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Yes, children with IEPs are receiving special education services. The point is they are still required to take these tests, even though only 7% may be expected to pass them, and failing the test (or to a lesser degree, fighting to be allowed to opt out of it) leads to very real consequences for both the students and their teachers.
Standardized testing is not the only way, but it is currently the default way to have national standards. But the testing itself very much gets in the way of actual learning, and then when the children aren't doing well the justification is that we need stricter standards, and more frequent testing. All of which is designed and sold to the state by corporations, not actual teachers.
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