This report is derived from narrative reports for fiscal year 1971 submitted to the U.S. Office of Education by each State department of education. Under Title III of the National Defense Education Act, the Federal government provides matching funds to each State to strengthen instruction in 12 major academic subjects. During fiscal year 1971 the Office of Education developed a management by objectives system to achieve more efficient use of Title III funds by individual States, and each State submitted a new State plan for better management of its Title III programs. Each of these activities is described in separate sections of the report. In addition, the report describes a few exemplary projects utilizing Title III funds and summarizes procedures for assessing each State's educational needs and administering the expenditure of Title III funds. Four tables provide a detailed breakdown of each State's expenditures under Title III in fiscal 1971, and another table lists total Title III expenditures for 1959-71. (Author/JG)