S1288 Provide $5M For Special Education For High-Need Students

SUPPORT - This bill creates an Idaho High Needs Student Fund to reimburse local educational agencies for IEP-related expenses for students with disabilities whose annual expenses exceed $30,000, far beyond the support of typical special ed expenditures.

This bill makes small progress in addressing a shortfall in special education funding. The federal Individuals with Disabilities in Education Act guarantees children a free, appropriate public education. However, the federal government has never appropriated sufficient funds to cover the 40% of the costs that the law promises to the states leaving Idaho with an annual shortfall of $80 million to $100 million. An initial $5M has been appropriated for FY27, future funding requires further appropriations.

Reimbursement is capped as follows:

• Up to 100% of costs per student for expenses between $30,000 and $80,000

• Up to 80% of costs per student for expenses above $80,000

• Maximum payment of $100,000 per student

Up to 60% of the fund is reserved for non-rural local educational agencies with 40% reserved for rural local educational agencies. The Idaho Department of Education is reprioritizing the $5M to this bill from the Driver Training Account and interest from the Idaho Career Readiness Student Fund.

This legislation was signed into law on March 31, 2026.