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

  • Photo credit - Chuck Coates

    Florida District Modernizes Central Energy Plants at Two High Schools

    Flagler Schools, a public school district in Flagler County, Fla., recently partnered with Matern Professional Engineering to modernize the central energy plants at two of its high schools, according to a news release. The project is part of a larger, district-wide effort to reduce energy costs and operational expenses.

  • golden trophies with falling confetti

    Spaces4Learning Launches 2026 New Product Awards

    Spaces4Learning is happy to announce that we’re now accepting entries for the 2026 New Product Awards! The awards program recognizes the outstanding product development achievements of manufacturers and suppliers whose products or services are considered particularly noteworthy.

  • Health & Science Building

    Health & Science Building

    Established in 1999, the Education Design Showcase is a vehicle for showing off innovative — yet practical — solutions in planning, design, architecture, and construction. The College of Western Idaho's Health & Science Building has been recognized with an EDS 2026 Project of Distinction award in the category of New Construction.

  • Stanford Online Reveals New Immersive Learning Studio

    Stanford Online recently marked its 30th anniversary with the announcement of a new immersive learning studio, according to a university news release. The studio takes advantage of AI-powered and immersive learning technologies to continue delivering personalized and faculty-led education.