The paper examines the continuing overrepresentation of minorities in special education programs for the mildly handicapped and their underrepresentation in programs for the gifted and talented. Alternative policy strategies are presented for advocates and decision makers concerned with reducing the increasing racial and ethnic disparities in special education. The legal, judicial, and educational history challenging the inequalities of tracking and special education classes for the mildly handicapped are reviewed. Among court decisions specifically addressed are the following: Larry P. v. Riles; Hobson v. Hanson; Mills v. Board of Education; and Lau v. Nichols. In addition, a list of cases addressing tracking after Brown v. Board of Education (1954) and after the 1975 enactment of the Education for All Handicapped Children Act is provided. The "myth" of the beneficial effects of special education is attacked on the basis of high dropout and unemployment rates for the disabled. The Larry P. and Lau cases are recommended as the bases for further challenges. (DB)