The State Educational Technology Directors Association (SETDA) is pleased to release its fifth annual National Trends Report on the use of federal funds to support educational technology. This report documents findings from Round 5 (FY 06) of the No Child Left Behind, Title II, Part D, Enhancing Education Through Technology (NCLB IID) program. The findings in the Round 5 report are based on surveys from 50 states and the District of Columbia, representing 15,962 local education agencies (LEAs) and the federal NCLB IID dollars allocated across the United States in FY06. Data from the first four annual National Trends Reports for Rounds 1-4 are included for comparisons. In Round 5, the respondent states and the District of Columbia awarded 1,096 competitive grants and 11,407 formula grants that together with the funds allocated for SEA program administration (5% or less) represent $253 million in funds expended at the state education agency (SEA) level. This year's SETDA National Trends Report is about scaling back, prioritizing, researching, leveraging, and expanding successful practices. Eight major trends were noted related to the funding, administration, implementation, and evaluation of the federal NCLB IID program: (1) The Cuts to NCLB IID Funding Go Deeper; (2) States Are Facilitating High-Quality Research; (3) Academics Continue To Be Top Priority for NCLB IID; (4) Integration is Critical to Developing Technology Literacy; (5) State Policies Scale Effective Practices; (6) Progress Through Leadership and Professional Development; (7) Wanted: Digital Content and Digital Learning Environments; and (8) Leveraging Data-Informed Decision Making. These eight trends strongly indicate that the states are working with their local school districts to design and implement programs that directly support the NCLB IID goals. One of the most positive trends reported in Round 5 was the growing number of states conducting research studies on programs funded through the NCLB IID federal investment. While the number of studies is limited--due, in part, due to the lack of NCLB IID funds allocated for research--the study findings are generally positive. Appended are: (1) NCLB II D Goals and Purposes; and (2) NCLB II D Local Activities. (Contains 10 figures and 9 tables.) [For the 2007 edition of this report, see ED537541.]