This document offers a plan for the education of Texas' homeless children and youth. Front matter includes staff lists, federal assistance support documents, and material on the program's background. Discussion of the plan begins with a section which defines such terms as "school age,""homeless children and youth," and "free and appropriate education." The next section, which addresses issues identified in the previous state plan, covers homeless children's difficulties in: (1) enrolling in school due to problems concerning prior school records, immunizations, screening, residency, and guardianship; (2) choosing schools; (3) obtaining transportation; (4) obtaining school clothes, textbooks, and supplies; and (5) accessing special programs and services. Also considered are homeless children's academic needs; physical and mental health needs; and dropout rates. Other topics include difficulties with data collection; parent awareness and dispute resolution; interagency coordination; domestic violence; and educator awareness and sensitivity. A section on new issues identifies such problem areas as awareness of, and sensitivity toward, homeless students on the part of students who are not homeless; lack of after-school, before-school, and summer programs for homeless students; and schools in shelters. Appendices include supporting documents of legislation, guides, reports, hearings, and other reference materials. (SH)