Handy was elected to the U.S. House of Representatives in 1896, defeating incumbent Republican U.S. Representative Jonathan S. Willis. During this term, he served in the Democratic minority in the 55th Congress. Seeking reelection in 1898, he lost to Republican John H. Hoffecker, a Smyrna businessman and relative of his wife. In all he served from March 4, 1897 until March 3, 1899, during the administration of U.S. President William McKinley. Subsequently, Handy remained active in politics, attending the Democratic National Conventions of 1900, 1904, and 1908, and losing an election for state Attorney General in 1904. He ran for U.S. Representative one more time, in 1908, but lost to Republican William H. Heald.