This document, a transcript of a House of Representatives subcommittee hearing on a Reagan Administration proposal, discusses consolidation of existing federal vocational and adult education programs, simplification of requirements for states and other recipients participating in federal vocational and adult education programs, authorization of certain state and national programs for the development of vocational skills and basic skills in the work force that will improve productivity and economic growth, and authorization of states to consolidate funding for such programs into block grants to the states in an attempt to increase efficiency and productivity. At the hearing, testimony and a prepared statement were given by T. H. Bell, U.S. Secretary of Education, and questions were answered by Dr. Robert Worthington, Assistant Secretary for Vocational and Adult Education. Secretary Bell and Assistant Secretary Worthington testified that their bill is designed to accomplish these four major objectives: (1) consolidation of existing vocational and adult education programs into a single, flexible program of grants to the states; (2) simplification and reduction of administrative burden at all levels of government, so that states can use more of their federal dollars to provide educational services to students; (3) enhancement of the role of vocational and adult education in assisting local, state, and national economic development; and (4) refocusing the federal role to concentrate on research, development, dissemination, demonstration, and other national leadership activities rather than on intervention in educational decision making at the state or local levels. They emphasized that the bill would cut through red tape, streamline paperwork, permit wider discretion to the states, and make it easier to harmonize the use of state and federal funds, while at the same time preserving the emphasis on vocational education and continuing to fund adult basic education programs. (The text of H.R. 2940 is included in the document.) (KC)