A bill to amend the Education of the Handicapped Act to provide for comprehensive education programs for severely and profoundly mentally retarded children.

Authorizes the Commissioner of Education, under the Education of the Handicapped Act, to make grants to public or private nonprofit institutions which work with profoundly mentally retarded children in order to develop comprehensive education programs and inservice training programs for teachers and parents. States that, in determining whether to make a grant under this subsection, the Commissioner of Education shall give priority to programs aimed at reducing the dependence of profoundly mentally retarded children on custodial care.

Provides that such a grant shall be made only if the Commissioner determines that: (1) there are no requirements that participants in the program possess self-help skills; (2) no children would be excluded from the program because such child has in addition to mental retardation, one or more handicapping conditions; (3) that there are no standard accreditation requirements governing selection and training of personnel in the program; (4) the teacher-child ratio is at least one to six; and (5) Federal funds shall be used solely to supplement and not to supplant State, local, and private funds.

Authorizes the Commissioner of Education to keep State educational agencies fully informed about the various programs for severely profoundly mentally retarded children. Requires the Commissioner to seek to achieve an equitable distribution of such programs throughout the nation.