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This report presents an update of the progress of Tapping America’s Potential (TAP), a coalition of 15 of the nation’s leading business organizations, and assesses three years’ progress since 2005 in working towards the goal of doubling the number of students earning bachelor’s degrees in science, technology, engineering and math (STEM) by 2015. The report finds that since the initial TAP report that was issued three years ago, 2002-2006 data have become available that show U.S. STEM bachelor’s degrees awarded in that period fall short of what will be required to reach 400,000 by 2015. While the number of STEM degrees awarded has remained relatively flat for three years, the policy changes the business community has called for to attract and retain more undergraduate STEM majors have not been enacted. Congress has authorized, but not yet funded, the expansion of science and engineering research and STEM education programs that will make STEM majors more attractive to undergraduates. Private-sector demand for STEM graduates has increased and may help pull more students into these majors. The latest STEM workforce data show that, in 2006, the already low unemployment rate for STEM graduates dropped to 2.5 percent, and starting salaries were higher for students graduating with STEM degrees, particularly those with engineering degrees, than for most other majors. In addition, there is a desperate need for STEM majors to teach math and science in U.S. schools. Research indicates that a highly qualified teacher is one of the most important factors in raising student achievement, yet according to the Bureau of Labor Statistics, school districts across the country have difficulty hiring qualified math and science teachers. An appendix provides examples of progress on specific TAP recommendations. (Contains 1 footnotes.) [Cover title varies: “Tapping America’s Potential: The Education for Innovation Initiative. Gaining Momentum, Losing Ground. Progress Report, 2008.”]