The paper explores policy options for beginning, expanding, or establishing services for disabled and at-risk infants and toddlers in a state. An initial section outlines characteristic advantages and drawbacks of options in three areas: legislative action (mandatory, phase-in, and non-mandatory legislation), executive action, and interagency agreements. Considerations in policy planning are examined, including the population to be served, agency responsibilities, personnel, and procedural safeguards and accountability. Questions are posed regarding the planning process as well as the content of policy and/or legislation, with suggestions offered to avoid common pitfalls. Appended materials include a reference list, a profile of states' mandated age of eligibility for preschool elementary school special education services, a matrix summarizing state legislation, a chart of state agencies responsible for educational services to handicapped preschool children, a chart summarizing the current status of all states on major special education dimensions (including state consultant names and phone numbers), and a synopsis of states by federal program networks. (CL)