This National Council on Disability (NCD) report describes the nation's progress in advancing public policies to increase the inclusion, empowerment, and independence of people with disabilities of all ages, consistent with the vision of the Americans with Disabilities Act of 1990. The report covers December 2000 through December 2001. It reviews federal policy activities by major issue areas, noting progress where it has occurred, and making recommendations. Progress is evaluated in the following areas: (1) disability statistics and research; (2) civil rights; (3) education; (4) health care; (5) long-term services and supports; (6) youth; (7) employment; (8) welfare reform; (9) housing; (10) transportation; (11) assistive technology and telecommunications; (12) international issues; and (13) homeland security. On education, the report concludes that despite widespread noncompliance with the Individuals with Disabilities Education Act (IDEA), the U.S. Department of Education has made only limited use of enforcement through its sanction authority. NCD recommends that Congress authorize and fund the Department of Justice to investigate and litigate IDEA cases independently. NCD also recommends that the IDEA budget appropriation include a 10% set-aside provision for complaint processing. Part 2 of the report describes major activities of the NCD for fiscal year 2001. (Contains 130 references.) (CR)