The report discusses and recommends a taxonomy of ethnic terms for federal agencies to use when collecting, reporting, and maintaining data on race and ethnicity. Standardization is necessary so that whatever categories the different agencies use can be aggregated, disaggregated, or other wise combined so that the data developed by one agency can be used in conjunction with data developing by another agency. A brief introduction provides background information and describes the task of the Federal Interagency Committee on Education (FICE). Recommended categories of race and ethnicity are listed and factors considered in arriving at each heading and definition are discussed. The five basic, recommended racial categories include American Indian or Alaskan Native, Asian or Pacific Islander, Black/Negro, Caucasian/White, and Hispanic. The second part of the report established guidelines on how the proposed categories are to be applied in specific situations, presents two alternative ways to collect data using the suggested categories, and discusses subdividing the five basic categories into particular ethnic subgroups. Lastly, the document makes final recommendations that are endorsed by FICE. (Author/JR)