Fed. disability programs remained grounded in outmoded concepts that have not been updated to reflect the current state of science, medicine, technology, and labor market conditions. In addition, the Social Security Admin. (SSA) and the Dept. of Vet. Affairs (VA) faced mgmt. challenges, esp. with their disability claims processing. Further, disability experts have expressed concerns about the level of coordination among the many fed. agencies that provide benefits and services to individuals with disabilities. This report determines: what steps SSA and VA have taken to modernize their disability programs; and to what extent SSA and VA coordinate with other fed. agencies that provide services to individuals with disabilities. Includes recomm. Illus.