This fiscal year 1996 guide is designed to explain federal programs for children with exceptionalities and the needs that are met by each program. The guide begins with a budget overview; a table listing fiscal year 1995 appropriations, fiscal year 1996 authorizations, and Council for Exceptional Children (CEC) recommendations for several federal programs; and a graph showing changes in the distribution of specific disabilities for children ages 6-21 from 1976 to 1992. The guide presents "success stories" to help in visualizing the impact special education has on a child with a disability. Specific federal programs are then described, with the following information for each: appropriations, authorizing provision, purpose, who receives funding, kinds of activities supported, allocations by state, funding considerations, and CEC recommendation. Programs described include State and Local Grant Program, Preschool Grants, Early Intervention Program, Deaf-Blind Programs and Services, Regional Resource Centers, Programs for Children with Severe Disabilities, Early Childhood Education, Programs for Children and Youth with Serious Emotional Disturbance, Postsecondary Education Programs, Secondary Education and Transitional Services, Innovation and Development, Special Education Technology, Educational Media and Captioning Services, Special Education Personnel Development, Clearinghouses, Evaluation and Program Information, and Gifted and Talented Grants. (JDD)