Focusing on federal efforts to fight illiteracy through the Library Services and Construction Act (LSCA), Title I, this report describes some of the literacy projects that have been supported by LSCA funds, examines current literacy trends, and discusses some ideas for the future. The definition of literacy is considered, public libraries are discussed as outlets for literacy training, and the following aspects of LSCA literacy projects conducted during the 1980s are summarized: (1) general trends; (2) current developments in literacy materials and software; (3) teaching methods; (4) psychological factors; (5) current developments in program approaches, including one-to-one tutoring programs, community literacy programs, and technological literacy programs; (6) current developments in service to special groups, including family literacy programs, young adult programs, programs for the disabled, programs for the institutionalized, and programs for people with limited English-speaking ability; (7) rural literacy; (8) current developments in statewide coalitions; and (9) evaluation and research needs. Finally, a review of the efforts of public and private organizations to promote literacy campaigns emphasizes the need to move ahead to pursue new methods of meeting the literacy challenge. (KM)