Technological literacy--computer skills and the ability to use computers and other technology to improve learning, productivity, and performance--has become as fundamental to a person's ability to navigate through society as traditional skills like reading, writing, and arithmetic. The Technology Literacy Challenge, envisioning a 21st century where all students are technologically literate, requires the fulfillment of four main goals: (1) all teachers in the nation will have the training and support necessary to help students learn to use computers and the information superhighway; (2) all teachers and students will have modern multimedia computers in their classrooms; (3) every classroom will be connected to the information superhighway; and (4) effective software and on-line learning resources will be an integral part of every school's curriculum. A partnership between the private sector, state government, local communities, and the federal government is necessary to achieve these goals. This report presents a framework that states and local communities can use in developing local plans of action that will support the use of technology in achieving high standards of teaching and learning in all classrooms for all students. The report includes sections on: Technology Literacy: A National Priority; Benefits of Technology Use; Reaching the Technology Goals; and Roles Supporting Local Action Plans. Appendices include: background information on how this plan was developed; a list of sources of federal support for technology in education, a state-by-state breakdown of state support for technology in education; and a list of sources for further information. (Contains 106 references.) (SWC) [Rescinded: This document has been formally rescinded by the Department and remains available on the web for historical purposes only.]