This report on the impact of the Vocational Education ACT (VEA) on special needs populations in vocational education examines the structure of the VEA, the state and local contexts in which the law is implemented, and the problems of serving special populations that the mechanisms are attempting to address. Outlined first are the goals and role of the VEA as they pertain to special needs populations. Various aspects of state behavior and implementation of the VEA are discussed, including funds administration, reporting on use of funds and on coordination with other laws, evaluating the results of additional services, other state agency activities, and policy implications. Covered next are the following aspects of local implementation of the VEA definition, identification and placement of handicapped, disadvantaged, and limited English proficient students; strategies for serving each of these special needs populations; planning and reporting activities; and policy implications. Reasons behind the limited impact of the VEA are discussed, including the multiple goals and administrating agencies of the VEA, differences between state and local contexts in which the law is implemented, and problems in serving special needs populations. Also included in the report are recommendations pertaining to possible structural changes in the VEA. (MN)