This speech begins with praise for the Subcommittee's past action in furthering the education of the handicapped and encouraging federal assistance for these children. The growing need for additional aid for preschool education to meet the developmental needs of handicapped children is emphasized. Also discussed are the sparseness of government programs in the above area, the expertise and leadership of the Bureau of Education for the Handicapped (BEH), and the pressing needs of children living in handicapping environmental conditions. It is recommended that (1) programs be established for the identification and aid of handicapped children, (2) such programs be administered by the BEH, (3) projects be awarded to any agency that demonstrates its capability to serve handicapped children, (4) such projects demonstrate coordination with existing child development and handicapped children services, (5) typical projects should offer several services (including diagnosis, preparation of educational prescriptions, and a communication network), (6) these objectives be met by expansion of the Handicapped Children's Early Education Assistance Act or by specific inclusion in other bills, and (7) cost be defrayed by federal and state funds. (MH)