William Miller Usdane, 64, a psychologist and authority on job placment for the severely handicapped for the Dapartment of Health, Education and Welfare, died of cancer Friday at George Washington University Hospital.

Dr. Usdane, who joined HEW in 1963, was director of the bureau of demonstrations and manpower development in the Rehabilitation Services Administration. He was in charge of the training of rehabilitation personel and of the development of projects to improve rehabilitation services for the handicapped.

He began his career in 1946 with the Vaterans Administration in Seattle as a vocational adviser to neuropsychiatric veterans.

In 1950, he joined the Institute for the Crippled and Disabled in New York City, where he spent five years as director of vocational rehabilitation services. He then became head of the rehabilitation counseling department at San Francisco State University before joining HEW.

In 1962-63, Dr. Usbane was a Fulbright senior research fellow at the London School of Economics.

He was born in Seattle and earned bachelor's master's degrees from the University of Washington. In 1955, he earned a doctorate in rehabilitation psychology from New York University.

During World War II, he served with the Army Signal Corps in the Aleutians.

Dr. Usdane was affiliated with numeros professional organizations in psychology and rehabilitation and was a past president of Division 22 of the American Psychological Association.

In 1971, he served on the Preident's Commission on Services to the Severely Handicapped. He was president of Woodley House, a group rehabilitation home, in 1968-69, and was a member of the research board of the Easter Seal Foundation and the National Society for Crippled Children and Adults.

He received a number of distinguished service awards from rehabilitation and counselimg associations.

Survivors include his wife, the former Bernice Stusser, of the home in Germantown, Md.; a son, Mark, and a daughter, Lynn, both o f New York City; a sister, Eleanor Fine, of Seattle, and two grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the William M. Usdane Fund for the Study of Policy and Rehabilitation at New York University.