California Gov. Gavin Newsom on Thursday signed AB 126, the education trailer bill for the state budget, directing an additional $2.4 billion to K-12 special education. The package raises per-student support and channels both ongoing and one-time funds to programs serving students with significant and low-incidence disabilities and to initiatives that support inclusive classrooms and postsecondary transition pathways.
What the funding changes
The action increases statewide special education funding by about 43% relative to the 2025 Budget Act and raises the per-student allocation to $1,340. State lawmakers designed the changes so all local educational agencies are eligible to receive special education dollars at a common rate.
"I've heard directly from parents across California: their kids need more, and they deserve better. These actions answer that call."
The 2026 state budget includes both ongoing and one-time investments intended to expand services and supports for students with disabilities:
- $80 million ongoing for the extraordinary cost pool and the low-incidence disabilities add-on to help cover high-cost services.
- $30 million one-time for the Supporting Inclusive Practices Project to increase access to general education classrooms.
- $25 million one-time for the Inclusive College Technical Assistance Center to expand postsecondary opportunities for students with intellectual and developmental disabilities.
- $10 million one-time to develop resources and technical assistance for alternative pathways to a high school diploma for students with disabilities.
What parents, students and districts should know
The funding increase changes how districts are funded for special education but does not itself prescribe program details. Local educational agencies will need to align budgets, staffing, and services to the higher per-student rate and the new targeted pots of money. Districts that serve students with more costly needs stand to benefit from increased access to the extraordinary cost pool and the low-incidence add-on, while the one-time grants are aimed at expanding inclusive practices and transition supports.
| Allocation | Type | Purpose |
|---|---|---|
| $80 million | Ongoing | Extraordinary cost pool & low-incidence disabilities add-on |
| $30 million | One-time | Supporting Inclusive Practices Project |
| $25 million | One-time | Inclusive College Technical Assistance Center |
| $10 million | One-time | Alternative diploma pathways resources |
Districts and families should watch for guidance from the California Department of Education about distribution timelines, application processes (if any), and allowable uses of the one-time funds. Schools will need clear instructions to translate increased funding into classroom supports, staffing, assistive technology, curriculum adaptations and transition services.
For parents and guardians, a few practical next steps include contacting your district's special education office to ask how the new funds will affect local services, monitoring school board and district budget meetings for decisions about allocations, and asking whether the district will offer new inclusive programs or expanded postsecondary transition services supported by the one-time grants.
The legislation represents one of the largest single-state investments in K-12 special education funding in recent years and aims to strengthen services across California’s diverse districts, from large urban systems to small rural agencies.
