High school exit exam requirements are affecting a growing number of U.S. students--particularly low-income students and students of color. This article examines the policy and legal landscape of exit testing policy to shed light on some of the key issues facing local school leaders charged with implementing these policies. The article first analyzes federal and state court cases related to exit testing and examines the conditions under which courts have permitted and bounded their use. It then discuses the broader legal and legislative environment that has affected leaders' ability to respond to exit testing requirements. The article concludes with implications of high-stakes exit testing and policy considerations for local leaders as well as state policymakers.