This progress report reviews federal policy activities toward the inclusion, empowerment, and independence of people with disabilities consistent with the vision of the Americans with Disabilities Act of 1990 (ADA). The report covers the period of November 1, 1997, through October 31, 1998. It notes progress where it has occurred and makes further recommendations in the following areas: (1) disability research; (2) civil rights; (3) education; (4) health care; (5) long-term services and supports; (6) immigrants, and racial and ethnic minorities with disabilities; (7) Social Security work incentives and Social Security solvency; (8) employment; (9) welfare to work efforts; (10) housing; (11) transportation; (12) technology; and (13) international issues. The review indicates that the rate of progress is slower and less steady than many in the disability community had hoped when ADA was enacted into law, and that federal policy remains rife with inconsistent messages and unrealistic requirements for people with disabilities who rely on federal programs like Social Security disability benefits, vocational rehabilitation, Medicaid, Medicare, special education, and Temporary Assistance for Needy Families. In addition, it warns that the backlash against civil rights for children and adults with disabilities continues to motivate attempts to weaken disability laws. (CR)