This paper assesses federal legislation and programs affecting community-based services for independent living for people with disabilities. Independent living entitlement programs are contained in Title VII of the Rehabilitation Act of 1973, and include comprehensive services, centers for independent living, and independent living services for older blind individuals. Legislation also covers community-based services for persons with mental retardation and for persons with mental illness, and social security programs affecting all persons with disabilities. Federal programs have been created to develop independent living options for persons with severe disabilities, mental retardation, and mental illness. There is a need for additional independent living research, education, and professional training. Expenditures for long-term care facilities and services, intermediate care facilities, community-based residential facilities for mentally impaired individuals, and community-based independent living programs are analyzed, and the costs and benefits associated with community-based independent living services are noted. Recommendations are proposed for legislative amendments and revised funding support to promote the availability of community-based services for independent living. Forty-four references are listed. (JDD)