Intended for policymakers, this brief addresses issues related to computer technology and its contributions to special education. Trends are noted and three types of applications are considered: computer assisted instruction, computer managed instruction, and computer support activities. Descriptions of several computer applications in local and state education agencies are provided, including references for further information. Tables illustrate the range of administrative information capabilities of the computer in regular and special education administration. An annotated bibliography is included that cites technology periodicals and Special Education Program projects. The instructional applications of CAI (including drill and practice, simulation and games, and computer literacy) are considered and instructional benefits and drawbacks such as immediate feedback and the difficulties some handicapped children have with reading and typing are noted. A final section focuses on human and organizational issues (such as resistance to change, teacher training, and equity) and on technical issues (cost, accommodations, courseware, and hardware). (CL)