To amend the Education of the Handicapped Act to clarify that, in exceptional circumstances, certain damages may be awarded in actions brought under part B of such Act as procedural safeguards with respect to a free and appropriate education of handicapped children.

Amends the Education of the Handicapped Act to provide that, in exceptional circumstances, the recovery of costs incurred in providing an appropriate education for a child may be included in any award of damages recovered against a State in certain actions, including Federal actions, brought as procedural safeguards for the free and appropriate education of handicapped children.