Upcoming problems in special education funding for the 2025-2026 school year

Substantial Budget Cuts

There are significant changes coming in the new school year, 2025-2026 for public schools and special education. The Trump administration has paused billions of dollars in K-12 grants that many districts had already budgeted for in 2025 and 2026.  According to ABC News (Arthur Jones II, July 2, 2025) The Trump administration is, “pausing over $6 billion of congressionally appropriated federal funding for after-school, student support, teacher training, English language and other education programs.” Although the administration claims that statutorily mandated special education funding through the Individuals with Disabilities Education Act (IDEA) have been awarded to states on time, school budgets are usually approved in May or June and money is allocated by July 1st and students will be returning to the classroom while schools will still be uncertain about how the withheld funds will affect their schools. So, for example, English Language Learners (ELLs) may face reduced staff, or lose tutoring programs.  Children in afterschool programs could be unsupervised, or their parents may be forced to leave their jobs.

The summary of the 2026 Budget Request given by the U.S. Department of Education claims that, “overall, the Request includes $66.7 billion in new discretionary budget authority for the Dept. of Education, a $12 billion, or 15.3 percent reduction below the fiscal year 2025 appropriation, which reflects an agency that is responsibly winding down.” According to the Dept. of Education, IDEA will see multiple programs “collapsed” into a “single stream” reducing “targeted supports and accountability” (US Dept. of Education) that districts rely on for carrying out early-childhood education.

In addition to the funding challenges, civil rights enforcements are being rescinded to investigate more race-related issues and therefore fewer diversity, equity, and inclusion supports. This includes the expectation that there will be fewer resources and more workforce reductions.

In short, likely adverse consequences for public schools in 2025 and 2026 are staffing gaps (fewer teachers and support staff), delayed services, reduced preschool special education capacity, and slower access to civil rights remediation. Special education professionals I have interviewed anticipate a shock to special education support. Students with IEPs will likely struggle as districts reassign staff and services are compressed. Disabled and LGBTQ+ students will face confusion over bathroom policies as states give confusing directives. On the contrary, IDEA rights don’t fully attach in most private settings, so parents may not realize the tradeoffs when they choose private schools.

According to Mark Liederman (Edweek.org, June 9, 2025), The Trump administration has capped off an already agonizing and tumultuous period of funding instability for K-12 schools with a budget proposing to eliminate dozens of longstanding funding streams and slash billions of dollars in education investments.” The unfortunate students feeling the greatest effects will be English learners, migrants, unhoused students, Native students, and students in rural schools.

The new federal funding for special education will flow to states through a single funding stream. The problem with the single funding stream is that before the change, schools received a core set of dollars and then separate allocations for infants and toddlers, family resources, technology tools, and staff development. The smaller pool of money will now have to be divided up among these key, formerly funded programs. Two programs that would receive roughly level funding are Head Start and the National School Lunch program. However, “level funding is still a cut in support as inflation and the cost of labor increase costs.

Action Items for Parents and Guardians of Students with Special Needs

As the new school year begins amidst significant funding uncertainties and changes to federal protections, parents and guardians of students whose rights are supported by the Individuals with Disabilities Education Act (IDEA), Section 504 of the Rehabilitation Act, the Americans with Disabilities Act (ADA), and related civil rights statutes should take proactive steps to safeguard their children's access to education and services. Here are recommended action items to consider:

  • Review Your Child’s Current Plan: Obtain and closely review your child’s Individualized Education Program (IEP) or Section 504 Plan. Ensure all accommodations, services, and goals are clearly documented. If your child is in a private school, be aware that certain IDEA protections may not fully apply; ask about comparable services or supports.
  • Communicate Early and Often: Establish direct lines of communication with your child’s teacher, special education coordinator, and school principal. Share your concerns about staffing, service changes, or policy confusion and seek clarity on how your child’s needs will be met as districts adapt to new funding realities.
  • Monitor Changes and Advocate: Stay informed about any policy, staffing, or service changes affecting special education, accessibility, or civil rights protections. Attend school board meetings, parent advocacy groups, and district forums to voice community concerns and advocate for program transparency and accountability.
  • Document Everything: Keep detailed records of all communications with the school, meetings, notices, and any service interruptions or changes your child experiences. Written documentation may be critical in seeking recourse or filing complaints if rights are compromised.
  • Know Your Rights: Familiarize yourself with federal and state laws governing special education, disability rights, and civil rights in educational settings. Be prepared to cite IDEA, Section 504, and ADA mandates to ensure your child’s access to appropriate accommodations and services.
  • Seek External Support: Contact local and national organizations specializing in disability rights and education advocacy, such as Parent Training and Information Centers (PTIs), legal aid societies, or state protection and advocacy agencies. These groups can provide guidance, support, and representation if needed.
  • Prepare for Contingencies: In case of reduced staffing or delayed services, explore supplemental resources such as private tutoring, therapy options, or virtual support groups to help bridge gaps.
  • Encourage Self-Advocacy: If age-appropriate, help your child understand their rights and practice self-advocacy skills. Empowerment and awareness can help them navigate challenges and communicate their needs.
  • Monitor Bathroom Policies and Accessibility: Given the confusion over state directives affecting disabled and LGBTQ+ students’ access to facilities, inquire proactively about school policies and ensure they align with federal guidance and respect student dignity.
  • Stay Engaged Throughout the Year: Funding and policy changes may continue to evolve. Remain vigilant, responsive, and engaged with your child’s educational journey to ensure their needs are consistently met, and their rights upheld.

By taking these steps, families can help mitigate the impact of funding and policy shifts, as well as ensure that students with disabilities and related needs continue to receive the support, accommodations, and protections they deserve throughout the school year.

If you feel you might need help advocating for your child in this new era of scarcity, schedule a consultation with Cathleen Cullinan O'Neill, M.A. Cathleen is a senior paralegal with 18 years' experience teaching in a Massachusetts public high school. She has successfully supported hundreds of students with IEPs and 504s. Cathleen offers the unique and powerful combination of an insider view on how accommodations and the backing of a seasoned dispute resolution law firm.

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