The second annual compilation and analysis of data on Title II of the Elementary and Secondary Education Act (ESEA Title II), this report describes how the 50 states, the District of Columbia, Guam, Puerto Rico, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Department of the Interior (for children and teachers in schools operated for Indian children) utilized funds from the program in FY 1967 for the improvement of educational quality and opportunity through increased school library resources, textbooks, and other instructional materials. Three aspects are presented: (1) a financial report, showing expenditures by category; (2) a statistical report, providing data on personnel of the state education agencies and the Department of the Interior, children and teachers participating in the Title II program, and materials acquired; and (3) a narrative report, summarizing and evaluating the program, describing achievements made possible through Title II, and identifying problems. Some supplementary data from 30 states on special-purpose grants projects funded under ESEA Title II are included. Five amendments to the original title, provided by Public Law 89-750 are explained. (Author/JD)