This report covers the first year in which vocational programs and related activities were supported by the Vocational Education Act of 1963. Topics presented are new directions in vocational and technical education, financial reports, program activities of the service areas, teachers and teacher preparation, research, and major problem areas such as central cities, special programs, and residential schools. Appendixes include 67 tables portraying information such as the student enrollment and number of schools offering vocational education programs, numbers of teachers, total expenditures, as well as expenditures of federal, state, and local funds. Other annual reports are available as ED 019 446 (1964) and VT 007 677 (1966). (CH)