Based on information included in the annual reports from nine states, this report summarizes fiscal 1985 projects designed to provide library services for the handicapped that were supported by Library Services and Construction Act (LSCA) funds. Because 1985 was the first year states reported funding provided to the handicapped, some reports combined projects for the blind and physically handicapped and for the handicapped, and it was not possible to determine the funding provided to each separately for other states. A review of the nine state reports indicates that the predominance of effort by libraries in serving the handicapped patron has been toward the hearing impaired. Problems noted in serving the hearing impaired included lack of ability to communicate with the deaf, lack of technology to provide services to the deaf, and lack of resource materials necessary to provide full service; however, steps being taken to overcome these difficulties were also reported. A tabular summary of LSCA-funded programs by state provides, for each project, the participating library, a brief project summary, the amount of LSCA funding, the amount of non-federal expenditures, and the total project expenditures. (KM)