This report describes fiscal year 1989 activities of the Rehabilitation Services Administration (RSA) and other federal agencies in meeting the legislative mandates of the Rehabilitation Act of 1973. The first section of the report covers general provisions relating to the Office of the Commissioner, "American Rehabilitation" (RSA's quarterly magazine, the RSA task forces, the information clearinghouse and the evaluating procedures mandated under the Act. Ensuing sections cover: the Vocational Rehabilitation Services program; Client Assistance Program; American Indian Rehabilitation Services Projects; National Institute of Disability and Rehabilitation Research; rehabilitation training; the National Council on Disability; employment of handicapped individuals; architectural and transportation barriers; nondiscrimination under Federal grants and programs; the Interagency Coordinating Council; projects with industry; supported employment services; and independent living services. Appendices include a glossary of terms and data relating to federal and state expenditures, historical national trends and current activity by state agencies, characteristics of persons rehabilitated, post-employment services, ineligibility determinations, the client assistance program, client and applicant appeals, independent living services, and services to and outcomes for persons with severe disabilities and persons with non-severe disabilities. (JDD)