Society's priorities and the history of federal activity with emotionally disturbed children are reviewed; the new Bureau of Education for the Handicapped is discussed; and the responsibilities of its three Divisions, Research, Educational Services, and Training Programs, are given. Expenditures for emotionally disturbed children are noted with the incidence of emotional disturbance mentioned as probably 2% of the school population. Problems of training teachers and administrators in higher institutions are outlined, including the lack of doctoral levels and difficulties in getting educators to clarify commitments to the handicapped. Emerging trends and issues discussed in the area of emotional disturbance are the cooperation of clinicians and educators, two separate definitions of emotional disturbance by educators and mental health specialists, abandonment of the medical model of disease and the special class model, expansion of the regular class teacher's knowledge, educational technology, a socially-psychologically orientated education cadre, recognition of civil liberties of deprived groups, and the concern of federal and state legislatures with emotionally disturbed children. (SN)