The State Educational Technology Directors Association (SETDA) is pleased to release its fourth annual National Trends Report on the use of federal funds to support educational technology. This report documents findings from Round 4 (FY 05) of the No Child Left Behind, Title II Part D, Enhancing Education Through Technology (NCLB II D) program. The findings in the Round 4 report are based on surveys from 50 states and the District of Columbia, representing 16,073 Local Education Agencies (LEAs) and the federal NCLB II D dollars allocated across the United States in FY05. Data from the first three annual National Trends Reports for Rounds 1, 2, and 3 serve as baselines. In Round 4 the respondent states and the District of Columbia awarded 1,469 competitive grants and 14,107 formula grants that together with the 5% of administrative support funds expended at the state level totaled $462,201,231. For the first three years, Congress funded the NCLB II D program at approximately $600 million for the 50 states plus the District of Columbia. That number has been decreased in Round 4 to approximately $462 million. The fourth year of NCLB II D was characterized by a 28% reduction in funds, more stringent guidelines for competitive grants, and the emergence of evaluative data on a host of programs that states report to be effectively advancing the NCLB II D goals. NCLB funds in Round 4 were reported to be more focused on evidence-based practices by means of Request for Proposal (RFP) priorities set by the states and more carefully evaluated or researched programs, again through policies and practices set by the states. NCLB brought with it increased accountability and focus. It is ironic that just as states are beginning to report significant findings from the NCLB II D investment, Congress made substantial reductions in NCLB II D funds for Round 4 (FY05). Despite the reductions, the findings for Round 4 suggest that, not only are the states implementing the NCLB II D program as prescribed by law, but that such programs, when implemented with fidelity, do advance the NCLB goals. Appended are: (1) NCLB II D Goals and Purposes; and (2) NCLB II D Local Activities. (Contains 16 figures and 4 tables.)