Presented is the annual (1974) report of a project for the investigation and application of behavior analysis and modification with handicapped children. The program project is designed to assist teachers in the following areas: curriculum for mildly/moderately handicapped children being served in regular classes and for severely handicapped children in special classes, appropriate instructional procedures, instructional materials and program packages for children with a wide range of handicapping conditions, and measurement and assessment procedures. Major sections are given to the work of three teams--a team concerned primarily with developing a curriculum for use with handicapped children who are in regular classrooms, a team focusing on curriculum for children with moderate to severe handicaps, and a team to develop detailed task analyses for various basic skills and specific instructional programs for various basic skills. Seven papers are included to describe the work of team 1 on curriculum research including topics such as placing the child in the right reader, the improvement of oral reading and comprehension, and the effects of reinforcement contingencies on computational arithmetic performance. Considered is the work of Team 2 in the areas of measurement, administrative management decision system, intake-return-followup, establishing criteria performance levels, and instructional procedures. Included for Team 3 is information on the prototypic model and programs such as making change, telling time, fastening clothes, and shoe tying. (DB)