Title II of the Elementary and Secondary Education Act of 1965 (ESEA Title II) provides direct federal assistance for the acquisition of school library resources, textbooks, and other instructional materials. It is a state plan program: the state plan is the contract/agreement which the U.S. Office of Education negotiates with a state or eligible outlying area for the operation of a program designed to acquire materials for use by public and private elementary and secondary school children and teachers. Funds are allotted to each state on the basis of the proportion of students, from the total in all the states, it has enrolled in its schools. The first annual report of ESEA Title II programs describes how the fifty states, the District of Columbia, Guam, Puerto Rico, the Trust Territory of the Pacific Islands, and the Virgin Islands utilized their funds in FY 1966, when $100 million was appropriated. Areas covered in the report include state plans approved, children and teachers participating, funds expended, instructional materials made available, and state and local educational programs strengthened; state programs for strengthening instruction through improved resources, demonstration centers, and special-purpose grants are also described. Eighteen tables present data on materials and their related costs, broken down by region, state or area, and per student per state. Supplementary tabulated data on audiovisual materials acquired under the 1966 programs are appended. (Author/JD)