This report documents the problem of educating students with serious emotional disturbance, reviews the legislative and administrative background, and identifies seven strategic targets in a national agenda for these children. Data for these students on academic outcomes, graduation rates, school placement, school absenteeism, dropout rates, encounters with the juvenile justice system, and identification rates of students of varying socio-economic backgrounds support the magnitude of the problem. The legislative and administrative background includes Part C of the Individuals with Disabilities Education Act and activities of the Office of Special Education Programs. The report then discusses the following seven interdependent strategic targets: (1) expand positive learning opportunities and results; (2) strengthen school and community capacity; (3) value and address diversity; (4) collaborate with families; (5) promote appropriate assessment; (6) provide ongoing skill development and support; and (7) create comprehensive collaborative systems. Three cross-cutting themes are also stressed: first, collaborative efforts must extend to initiatives that prevent emotional and behavioral problems from developing or escalating; second, services must be provided in a culturally sensitive and respectful manner; and third, services must empower all stakeholders and maintain a climate of possibility and accountability. (CR)