A report on two-year colleges is organized as follows: (1) introduction to the two-year colleges--why a report on two-year colleges, profile of two-year colleges (growth, enrollment, number and diversity), private two-year colleges, public two-year colleges, two-year college-business alliance, support and governance, role of two-year colleges, and non-traditional two-year colleges; (2) grants and funded projects in two-year colleges--funded projects of the American Association of Community and Junior Colleges, corporate contributions to two-year colleges, foundation grants to two-year colleges, and government funding of two-year colleges; and (3) areas of need and opportunity in two-year colleges (such as financial aid, curricular reform, bilingual/bicultural/minority/ethnic women's studies, specialized training, occupational education, improved guidance, remedial programs, and more responsive and individualized programs). A bibliography concludes the report. (KM)