In 2008, the Center for Digital Education (CDE) conducted a review of state policy and programs to determine the status of online learning policy and practice across the United States. CDE interviewed state education officials across the nation to evaluate the overall landscape of online learning. The rankings reflect the vision, policies, programs and strategies that states have deployed around online learning in an effort to transform their academic environment to meet the needs of students. Certain characteristics deemed to have a greater impact on statewide leadership and education (such as states with state-led online programs and/or significant policy directives) played a more significant role in the rankings than others. CDE has observed that states and school districts are increasingly aware that students are spending more time online than ever before. In response, states are pursuing online education initiatives to better serve their student population and meet the academic demands of students inside and outside of rural areas. School districts continue to be challenged to maintain high levels of academic achievement with decreased funding. Online education enables districts to draw from a larger teacher talent pool and serve students who are geographically dispersed. To date, fifteen states have taken significant steps in online education and have implemented state-led programs. States without online learning programs appear conscious of the trend and are evaluating the feasibility of implementing such programs. CDE concludes online education will continue to expand in the United States as states and school districts continue to face the challenges of meeting student achievement levels, finding qualified teachers and preparing students for careers in science, technology, engineering and mathematics. Individual state analyses are appended. (Contains 1 endnote, 5 figures and 52 tables.) [This report was underwritten by Blackboard and Pearson Education and produced with the advice and consultation of the Council of Chief State School Officers (CCSSO) and the North American Council for Online Learning (NACOL).]