SACRAMENTO – Continuing the Governor’s work to bolster the state’s education system and create a stronger learning environment for all students, Governor Gavin Newsom signed AB 126, the education trailer bill for the California state budget that allocated an additional $2.4 billion for special education funding. The legislation builds on billions invested to expand access to Governor Newsom’s historic transitional kindergarten, $215 million invested last year to boost child literacy through Literacy Coaches and the Reading Specialists Grant Program, and the state’s pioneering effort to provide free school meals for all students – reflecting the state’s ongoing commitment to invest in and improve instruction and services for all students, including students with disabilities. 

This $2.4 billion increase in special education funding — a 43% increase from the 2025 Budget Act — ensures all local educational agencies in the state can receive special education funding at the same rate and will increase the per-student rate to $1,340. These investments contrast with the Trump administration’s dismantling of the Department of Education, an action that directly affects the quality of educational services available.

The 2026 State Budget includes a historic $80 million in ongoing funding for the special education extraordinary cost pool, which provides reimbursements to special education local plan areas for students with specified high-cost service needs, and the low-incidence disabilities add-on, which provides additional funding to support students with rare, highly specialized needs. The Budget also provides a one-time increase of $30 million for the Supporting Inclusive Practices Project, which provides resources to schools and educators to expand access to the general education environment for students with disabilities.

The Budget includes a one-time $25 million increase for the Inclusive College Technical Assistance Center. The Center facilitates collaboration between local educational agencies and institutions of higher education to expand inclusive college opportunities for students with intellectual and developmental disabilities, help those students develop life skills, and model inclusive postsecondary education communities.

The Governor’s Budget provides a one-time investment of $10 million to develop resources and provide technical assistance to support the implementation of alternative pathways and alternative means to a high school diploma for students with disabilities.

 (Photo source: Gavin Newsom’s Newsroom)