This document presents recommendations made to the Administration and Congress concerning future federal funding for vocational education and the staff report reviewing the federal role in vocational education. Part A lists recommendations for federal funds: (1) limitation to appropriations furthering the national interest, (2) use for program improvement and innovation, (3) use at secondary school level for remedial programs for raising functional literacy and employability, (4) use at postsecondary level for increasing accessibility to disadvantaged, (5) establishment of same requirements as for other programs, and (6) reaffirmation of sex equity. Chapter 1 of the report discusses federal interest in vocational education as indicated in the Vocational Education Act and by economic analysis. A summary follows of recent Commission research on the labor market effects of secondary vocational education and postsecondary training, comparing and contrasting results with those found in other studies. Chapter 2 reviews federal interest in occupational information, discusses strengths and weaknesses of techniques used in occupational forecasting, and considers vocational education's role in occupational labor markets. Chapter 3 examines coordination to determine legislative changes to facilitate linkages between the Comprehensive Employment and Training Act and vocational education programs. Concerns include developing a common goal, funding, joint planning, involvement with other organizations, and personnel interaction. (YLB)