The document results from part of the Policy Options Project which identified and analyzed policy issues related to the delivery of appropriate services to preschool handicapped children and their families in terms of the need for assuring appropriate services, the factors affecting such policies, and policy approaches for the implementation of appropriate early developmental programs. Chapter I dicusses the benefits of early intervention for handicapped children and their families in terms of child, family, societal, and economic values; and analyzes existing policies regarding their effectiveness in assuring early intervention. Among conclusions drawn from the literature review and policy analysis are that early intervention has been documented as beneficial to society and the number of handicapped preschoolers and families needing but not receiving appropriate services cannot be precisely determined at this time. Chapter II addrsses five major policy areas which influence the development of early intervention services: defining the population to be served, delineating the scope of the services to be provided, designating the service provider, determining the nature of the policy, and identifying funding and resource availability. Final recommendations are that a lead agency be established to coordinate services and develop a coordinated public awareness campaign, that the state should develop standardized data collection and grant application techniques and due process safeguards, and that the stage should enact mandatory early intervention legislation granting universal access to services. Appended are position statements and a chart of ages of eligibility. (SBH)