The seven narrative reports featured in this publication detail the accomplishments, in seven key areas, of State Grant Programs (Titles I, II, and III) funded by the Library Services and Construction Act (LSCA). These descriptions of state and local library activities, demonstrating how libraries are meeting a variety of users' needs, are: (1) "Meeting the Literacy Challenge from a Federal Perspective" (Adrienne Chute); (2) "Library Services to the Blind and Physically Handicapped" (Clare De Cleene); (3) "Library Services to the Handicapped" (including the mentally retarded, hearing or speech impaired, emotionally disturbed, orthopedically impaired, or otherwise health impaired) (Clare De Cleene); (4) "Library Services to the Institutionalized" (including residents in state hospitals and correctional institutions) (Trish Skaptason); (5) "Library Services through Major Urban Resource Libraries and Metropolitan Public Libraries Which Serve as National or Regional Resource Centers" (Clarence Fogelstrom); (6) "Public Library Construction" (Donald Fork); and (7) "Interlibrary Cooperation and Resource Sharing" (Dorothy Kittel). The appended additional details and/or statistics for five of the seven reports include brief descriptions of individual projects in each of the states. The appendixes make up more than half of the document. (CGD)