The status of handicapped children in Head Start programs is discussed in this annual report to the Congress of the United States. Chapter 1 provides an overview of Head Start policies on services to handicapped children. Chapter 2 reports on the number of handicapped children enrolled, types of handicapping conditions, and severity of handicaps. Chapter 3 describes services provided by Head Start and other agencies to and for handicapped children, including outreach and recruitment, diagnosis and assessment, mainstreaming and special services, training and technical assistance, coordination with other agencies, and summer Head Start programs. Appended to the report are results of the Survey of Head Start Handicapped Efforts in 1979-80 Full Year, as well as tables showing the distribution of special services and educational programs for parents and children broken down by handicapping conditions. (RH)