According to the U.S. Department of Education (2003), in 2002-03, the number of students with disabilities between the ages of 6 and 21 who were served under the Individuals with Disabilities Education Act (IDEA) was 5,946,202. About 80% of students with disabilities were educated in general education and resource room settings. In contrast, only 52% of students in the disability category of emotional or behavioral disorders were educated in those settings. Although schools have been successful in ensuring that students with disabilities have access to educational services, educational outcomes are still disappointing despite some improvement. Additional challenges include the availability of qualified personnel, making adequate yearly progress (AYP), and increasing litigation. School principals, as instructional leaders in an era of educational reform and No Child Left Behind Act (NCLB) mandates, are particularly concerned about addressing these interrelated challenges. The purpose of this review is to address legal and policy developments in special education, particularly in light of IDEA 2004 amendments and NCLB provisions.