A bill to amend the Education of the Handicapped Act to provide for educational services to handicapped individuals of all ages.

Amends the Education of the Handicapped Act ("the Act") to provide for postsecondary education programs and for secondary education and transitional services for handicapped individuals.

Authorizes the Secretary of Education to make grants to or contracts with institutions of higher education (including junior and community colleges, vocational and technical institutions, and other appropriate nonprofit educational agencies) to develop and operate specially designed programs of postsecondary, vocational, technical, continuing, or adult education for handicapped individuals. Directs the Secretary to make such grants and contracts on a competitive basis and to give priority consideration to model centers and programs for individuals with handicapping conditions: (1) for developing and adapting programs of postsecondary, vocational, technical, continuing, or adult education to meet the special needs of handicapped individuals; and (2) for programs that coordinate, facilitate, and encourage education of handicapped individuals with their nonhandicapped peers. Directs the Secretary to make grants or contracts for a national clearinghouse on postsecondary education for handicapped individuals.

Authorizes the Secretary to make grants to, or enter into contracts with, institutions of higher education, State education agencies, local education agencies, and other appropriate public and private nonprofit institutions or agencies for: (1) services to assist handicapped individuals in the transition to postsecondary education, vocational training, competitive employment, continuing education, and adult services; and (2) programs for secondary education, including specially designed vocational programs for competitive employment and research and development projects for exemplary service delivery modeling, replication, and dissemination. Sets forth types of projects which may be assisted by such grants and contracts. Requires an evaluation of such secondary education and transitional services to be submitted to appropriate congressional committees by January 1986.

Defines "handicapped individual," for purposes of the postsecondary education programs and secondary education and transition services, as mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or other health impaired persons, or persons with specific learning disabilities, who by reason thereof require special education and related services.

Requires that the results of the Secretary's evaluations under part C (Centers and Services to Meet Special Needs of the Handicapped) of the Act be analyzed and submitted to the appropriate congressional committees.