This hearing was held to receive testimony related to H.R. 3042, the Dropout Prevention and Reentry Act, which would initiate a new Federal program of grants to school districts to mount demonstration programs. The programs would focus on the following: (1) identifying high risk students and preventing them from dropping out; (2) encouraging youth who have already dropped out to reenter school; and (3) developing model systems to collect information on the numbers of dropouts and their reasons for leaving school. The bill authorizes $50 million for fiscal year 1987 and such sums as necessary for the three succeeding years. Statements and materials by 27 witnesses are included. Comments focused on the following points: (1) the alarming numbers of dropouts in urban areas, and among minority groups and the disadvantaged; (2) the need for a uniform definition of "dropout"; (3) consequences of dropping out in unemployment, crime, and welfare assistance; (4) lack of knowledge about which programs are effective; (5) the importance of public-private partnerships in dealing with the problem; and (6) dropout characteristics. Witnesses were unanimous in support of the bill. (PS)