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

  • UNH Marks Construction Milestone on Oceanic Exploration Facility

    The University of New Hampshire in Durham, N.H., recently celebrated a major construction milestone with a beam-signing ceremony for the new Center of Excellence for Operational Ocean and Great Lakes Mapping, according to a news release. The facility’s ultimate goal is to support research, training and technical assistance in ocean mapping.

  • Wenger Names New Vice President of Sales for Performing Arts, Controls

    Wenger Corporation, which provides products and solutions for music and theater education, performing arts and athletic storage, recently announced the hiring of a new Vice President of Sales for Performing Arts and Controls.

  • GeoCam and UCLA: Modernizing Campus Accessibility Mapping

    In early 2025, UCLA partnered with GeoCam to capture and modernize its pedestrian infrastructure data. The goal was ambitious but clear: to produce a high-accuracy, imagery-backed digital map of every sidewalk, pathway, ramp, and ADA-related feature on UCLA’s 419-acre campus.

  • Haws Corporation Marks 120th Anniversary

    Haws Corporation, which provides hydration and emergency safety solutions worldwide, recently announced that the company is celebrating its 120th anniversary this year, according to a news release.