The American education system is being challenged to raise the academic achievement of students to prepare them for the jobs of the future. Yet many demographic, as well as economic and social factors, are making the task more difficult. Low birth rates, especially among non-Hispanic whites, along with high immigration rates, have increased the share of minority and non-English students in public schools. The rise in single-parent families has increased the number of poor students and migration from the cities to the suburbs has concentrated poor and minority students in inner city schools. These same children will make up a greater share of the future labor force. At the same time, the aging of the general population may lessen the commitment of homeowners- -whose taxes pay between 1/3 and 1/2 of education costs. The aging labor force may bring a shortage of qualified teachers, particularly in specialized subject areas. Poor and minority students generally have below average academic skills and are more likely to drop out of high school than non-minority students. However, the skills of American students rank below those of most other industrialized nations, calling into question the ability of Americans to succeed in an increasingly international economic system. How can schools be improved and minority student achievement be enhanced? Reforms of education finance systems, court-ordered integration, and stiffer requirements for teachers and for graduation from high school are among many attempts to meet the immense challenges faced by American schools.