Center for IDEA Fiscal Reporting

Center for IDEA Fiscal Reporting

IDEA Funding Navigator

The Individuals with Disabilities Education Act (IDEA) is a federal law that guarantees eligible infants, toddlers, children, and youth with disabilities access to a free appropriate public education designed to meet their unique needs in the least restrictive environment. Each year, Congress provides funding for IDEA through three main parts: Part B, Part C, and Part D.

By law, IDEA funds can only be used for purposes authorized under IDEA. This ensures that the money directly supports programs and services for children with disabilities.

Explore how funding flows from the federal government to the state and local levels with this interactive graphic.

Allocation of Federal IDEA Funds

Allocation of federal IDEA funds

Each year, Congress appropriates about $15 billion for IDEA—nearly one-fifth of the U.S. Department of Education’s discretionary funding—to support over 8 million infants, toddlers, children, and youth with disabilities nationwide.

Of total IDEA funding, generally:

  • About 95% supports Part B, which provides special education and related services for children and youth ages 3–21.
  • About 3% supports Part C, which funds early intervention services for infants and toddlers with disabilities and their families.
  • About 2% supports Part D, which funds national activities such as personnel preparation, technical assistance, and parent information centers.

Part B State Fiscal Requirements

Each year, states apply to the U.S. Department of Education’s Office of Special Education Programs (OSEP) for IDEA Part B Section 611 and Section 619 grants. Applications include fiscal assurances, state financial support amounts, and descriptions of how the state plans to use Section 611 set-aside funds. States must also have policies and procedures in place to monitor and enforce LEA fiscal requirements (see Part B LEA Fiscal Requirements).

State fiscal requirements include:

  • Maintenance of state financial support (MFS). States must make available state financial support for special education at or above the prior year’s level. See 34 CFR §300.163(a).
  • Subrecipient monitoring. States must monitor LEAs to ensure compliance with IDEA Part B requirements, including fiscal requirements, and to ensure timely correction of any identified noncompliance. See 34 CFR §300.600(a).

States must also follow applicable provisions of the Education Department General Administrative Regulations (EDGAR) and the Uniform Guidance in managing IDEA funds. See 34 CFR Parts 75–99 (EDGAR) and 2 CFR Part 200 (Uniform Guidance). This includes assessing factors that may increase the risk of noncompliance with requirements.

Part B LEA Fiscal Requirements

Each year, LEAs apply for IDEA Part B Section 611 and Section 619 subgrants from their state. The application includes fiscal assurances.

LEA fiscal requirements include:

  • LEA maintenance of effort (MOE).  Any LEA receiving Part B funds must budget and spend at least the same amount of local, or state and local, funds for the education of children with disabilities on a year-to-year basis. See 34 CFR §300.203(a).
  • Coordinated early intervening services (CEIS).  LEAs may—and are sometimes required to—use a portion of IDEA Part B funds for CEIS to help children who need additional support to be successful in school. The provision of CEIS can be voluntary or mandatory (known as comprehensive CEIS). See 34 CFR §§300.226 and 300.646(d).
  • Proportionate share.  LEAs are required to set aside a portion of their IDEA Part B funds to provide equitable services for eligible children with disabilities enrolled by their parents in private schools. See 34 CFR §300.133.
  • Excess costs.  LEAs are required to use IDEA Part B funds only for the additional (excess) costs of providing special education and related services, not for services that all students receive. See 34 CFR §300.202(b).
  • Supplement, not supplant.  IDEA Part B funds must add to (supplement), and not replace (supplant), state and local funds for special education and related services. See 34 CFR §300.202(a)(3).

Part C State Fiscal Requirements

Each year, states apply to the U.S. Department of Education’s Office of Special Education Programs (OSEP) for IDEA Part C grants. Applications include fiscal assurances and the planned use of Part C funds.

State fiscal requirements include:

  • Fiscal control. States must maintain effective control over Part C funds and ensure they are used properly, following sound accounting and recordkeeping practices. See 34 CFR §303.226.
  • Methods of provision and responsibility. States must have written policies that specify which agencies provide and pay for Part C early intervention services. These policies ensure that services are delivered promptly and funding responsibilities are clear. See 34 CFR §303.511.
  • Payor of last resort. Part C funds may be used only when early intervention services are not covered by other federal, state, or local funding sources. See 34 CFR §303.510(a).
  • Single line of responsibility. The state lead agency is responsible for ensuring all early intervention services under IDEA Part C are implemented; coordinating across agencies; and ensuring families receive needed services. See 34 CFR §303.120.
  • Supplement, not supplant. Part C funds must add to (supplement), not replace (supplant), state and local funds spent on services for infants and toddlers with disabilities and their families. This is also known as Part C maintenance of effort. See 34 CFR §303.225.
  • System of payment and fees. States may create a system of payments, including fees for certain services, as long as no family is denied services due to inability to pay. The system must describe which services are free and how insurance may be used. See 34 CFR §303.521.

