Federal Funding for Students with Disabilities

The Evolution of Federal Special Education Finance in the U.S.

In Federal Funding for Students with Disabilities: The Evolution of Federal Special Education Finance in the U.S., New America provides a history of special education financing in the U.S., and highlights the latest shift in the mission of the IDEA funding formula: a change from providing dollars directly based on the number of special education students, to ensuring the federal government provides sufficient resources for those students without encouraging the over-identification of children as requiring special education--mainly by cutting out financial incentives to do so. The report describes in detail the twists and turns of the decade-old federal IDEA formula still in use today, including several politically driven provisions that distort IDEA allocations on behalf of some states at the cost of funding for children in other states.

Furthermore, an analysis of New America’s Federal Education Budget Project data on federal special education allocations by school district revealed that the formula used to distribute federal IDEA dollars results in uneven per-child funding across school districts and states. Smaller districts, as well as districts within the smallest states, have higher median per-child spending. Similarly, districts that have seen declining enrollment since the base year of funding, which hasn’t been updated in well over a decade, receive higher average per-child IDEA allocations.

The first-of-its-kind analysis of school district-level special education grant allocations provides critical and previously unseen insights into the on-the-ground effects of lawmakers’ decisions in structuring the IDEA formula and in postponing its reconsideration. Furthermore, the report will be an important resource to policymakers, researchers, and advocates as Congress faces an upcoming debate over federal funding formulas in the IDEA reauthorization.

To read the full report, click here. For publicly available data on district-level allocations, download the file or look up your district at New America’s Federal Education Budget Project database. To view the full data files used in this analysis, download the folder.

Featured

  • Texas K–12 District to Build New Elementary, High Schools

    The High Island Independent School District on the Bolivar Peninsula in Southeast Texas recently announced that construction on a new elementary school and a new high school will begin in January 2026, according to local news. Funding will come from a $27.9-million bond passed in May 2025.

  • Upcoming University of Alabama Performing Arts Center Hits Construction Milestone

    The University of Alabama in Tuscaloosa, Ala., recently celebrated the topping out of its new Smith Family Center for Performing Arts, according to a news release. The university is partnering with HPM for program and project management on the facility, which broke ground in 2023 and is scheduled for completion in November 2026.

  • Longwood University Selects Builder for $73M Performing Arts Center

    Longwood University in Farmville, Va., recently announced that it has selected Swedish construction company Skanska as the builder of its new performing arts center, according to online news. The project involves the demolition of the current building and constructing a new, 64,500-square-foot facility.

  • South Texas K–12 District Debuts Region’s First Electric Bus Fleet

    The Valley View Independent School District in Pharr, Texas, recently announced a partnership with Highland Electric Fleets to launch the district’s—and the region’s—first fleet of all-electric school buses, according to a news release.

Digital Edition