This report summarizes the results of an issue validation activity regarding the provision of special education programs and services to students with disabilities in rural areas. Eight state directors of special education served on a communication panel to provide feedback on identified rural issues. They represented the states of Maryland, West Virginia, Texas, South Dakota, Maine, Utah, and New Mexico. The first section of this report characterizes rural America, with a discussion of definition, defining features, nature of the economy, employment and per capita income, and poverty. The next section identifies the population and characteristics of students with disabilities residing in rural areas. Section 3 describes the project's process in forming the questions and obtaining feedback on rural special education issues identified through a literature review. State directors agreed that the most prevalent issues for this population included the following: (1) recruitment and retention of personnel; (2) transportation; (3) language minority and limited English proficient students; (4) low incomes and poverty; (5) geographic isolation; (6) declining economies including high rates of unemployment; (7) financial burden of unfunded or underfunded state and federal mandates; (8) competing priorities; (9) poor fiscal management; and (10) parent involvement. Additional financial support was the most common recommendation of state directors. (Contains 28 references.) (DB)