Presented is an overview of the first 150 years of federal legislation and funding for the handicapped. Seventeen terms are defined and the position of the Bureau of Education for the Handicapped within the federal structure is examined. The congressional process of authorizing federal funds for special education is explained and 50 specific federal laws are described. Special education funding for fiscal years 1978 and 1979 is also discussed and future trends pertaining to financing of special education are considered. (BD)