Asbestos, a mineral known to cause cancer in humans, is present in an unknown number of schools where it may be hazardous to the health of students and employees. Although the Federal Government has programs designed to address the asbestos situation, it has not determined in what specific circumstances asbestos is a hazard. Therefore, State and local school officials currently face a dilemma concerning what to do when they find asbestos in their schools. The first chapter of this document discusses the nature and uses of asbestos, health hazards, Federal action to address asbestos in schools, and a summary of Federal efforts to reduce asbestos in schools. The second chapter discusses Environmental Protection Agency (EPA) actions to address asbestos in schools, focusing on EPA's technical assistance program (indicated to be a limited success), various State and local abatement responses, and EPA inspection and notification rules. The third chapter considers the limited impact of the Asbestos School Hazard Detection and Control Act of 1980, indicating that no loans/grants are available for asbestos detection and control, that asbestos hazard criteria are still lacking, and that state reports and records provide limited information. Appendices include characteristics of State programs to address asbestos in schools and state asbestos program summaries. (Author/JN)