The controversy over minimum competency assessment has special implications for the handicapped, since federal law requires that handicapped students must be afforded equal educational opportunities. Problems will arise in establishing criteria of competence and in administering minimum competency programs for students with learning disabilities. One method for delineating the testing methods and for clarifying exemptions from testing for handicapped children is the use of individualized education programs (IEP). A survey of the minimum competency regulations in 26 states showed that twelve made reference to IEP and how it was to be employed. Discussion of the application of IEP within the minimum competency movement considered: (1) competencies the students are to attain proficiency in; (2) the level of proficiency to be expected; and (3) specifications of any alternative instructional/testing strategies. Competencies that the students are not expected to attain should also be outlined. (FG)