachers who have access to technology also say they are not well prepared for the task. At the federal level, several programs have been introduced to help meet this challenge (see Table 1). A key program helping to reduce t he digital divide is the Education-rate (or E-rate) program. Under a provision in the 1996 Telecommunications Act, the Federal Communications Commission is empowered to use the universal service mechanism to provide E-rate subsidies for telecommunications services and Internet connections for schools and libraries. Subsidies provided through this program have benefitted more than 80,000 schools and thousands of libraries, with the greatest assistance going to those with the greatest need. In addition, the U.S. Department of Education's Community Technology Center program hopes to improve access to technology for both children and their families in underserved communities by supporting the development of 1,000 centers across the country. As of 2000, funding has been provided to develop 450 such community technology centers, and more are planned for the future. To support better use of technology in the classroom, several programs place a central focus on teachers. The new Preparing Tomorrow's Teachers to Use Technology program that supports partnerships among colleges, school districts, state educational agencies, and high-tech companies will reach almost one-third of prospective teachers, enhancing their technological literacy and enabling them to integrate technology in their teaching. The Department of Education has also urged states to devote at least 30% of their grants from the Technology Literacy Challenge Fund to train teachers on how to use technology effectively in instruction, especially teachers in high-poverty, low-performing schools. In fiscal year 2000, funding for educational technology through the E-rate and U.S. Department of Education technology programs reached an all-time high of $3 billion. Despite this significant amount of funding for technology, federal investment in education is small compared to the overall investment at the state and local levels. Thus, each of the Department's technology programs attempts to encourage a cooperative approach by supporting the involvement and investment of state and local school districts and the private sector with the knowledge and resources held at the national level. …