States must also follow applicable provisions of the Education Department General Administrative Regulations (EDGAR) and the Uniform Guidance in managing IDEA funds. See 34 CFR Parts 75–99 (EDGAR) and 2 CFR Part 200 (Uniform Guidance).

Part B

IDEA Part B funds support special education and related services for eligible children and youth ages 3–21 through two state grants: Section 611 and Section 619.

Relevant authorities:

  • 20 USC §§1411–1419
  • 34 CFR Part 300

Part C

IDEA Part C funds help states build a coordinated system of early intervention services for infants and toddlers with disabilities (birth through age 2) and their families.

Relevant authorities:

  • 20 USC §§1431–1444
  • 34 CFR Part 303

Part D

IDEA Part D supports national efforts to improve education for children with disabilities through competitive grants for personnel development, technical assistance, technology, information sharing, and parent training centers. For examples of these competitive grants, see the IDEA website.

Relevant authorities:

  • 20 USC §§1450–1482
  • 34 CFR Part 304

Secretary’s reservation

From the amount appropriated for Section 611 for any federal fiscal year, the U.S. Secretary of Education reserves 1.226% for the U.S. Secretary of the Interior and not more than 1% for outlying areas and freely associated states. The Secretary may also reserve up to $25 million, adjusted for inflation, for national activities such as technical assistance, monitoring, and enforcement.

From the amount appropriated for Part C for any federal fiscal year, the Secretary reserves 1.5% for the U.S. Secretary of the Interior and not more than 1% for outlying areas. The Secretary also reserves 15% of the Part C appropriation that exceeds $460 million for state incentive grants to support states implementing the Part C extension option.

Relevant authorities:

  • 20 USC §§1411(b) and (c), 1443(a) and (b)
  • 34 CFR §§300.701–702
  • 34 CFR §§303.730–731

Section 611 grants to states

The 50 states, the District of Columbia, and the Commonwealth of Puerto Rico are eligible to receive IDEA Part B Section 611 grants. These funds support special education and related services for eligible children and youth ages 3–21.

After reserving funds for certain jurisdictions and national activities, the U.S. Department of Education distributes the remaining Section 611 funds to states using a statutory formula:

  • Each state receives the Section 611 amount it received in federal fiscal year 1999.
  • Of the remaining funds:
    • 85% is distributed based on each state’s share of the total population in the same age group as those who are served by Part B in each state (e.g., ages 3–21) and
    • 15% is distributed based on each state’s share of children living in poverty.

There are adjustments, minimums, and maximums, depending on whether the total appropriation decreases, stays the same, or increases from the prior federal fiscal year.

Relevant authorities:

  • 20 USC §1411
  • 34 CFR Part 300 Subpart G
  • 34 CFR §§300.700, 300.703

Section 619 grants to states

The 50 states, the District of Columbia, and the Commonwealth of Puerto Rico are eligible to receive IDEA Part B Section 619 grants. These funds support special education and related services for eligible children with disabilities ages 3–5.

The U.S. Department of Education distributes Section 619 funds to states using a statutory formula:

  • Each state receives the Section 619 amount it received in federal fiscal year 1997.
  • Of the remaining funds:
    • 85% is distributed based on each state’s share of children ages 3–5 and
    • 15% is distributed based on each state’s share of children ages 3–5 living in poverty.

There are adjustments, minimums, and maximums, depending on whether the total appropriation decreases, stays the same, or increases from the prior year.

Relevant authorities:

  • 20 USC §1419
  • 34 CFR Part 300 Subpart H
  • 34 CFR §§300.807–810

Part C grants to states

The 50 states, the District of Columbia, and the Commonwealth of Puerto Rico are eligible to receive IDEA Part C grants. These funds help states implement a coordinated system that provides early intervention services for infants and toddlers with disabilities from birth through age 2 and their families.

After reserving funds for certain jurisdictions and state incentive grants, the U.S. Department of Education distributes the remaining Part C funds to states based on each state’s share of infants and toddlers from birth through age 2. There are adjustments and minimums, depending on whether the total appropriation decreases, stays the same, or increases from the prior year.

