Reported are the final regulations governing programs and projects for special education needs of gifted and talented children and youth pursuant to section 404 of Public Law 93-380. Summarized are the purpose of the regulations and comments and responses to the regulations, including changes. Presented are major provisions and assessment criteria information in the following five categories of program support authorized by section 404: (1) contracts for the development and dissemination of information pertaining to the education of the gifted and talented, (2) grants to State and local educational agencies for planning, development, operation, and improvement of programs and projects, (3) grants to State educational agencies for training teachers and supervisors, (4) grants to institutions of higher education or other agencies for leadership personnel training, and (5) contracts supporting model projects for the identification and education of special groups of gifted and talented children and youth. Also included are general provisions applicable to all awards; such as the definitions of "gifted and talented" and of "differentiated education", and requirements for identification and assessment. (IM)