This report presents the Council for Exceptional Children's (CEC) analysis of the status of federal support for education of children with disabilities and/or giftedness, focusing on fiscal year (FY) 1996 appropriations and FY 1997 budget processes. Preliminary information includes a budget overview; a chart comparing appropriations, authorizations, administration requests, and CEC recommendations for IDEA (Individuals with Disabilities Education Act) components and for gifted and talented grants; and a table listing number of students by disability and percent change from 1993-1994 to 1994-1995. Narrative accounts from educators are presented to demonstrate the value and effectiveness of special education and related services. Most of the document consists of reports on the status of individual IDEA programs including federal appropriations, the authorizing provision, program purpose, who receives the funding, kinds of activities funded, recent funding history, funding considerations, CEC recommendations, and allocation by state. Reports are provided for the following programs: 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. (DB)