The purpose of this paper is to examine the status of employment of people with disabilities in the Federal Government and to make recommendations for improving federal hiring and advancement of employees with disabilities. The paper summarizes the legal authorities and policy guidance, the responsibilities of various federal agencies charged with ensuring equal opportunity in federal employment, barriers to hiring and advancement, provisions for reasonable accommodations, and agency initiatives. The National Council on Disability has determined that despite laws, regulations, policy guidance, and excepted service hiring authorities designed to promote federal employment opportunities for people with disabilities, barriers to federal employment remain, and the number of employees with disabilities in the federal workforce is low. Recommendations for the Office of Personnel Management include: (1) Reduce the two-year probationary period for employees with disabilities under Schedule A to one year; (2) Require the Federal Equal Opportunity Recruitment Program to include data on employees with disabilities; (3) Establish mandatory training on targeted disabilities for all supervisors within Federal Government agencies; (4) Conduct a marketing campaign to encourage applicants with disabilities; and (5) Conduct a study of best practices in the Federal Government and develop a model program for hiring, retaining, and advancing people with disabilities. Recommendations for Congress include: (6) Request that the Government Accountability Office examine Schedule A employment for people with disabilities; (7) Request that the Government Accountability Office conduct a survey of federal supervisors; (8) Request that the Government Accountability Office study the effectiveness of the preference system for veterans with disabilities; and (9) Grant the Department of Defense Computer/Electronic Accommodations Program (CAP) the authority to include accommodations such as job structuring, telecommuting, and job-sharing. Recommendations for Job Seekers include: (10) Investigate employment opportunities in agencies with critical hiring needs and agencies that have shown a commitment to hiring people with disabilities. (Contains 96 endnotes.)