This analysis explicates the federal legislation which is the foundation for many bilingual education efforts in the United States today. The first section sets forth the political background that led to the passage of the Bilingual Education Act of 1968. This background information considers the experiences of the Hispanic population in the southwest, the American Indian, and the European immigrant. The history of restriction and tolerance of non-English-speakers is set forth. The second section is an examination of the existing bilingual education legislation set forth analytically, but with some attention to the evolution from 1968 to 1974 and then 1978. Breadth of coverage, purposes, program design, the allocation process, the application process for program grants, and program administration are discussed. The concluding section addresses the questions raised by Congress and recent reports which suggest future directions and issues for bilingual education. (JB)