A study examined the Federal Government's role in adult literacy. A far-reaching plan of action for the Federal Government was proposed that was based on an understanding of national literacy need and the structure and politics of Federal Government. The focus of the current national literacy movement was found to be seriously flawed in fundamental ways; without a stronger and different federal leadership role the overall effort would not meet the national need despite the best efforts of all currently involved. Although the need for the national literacy effort to remain focused on all the groups that are now being targeted was reaffirmed, adult illiteracy was seen as a largely economic problem and a higher priority for currently employed persons was urged. Six objectives for the Federal Government were identified: developing clear national goals and tracking progress toward them; building intellectual, political, and institutional focal points for adult basic education; focusing squarely on problems of adults and on work force literacy; generating large gains in basic skills and holding programs accountable; investing in technology and training; and building on existing services and knowledge. Recommendations were made regarding presidential leadership and legislative initiatives. Seventeen of the recommendations dealt with changes and additions in federal legislation. (YLB)