California’s $2.4 billion special education boost addresses critical needs, but challenges remain | EdSource
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Gov. Gavin Newsom’s May budget revision takes a significant step toward addressing California’s long-underfunded special education system. Building on his January proposal to equalize base funding rates between regions, Newsom added $1.8 billion to the $509 million he had already proposed, bringing the total proposed increase to $2.4 billion, 43% more than the prior year.
$2.4billion
the largest special education funding in California’s history, proposed in the governor’s 2026-27 May revision, a 43% increase over prior funding.
$341
the extra amount that school districts will receive in per-student funding — for all students — because of the boost from the proposed special education base rate under the governor’s budget, raising the statewide per-student funding from $999 to $1,340.
In the past decade, overall TK-12 enrollment in California has declined by 8%, while the number of students receiving special education services has grown nearly 20%. Educators and researchers point to several drivers for the increase of students who qualify for special education services: better identification of developmental delays and disabilities in early childhood, growing disability advocacy that has reduced stigma and pandemic disruptions that delayed early interventions.
15.4%
the share of California students qualifying for special education in 2025–26. As California’s TK-12 enrollment has declined by 8% over the past decade, the number of special education students has grown by nearly 20%.
Declining enrollment squeezes revenue for districts across all funding sources. At the same time, rising special education enrollment drives costs higher. Federal, state and local funding dedicated to special education together covered less than 40% of the costs over the past couple of years, leaving districts to draw on general funds and other unrestricted sources to pay for special education services.
62.8%
the share of special education costs that California districts covered with their own general funds or other unrestricted revenues in 2024-25.
Related Reading
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May 14, 2026
How the governor’s budget proposal addresses rising numbers of students in special education
February 4, 2026
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February 24, 2026
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Yuxuan Xie
Published
May 26, 2026
Gov. Gavin Newsom’s May budget revision takes a significant step toward addressing California’s long-underfunded special education system. Building on his January proposal to equalize base funding rates between regions, Newsom added $1.8 billion to the $509 million he had already proposed, bringing the total proposed increase to $2.4 billion, 43% more than the prior year.
the largest special education funding in California’s history, proposed in the governor’s 2026-27 May revision, a 43% increase over prior funding.
the extra amount that school districts will receive in per-student funding — for all students — because of the boost from the proposed special education base rate under the governor’s budget, raising the statewide per-student funding from $999 to $1,340.
In the past decade, overall TK-12 enrollment in California has declined by 8%, while the number of students receiving special education services has grown nearly 20%. Educators and researchers point to several drivers for the increase of students who qualify for special education services: better identification of developmental delays and disabilities in early childhood, growing disability advocacy that has reduced stigma and pandemic disruptions that delayed early interventions.
the share of California students qualifying for special education in 2025–26. As California’s TK-12 enrollment has declined by 8% over the past decade, the number of special education students has grown by nearly 20%.
Declining enrollment squeezes revenue for districts across all funding sources. At the same time, rising special education enrollment drives costs higher. Federal, state and local funding dedicated to special education together covered less than 40% of the costs over the past couple of years, leaving districts to draw on general funds and other unrestricted sources to pay for special education services.
the share of special education costs that California districts covered with their own general funds or other unrestricted revenues in 2024-25.
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