In Southeastern Community College v. Davis (1978), the U.S. Supreme Court ruled that Section 504 of the Rehabilitation Act of 1973 did not require institutions receiving federal funds to make substantial modifications in their programs or bear undue financial burdens to accommodate disabled individuals. The case involved a hearing-impaired applicant, who was denied admission into a nursing program at Southeastern Community College because her disability would prevent safe clinical practice, an essential part of the curriculum. The court held that while discrimination against a qualified handicapped person solely on account of handicap is prohibited under section 504, it does not impose an affirmative-action obligation requiring colleges to disregard disabilities and admit unqualified students into health programs where clinical practice is necessary for qualification.

In the dissenting opinion for Southeastern Community College v. Davis, Justice Thurgood Marshall argued that Section 504 of the Rehabilitation Act should be interpreted more broadly to protect individuals with disabilities from discrimination. He contended that the majority's narrow interpretation was inconsistent with Congress' intent when it passed this legislation and would undermine its purpose by allowing institutions to avoid making reasonable accommodations for disabled persons. Furthermore, he disagreed with the majority's view that accommodation equates to affirmative action; instead, he saw it as a necessary measure to ensure equal opportunity for all citizens regardless of their physical abilities or conditions. Justice Marshall also criticized the court’s decision because it failed in providing clear guidance on what constitutes "reasonable" modifications under Section 504, leaving too much discretion in hands of potentially biased administrators.