This report details progress in providing education in the least restrictive environment to students with disabilities, based on hearings held by the National Council on Disabilities. Examples of successful inclusion education programs at the early childhood, elementary, and secondary levels are described. Strategies for promoting inclusive education are discussed, including enacting instructional and curricular changes, changing grading procedures, creative use of resources and personnel, collaborative planning, and staff training. The value of individual student plans, assistive technology, personal assistance services, and social support is addressed. The numerous barriers to inclusion at the federal, state, and local levels are considered, along with particular barriers faced by minority students with disabilities. The system of financing inclusive education and especially state financing rules are identified as major barriers to inclusion. Funding approaches that have facilitated inclusion in Pennsylvania and those that have encouraged segregation of students with disabilities in Illinois are discussed. Ways to improve teacher preparation and parent training to promote inclusion are considered, along with benefits of inclusion for the total school. Suggestions are also offered for improving student supports; removing administrative, policy, and financial barriers; and improving consumer and professional training. Appended is information on the hearings and on the participants. (SW)