This report describes library services for the blind and physically handicapped supported by the Library Services and Construction Act (LSCA), Title I, funds during fiscal 1985. Trends in library services for the blind and physically handicapped determined by an examination of reports from individual states are briefly summarized for the areas of circulation, acquisition of large-print books, radio reading services, automating services, volunteers, and children's programs. In addition, the need for and efforts toward automating library functions are described, and three noteworthy programs in Illinois, Texas, and Massachusetts are highlighted. Finally, a tabular summary of LSCA-funded services by state includes, for each project, the participating library, a brief project description, the amount of LSCA funding, the amount of non-federal expenditures, and total project expenditures. (KM)