Studies show Hispanics to have substantially higher rates of illiteracy than any other major population group in the United States. Illiteracy is one of a number of language problems for this population; other problems include limited oral English proficiency and native language illiteracy. Hispanics drop out of school in higher numbers and leave school earlier than any other population group. Illiteracy seriously hinders Hispanics' ability to become full participating members of society by limiting employment opportunity and access to other societal privileges. Current federal efforts to address the problem are inadequate in size and ineffective in reaching this population segment. Programs that have been effective are generally community-based, but there is inadequate funding for such efforts. To meet the literacy education needs of the United States, present activities must be expanded and must better target limited-English-speaking adults. (Author/MSE)