HUD examined 2 questions: what is the state of cities today? And second, what more can the Clinton-Gore Admin. do to prepare our cities to meet the economic & social challenges of the future? Three findings are discussed: (1) driven by a robust national economy, cities are fiscally & economically the strongest they've been in a decade; (2) despite recent gains, cities still face the triple threat of concentrated poverty, shrinking populations, & middle-class flight that began 2 decades ago; & (3) cities face 3 fundamental opportunity gaps -- in jobs, education, & housing -- that are critical to reducing poverty & attracting & retaining middle-class families.