This report to the President and Congress provides an overview of digital libraries. The following related findings are discussed: the full potential of today's digital libraries to support the national challenge transformations has not yet been realized; the federal government can and should do much more to further the science, technology, and creation of digital libraries; libraries, museums, archives, and holders of other digital library collections face significant technical and operational challenges as they migrate to and maintain their holdings in digital form; and intellectual property rights need to be addressed in order to facilitate the creation of and access to digital libraries. The following recommendations are presented: support expanded digital library research in metadata, scalability, interoperability, preservation, intellectual property rights, privacy/security, and human use; establish large-scale digital library testbeds; the federal government should provide the necessary resources to make all public federal material persistently available in digital form on the Internet; and the federal government should play a leadership role in evolving policy to deal fairly with intellectual property rights in the digital age. (Contains 77 references.) (MES)