This document examines policy issues related to preparing educators to work with diverse learners, including students with disabilities. It begins by discussing the growing emphasis on accountability for all students and general education and special education as a unified system. Strategies that states are using for teacher recruitment and preparation are explored, as well as approaches used by schools of education. Key areas for teacher education reform are then identified and include: (1) the need to ensure student teachers have appropriate clinical experiences with a range of students; (2) the need to ensure that all teacher candidates, including those from traditionally underrepresented groups, have the skills needed to pass teacher licensure tests, and for a broad consensus among various education specializations to support a balanced and complete curriculum for teacher education; (3) the need to ensure that performance assessments measure the extent to which teacher candidates demonstrate their ability to work with diverse students; (4) the need to consider diversity and preparation in using a variety of instructional strategies when planning and implementing performance pay incentives; and (5) new policy approaches to alternative licensing to ensure that teachers are prepared to serve children with disabilities in the regular classroom. (CR)