During the past 5 years, groundbreaking studies of adult literacy and literacy education have been conducted that can help policymakers and practitioners shape the next generation of adult literacy work in the United States. Among the topics examined in those studies were the following: relationship between literacy and economic well-being; literacy instruction and measurement; workplace literacy and competitiveness; English as a second language; family literacy; professionalization and standards; and electronic technologies in education. It was discovered that, despite increased awareness of adult literacy as a social issue and increased enrollment in literacy programs, efforts to improve adult literacy have not yet brought the dramatic gains for which policymakers, the literacy community, or the public have hoped. Useful ways to improve the effectiveness and efficiency of adult literacy programs were identified, and specific recommendations concerning adult literacy practice, research, and policy were formulated. It was concluded that making major gains toward the goal of a fully literate United States will require the following: more funding of literacy efforts; better targeting of available resources toward improving customer service; tailoring programs to address diverse needs; and developing user-friendly educational technologies. (Contains 74 endnotes and 88 references.) (MN)