One major report after another shows that the United States needs a large, innovative, and effective adult education and workforce skills system. It is essential to the national security, economic stability, and democratic way of life. To address this need fully a leadership agency focused on a singular national goal is required, one with a legislative mandate to perform strategic planning and other coordination functions between and among federal agencies and public and private sector groups. Such an agency can accomplish its mission only if it is supported by a strong governance structure. The Council for Advancement of Adult Literacy (CAAL) proposes that the National Institute for Literacy (NIFL) be reauthorized with a new and broader mission, mode of operation, and governance structure, and that these transformational elements be clearly set forth in the reauthorizing legislation. This will effectively create a new agency (with a new name, National Institute for Adult Learning, NIFAL) in place of the current National Institute for Literacy. NIFL, as chartered by the 1991 and 1998 Acts, might have been an important agency in the adult education field, but it was handicapped from the outset. Redeveloped as discussed in this paper, NIFAL will be able to take on the essential and far larger task of building an adult education and workforce skills system to meet the nation's 21st Century needs. About the Authors and NIFAL Working Group are appended. (Contains 7 notes.)