This study focused on federal policy for education of students with disabilities. Assuming that principals occupy a pivotal policy implementation role, this analysis centered on selected elementary principals' discourse about Least Restrictive Environment (LRE) clause in the federal Individuals with Disabilities Education Act (IDEA). The study used a vertical discourse analysis looking from federal policy documents and case law through state and local guidance documents and finally into principals' responses to open-ended interviews. These principals exhibited caution in their attempts to interpret LRE. They enforced a distance between regular and special education, ultimately yielding their political agency to others.