During the 2025 legislative session, Texas lawmakers allocated substantial funding to enhance special education services for students requiring additional support. These services are designed for students with intellectual, emotional, or physical disabilities. The funding initiative aims to address a significant gap of $1.7 billion between district expenditures and state allocations for schools catering to these students.
Federal law mandates that school districts evaluate students for special education services upon a parent’s request or a teacher’s recommendation. This evaluation process helps determine the level of assistance a student may require, leading to the development of an individualized education plan, or IEP. The IEP outlines specific therapies and accommodations necessary for each student to optimize their learning environment.
In the 2024-25 school year, Texas invested nearly $8.5 billion in services for students with disabilities, alongside an additional $365.1 million for dyslexia support. This translates to approximately $1,600 per public school student, according to data from the Texas Education Agency (TEA). Despite this significant investment, many school districts find that state funding falls short of covering the total costs needed to provide adequate services.
For example, Austin ISD allocated almost $170 million for special education but received only $96.6 million from the state for these services. The current funding formula has historically based allocations on the time students spend in specific classrooms, which can lead to inequities. Two students with different needs may receive identical funding, despite requiring varying levels of support.
Changes to this funding framework are set to take effect as part of a new law. In the previous legislative session, lawmakers passed House Bill 2, which earmarked $8.5 billion for education, including $1.3 billion for special education. This legislation introduces an eight-tiered funding model to classify students’ needs based on the complexity of their required educational or therapy services. Disability advocates believe this approach will ensure that funding more accurately reflects the specific requirements of students.
The number of students receiving special education services in Texas has risen dramatically in recent years. The TEA reported an increase from 442,476 students in 2014 to 846,876 in 2024. Currently, approximately 15.3% of Texas students require special accommodations, a significant rise from 8.5% a decade ago. This increase is partly attributed to improved reporting practices following a 2016 investigation by the Houston Chronicle, which revealed that the TEA had imposed an arbitrary cap on special education enrollment at 8.5%. The federal government subsequently declared Texas out of compliance with national standards in 2018, but the U.S. Department of Education confirmed in 2023 that the TEA had returned to compliance with special education laws.
As Texas continues to invest in special education, the focus remains on ensuring that students with disabilities receive the support they need to succeed academically.
