Testimony given at a congressional hearing on the unique problems of urban and rural schools, the federal role in addressing these problems, and the availability of resources at state and local levels is presented in this report. Representative William Jefferson described the disadvantages of urban schools, compared to suburban schools, with respect to reaching the six national education goals for the year 2000. He spoke in support of the proposed Urban Schools of America Act (USA), which would fund urban school improvement at the local level, renovation of facilities, research and evaluation activities, technical assistance, and staff development. Lois Adams-Rogers, from the Kentucky Department of Education, discussed rural poverty in Kentucky, rural cultural influences on education, the special needs of rural education, the Kentucky Education Reform Act of 1990, and the need for federal aid. Dale Lestina represented Organizations Concerned about Rural Education (OCRE), whose goals are reforming rural school curriculum, developing rural schools as community centers, and promoting the role of rural schools in community economic revitalization. OCRE supported the proposed Rural Schools of America Act of 1991, which would fund early childhood programs, parent involvement activities, school-community linkages, capital improvement, and educational innovation. Superintendents from Tucson (Arizona) and Portland (Oregon) outlined the poor status of urban schools on the national education goals. Also included are charts of the share of statewide expenditures and poverty enrollment for 47 cities and estimated USA grants to eligible cities. (SV)