The July 1996 issue of the Natural Hazards Observer (p. 10) noted the formal announcement -of the new National Earthquake Loss Reduction Program (NEP). This new program builds upon-but does not supplant-the National Earthquake Hazards Reduction Program (NEHRP), which is legislated by Congress. Sincere the formal announcement, several significant events have transpired. The Federal Emergency Management Agency (FEMA), which has 'lead agency' responsibility for the NEHRP and the NEP, has created a National Earthquake Program Office as part of its Mitigation Directorate. The NEP office director reports directly to the associate director for mitigation. In June, the NEP agencies held a two-day retreat at the National Institute of Standards and Technology in - Gaithersburg, Maryland, to begin strategic planning. This effort builds on the Office of Science and Technology Policy report that recommended establishment of the NEP, as well as other reviews of the NEHRP in the past several years. The group drafted goals for the NEP and two sets of objectives; one for the NEP office and one for the NEP as a whole. The agencies reconvened in early October to consider the results of these efforts. Soon, the proposed goals and objectives will be shared for comment by the many nonfederal groups interested in - earthquake hazards reduction.