Providing a summary of legislative activity in the First Session of the 104th Congress, this report describes the current status of legislation and appropriations of key interest to community colleges and the American Association of Community Colleges' (AACC's) position on these issues. Summaries are provided of 1995 Congressional activity in the following areas: (1) appropriations, including a table of appropriations for community college-related programs for fiscal year (FY) 1995; (2) funding for student loan programs, including cuts of $4.9 billion in the FY 1996 budget reconciliation bill vetoed by President Clinton; (3) legislation currently pending to consolidate almost 100 job training programs into block grants; (4) welfare reform, including the removal of provisions to factor the income of immigrants' sponsors into eligibility for federal programs, and student aid eligibility for legal immigrants; (5) National Science Foundation appropriations, indicating that $23.35 million was appropriated to the Foundation's Advanced Technological Education program; (6) funding for international education; (7) the effect of the telecommunications reform initiative on schools and colleges; (8) changes to the tax code; and (9) revisions to deregulatory initiatives on accreditation, state licensure, and certification of administrative and financial capability. AACC position statements included with each section indicate that it opposes any cuts for major federal loan programs affecting students and colleges, efforts to restrict student aid eligibility for legal immigrants and welfare recipients, and efforts to add additional standards to program eligibility for federal student aid funds for community colleges. (TGI)