Providing a summary of legislative activity in the First Session of the 105th Congress, this report describes the current status of legislation and appropriations of key interest to community colleges and presents the American Association of Community Colleges' (AACC's) position on these issues. Summaries are provided of 1997 Congressional activity in the following areas: (1) budget and appropriations for fiscal year (FY) 1998 for federal higher education, job training, and other programs; (2) reauthorization of the Higher Education Act, indicating that final action was postponed until 1998 and including a letter from the AACC advocating the reauthorization or termination of specific provisions; (3) workforce education and training, reviewing efforts to consolidate funding for adult job training, applied technology, and adult education; (4) welfare reform, including a newsletter from the AACC reviewing provisions of the 1996 welfare legislation and related provisions from the 1997 budget reconciliation process; (5) National Science Foundation appropriations, indicating that $29.2 million was requested for the Foundation's Advanced Technological Education program; (6) funding for international education; (7) educational assistance provided through new tax policies, including provisions of 1997's Tax Payer Relief Act that have implications for community colleges; and (8) provisions for educational institutions to obtain special rates for telecommunications technology per 1996's Telecommunications Act. For each issue, an AACC position statement and contact are provided.(BCY)