California Adds $2.4 Billion to Special Education Funding

Saratoga, California — California will pour an additional $2.4 billion into special education under a budget trailer bill signed this week by Gov. Gavin Newsom, the largest single increase of its kind in state history.

The legislation, AB 126, raises special education funding by 43% compared with the 2025 Budget Act. It sets a uniform per-student rate of $1,340 so that every local educational agency in the state receives funding on the same basis, and it directs more support to students with the highest needs.

The 2026 state budget also includes $80 million in ongoing funding for the special education extraordinary cost pool and the low-incidence disabilities add-on, plus a one-time $30 million boost for the Supporting Inclusive Practices Project, which helps schools include students with disabilities in general education classrooms. The investment builds on the state's transitional kindergarten expansion, literacy grants, and free school meals program.

Saratoga, in Santa Clara County, is a city of about 32,000 in the heart of Silicon Valley and served by several Bay Area school districts.

I've heard directly from parents across California: their kids need more, and they deserve better. These actions answer that call. Today, we are making record investments in special education, to build a stronger system that gives every child the opportunity to succeed and leaves California's schools better than we found them.

Newsom contrasted the state's approach with the Trump administration's dismantling of the U.S. Department of Education. State education leaders said the funding will mean more reading specialists, behavioral health aides, and one-on-one support in classrooms for students with disabilities.

Sources

https://www.gov.ca.gov/2026/07/09/governor-newsom-signs-historic-investments-to-bolster-support-for-special-education/