This testimony about how federal requirements affect local school districts focuses on three major issues: (1) the major federal requirements that affect school districts; (2) the issues school districts face in implementing these requirements; and (3) recent initiatives by the Congress and the Department of Education (DOE) to provide flexibility to school districts. To obtain information on the impact of federal requirements, the General Accounting Office (GAO) interviewed officials from 87 school districts, located primarily in 3 states--Massachusetts, Pennsylvania, and Louisiana. The GAO also interviewed representatives from federal and state agencies and from 15 major education associations. In addition, the GAO analyzed federal laws, regulations, and program guidance, as well as district and state documents and data from the DOE. The study focused on the 36 major federal programs and mandates that school district staff, education experts, and the literature identified as having a major impact. School districts are subject to a large number and a wide variety of federal requirements that reflect a variety of purposes and goals.(DFR)