Although competency-based adult education (CBAE) has been practiced by teachers for centuries, the term was defined more fully and formal programs were developed around 1971. One of the prime forces in the growth of CBAE was the Adult Performance Level (APL) project at the University of Texas, a project that defined CBAE and produced suggested categories of the skills needed for adult functional literacy. Research through the years produced a list of characteristics of competency-based instruction, including explicit objectives, methods and criteria for achievement; alternative modes for reaching objectives; relevance to job or task analysis; continuous evaluation feedback; and individualized instruction. At present, CBAE is being implemented in some form in at least two-thirds of the states. Many of the programs focus on teaching life-coping skills as well as job skills. In addition, a Federal CBAE network has been established to link practitioners and keep researchers up to date. Today, there is increased recognition of the problem of functional illiteracy in this country, as evidenced by increased media attention, the Secretary of Education's initiative on adult literacy, and the influence of CBAE on the following: (1) vocational, correctional, military, and General Educational Development programs; (2) programs of the American Association for Adult and Continuing Education; and (3) products of commercial publishers. (KC)