Students with emotional and behavioral disorders (EBD) consistently lag behind their peers academically and behaviorally, are likely to be excluded from school, drop out more frequently, and face higher incarceration rates and a host of other negative outcomes as adults. Federal policy has played a key role in (a) ensuring that students with disabilities are included in schools, (b) requiring schools to meet the unique needs of learners, and (c) providing funding to support the development and implementation of evidence-based practices. Our purpose in this article is to examine the progress and challenges related to the development of federal policy supports for students with EBD, and to offer recommendations to help guide the future development of policy. Specifically, we (a) recognize the important developments of the last 30 years in policy protections and funding for students with EBD, (b) identify current challenges and emerging opportunities in several areas related to the identification and support of students with EBD, and (c) offer policy recommendations related to strengthening the use of the functional assessment and personnel capacity development.