The National Science Foundation (NSF) released its first call for proposals for the National Science, Mathematics, Engineering, and Technology Education Digital Library (NSDL) program early in 2000. Building on work supported under the multi-agency Digital Libraries Initiative, this program aims to establish a national digital library that will constitute an online network of learning environments and resources for science, mathematics, engineering, and technology education at all levels. The "virtual facility" envisioned by the program is intended to serve the needs of students and teachers alike at all levels (pre-K through 12, undergraduate, graduate, and lifelong learning) by providing seamless access to rich interactive learning materials and resources, marked by the breadth and depth of the subject matter addressed, and valued for their authority and reliability. The NSDL will also enhance the services of existing libraries through the intelligent retrieval of relevant information, indexing and online annotation of resources, and archiving. The NSDL program features four tracks: Core Integration, Collections, Services, and Targeted Research. In fiscal year 2000, 89 proposals were received across these tracks requesting approximately 59 million dollars. In September 2000, 29 new awards were made, and in September 2001, grants were awarded to support 35 new projects. As the NSDL program begins its second full year of project support, there are numerous challenges and opportunities that present themselves. (Contains 10 references. A list of projects of particular interest to the ERIC community is also provided.) (AEF)