The progress of the indicators project of the U.S. Department of Education is reported as a follow-up to a 1985 Department of Education publication, "Indicators of Education Status and Trends," which attempted to identify those items that could be considered as significant indices of the health of education in the United States. In addition to a working definition of an indicator, three categories of indicators are identified: outcomes, resources, and context. The indicators project has involved identification and assessment, analysis, and development. Identification and assessment involves search for data that meet the working definition of an indicator. Examples of surveys/studies that have produced indicators are considered, including the Fast Response Survey System, the National Assessment of Educational Progress, the Second International Mathematics Study, and the Gallup Poll. Examples of indicators that entail extensive analysis are also provided, including scores on the Scholastic Aptitude Test and the American College Testing Program. Development work of the indicators project has produced a new indicator, "school climate," and a major developmental effort has focused on postsecondary education indicators. Future directions for the indicators project are discussed. Appended is a summary of a November 1985 meeting of the Advisory Panel on Postsecondary Education and a list of advisory panel members. Tables and figures are provided. (SW)