In order to provide special education programs that are responsive to the needs of Navajo students and in order to comply with the Rules and Regulations of Public Law 94-142 (The Education for All Handicapped Children Act) and Public Law 95-561 (Education Amendments of 1978), the information in this handbook provides guidance to teachers and administrators who are charged with educating handicapped Navajo students to their full potential. The handbook is divided into 12 chapters about: the special education process; eligibility criteria and programming considerations for the deaf and hearing handicapped, deaf-blind, homebound or hospitalized, mentally handicapped, multihandicapped, orthopedically impaired, other health impaired, seriously emotionally disturbed, specific learning disabled, and speech impaired; the Individualized Education Program; procedural safeguards; teacher performance standards; memoranda; coding information; and allowable costs and Element 18 applicable components. Appendices offer guidelines for reviewing assessment procedures and psychoeducational reports, identification of bias in testing, an accessibility checklist, a staffing guide for programs for the handicapped, directions for completing a LEA appplication, and proposed rules and regulations for PL 95-561 and PL 94-142. (ERB)