The 1976 Education of All Handicapped Children Act (Public Law 94-142) mandates the provision of appropriate educational services for handicapped children. Educational services to confined handicapped delinquents, however, have been inadequate. The situation can be improved if correctional administrators take advantage of the reimbursement formulas for service to the handicapped. Public Law 94-142 guarantees the right of all handicapped children to a free and appropriate education. Public Law 89-313 is a formula grant program that assists in the transition of handicapped students from institutions back to the community. Public Law 99-178 and Public Law 99-177 Chapter 1 grants are designed to meet the needs of disadvantaged children, and the Carl Perkins Vocational Education Act authorizes the use of Federal monies to support programs for the handicapped. Examples of appropriate use of funds authorized under the aforementioned legislation are to purchase materials, supplies, and equipment; to hire specialists to coordinate the identification, assessment, and placement process; and to support the work of vocational specialists, aides, and paraprofessionals. 13 references.