States may allocate Part C funds, through contracts and subgrants, to local programs and providers to support the provision of early intervention services.

Relevant authorities:

  • 20 USC §1433
  • 34 CFR Part 303 Subpart H
  • 34 CFR §303.732

State set-aside

Each state may reserve a portion of its Section 611 and Section 619 grant funds for administrative and other state-level activities.

Relevant authorities:

  • 20 USC §§1411(e), 1419 (d)–(f)
  • 34 CFR §§300.704, 300.812–814

Subgrants to local educational agencies

Most IDEA state grant funds are distributed to local educational agencies (LEAs) as subgrants. After reserving funds for state-level activities, states must use a specific formula to flow through the remaining funds to eligible LEAs—including charter school LEAs—that apply for IDEA funds. Each Section 611 and Section 619 subgrant includes a base amount and additional payments, which are based on population and poverty.

Relevant authorities:

  • 20 USC §§1411(f), 1419(g)
  • 34 CFR §§300.705, 300.815–816

Base payments

Base payment amounts are determined by the amount the LEA would have received under IDEA if the state had distributed:

  • 75% of its federal fiscal year (FFY) 1999 IDEA Section 611 grant using the 1998 count of children with disabilities ages 3–21 in the LEA and
  • 75% of its FFY 1997 IDEA Section 619 grant using the 1996 count of children with disabilities ages 3–5.

Base payment amounts require adjustments under specific circumstances.

Relevant authorities:

  • 20 USC §§1411(f)(2)(A), 1419(g)(1)(A)
  • 34 CFR §§300.705(b)(1) and (2), 300.816(a) and (b)

Payments based on population

Of the funds remaining for each grant after the base payments, 85% flow to LEAs based on the relevant numbers of all children (with and without disabilities) enrolled in public and private elementary schools and secondary schools within an LEA’s jurisdiction, using the most recently available enrollment data.

Relevant authorities:

  • 20 USC §§1411(f)(2)(B), 1419(g)(1)(B)
  • 34 CFR §§300.705(b)(3), 300.816(c)

Payments based on poverty

Of the funds remaining for each grant after the base payments, 15% flow to LEAs based on the relative numbers of children living in poverty, as determined by the state educational agency, using the best data available.

Relevant authorities:

  • 20 USC §§1411(f)(2)(B), 1419(g)(1)(B)
  • 34 CFR §§300.705(b)(3), 300.816(c)

Administration

A portion of Section 611 and Section 619 state grants may be reserved for state-level administration. The maximum amounts and allowable uses of administration set-aside funds are defined in 34 CFR §300.704 (Section 611) and 34 CFR §300.813 (Section 619).

Section 611 funds may be used to

  • administer Section 611, Section 619, and Part C (if the SEA is the lead agency for Part C);
  • coordinate with and provide technical assistance to other programs serving children with disabilities;
  • administer an LEA high cost fund under 34 CFR §300.704(c); and
  • support early intervention services pursuant to 34 CFR §300.704(f).

Inflationary increases for Section 611 administration funds may also support direct services and activities such as positive behavioral interventions and supports; mental health services; personnel shortage assistance; and LEA capacity building.

Section 619 funds may be used to administer Section 619 and Part C and to coordinate with and provide technical assistance to other programs serving children with disabilities.

Relevant authorities:

  • 20 USC §§1411(e)(1), 1419(e)
  • 34 CFR §§300.704(a), (e), and (f), 300.812–813

Other state-level activities

A portion of Section 611 and Section 619 state grants may be reserved for other state-level activities. The maximum amounts and allowable uses of funds reserved for other state-level activities are defined in 34 CFR §300.704 (Section 611) and 34 CFR §300.814 (Section 619).

If reserved, a portion of Section 611 funds must support monitoring, complaint investigation, and mediation processes. Other allowable activities include:

  • Direct services and supports
  • Technical assistance and training
  • Personnel preparation and staffing support
  • Mental health services
  • Technology and transition programs
  • LEA high cost fund
  • LEA capacity building and service-delivery improvement
  • Accommodations and alternate assessments

Section 619 funds may be used for:

  • Direct services for preschool children with disabilities
  • State and local activities tied to performance goals
  • Part C coordination and broader early childhood systems support

Relevant authorities:

  • 20 USC §§1411(e)(2), 1419(f)
  • 34 CFR §§300.704(b)–(c), 300.814

For more information, see CIFR’s resource library.

In addition to CIFR, other technical assistance centers funded by the U.S. Department of Education that support IDEA fiscal requirements include: