Signed into law in May 1994, the School-to-Work Opportunities (STWO) Act provides states and communities with funds to develop systems that connect academic knowledge with technical skills and workplace competencies. The Act links the Goals 2000: Educate America Act with workforce and economic development and is designed to help the nation prepare for the effects of technological changes. STWO differs from previous efforts in that it is driven by technological changes and does not establish federal mandates, allowing states to distribute funds and design local systems. Community colleges are poised to become major players in school-to-work initiatives because of their strong community links and experience with occupational and customized training, with over three-fourths of the colleges involving students in work-based learning as of 1993. Strengths of the colleges' work-based programs include strong program leadership, strong connections with the business or industry, the inclusion of school-based learning components, and diverse funding sources. STWO will present challenges, however, for two-year colleges, including the use of state- rather than federal-based funding, the need for alternative schedules other than semesters, and conflicts between credit and non-credit courses. Although community colleges are effective at delivering workforce training, the opportunity to secure the lead in STWO must either be used or it will be quickly lost. (HAA)