Federal Budget Cuts

U.S. Department of Education Staff and Budget Cuts

Parents have expressed concern about DOGE  (Department of Government Efficiency) staff and budget cuts to the U.S. DOE.

Although the situation is quite fluid, we expect minimal effect on children ages 5-21 who have an IEP, or should qualify for Special Education and an IEP.  The cuts so far mostly affect the following:

- Office of Civil Rights (OCR) staffing

- Future Research and Guidance

- Teacher training programs

- Head Start and other  specific programs

Congress funds the individuals with Disabilities Act ( I.D.E.A.) and these funds are distributed to the states, like NJ, in exchange for regulations that cover Special Education.  There is no current change to I.D.E.A. funding and NJ's special education regulations are unaffected.

Funding for Early Intervention (ages 0-3) and Preschool Children with Disabilities (age 3-5) could be affected in the future, but the timing is unclear and it is unclear, even if funding is withdrawn, what will happen in NJ.

Voucher Programs
Voucher programs are used in some states to fund tuition at private schools.  Education is funded at the state level with federal assistance. Private schools (including parochial schools, but not special education schools) do not have to accept students with disabilities and do not offer IEP's, though they can provide some  special education and related services and may be required to offer 504 plans if they accept any kind of federal funds.

Disability advocates are concerned about increases in vouchers or use of taxpayer funds for private schools, which reduce the cost to  parent who to send their children to private schools but reduce the enrollment and squeeze the budgets of public schools. The concern is that vouchers disproportionally and negatively affect students with disabilities.

It is not clear yet how possible changes in Federal Funding and regulations concerning may affect voucher programs in NJ.

Texas v. Becerra 

This is a federal lawsuit by 17 states in Federal District Court challenges the constitutionality of Section 504 of the Rehabilitatio Act of 1973. ("Section 504", or "504"). Section 504 applies to recipients of Federal Funds including public and many private schools as well most universities and many other  government agencies and private companies.

A companion law, the Americans with Disability Act (ADA), does not require receipt of Federal Funds and also applies to any place of public access, not just government or government entities  like public schools.

Section 504 conditions the receipt of any Federal Funds on compliance. It also provides for damages for failure to comply , generally limited to compensatory education (under the special ed law, I.D.E.A.) and potentially, out of pocket costs like attorney's fees.

The suit includes a claim that that the 2023 addition of "Gender Dysphoria" (a mental health condition in the psychiatric "bible", the DSM-V), to the definition of disability in Federal Regulations, was improper. 

Section 504 was originally intended to cover veterans returning from Vietnam. Since 1973,  the definition of disability was expanded to anyone with a physical or mental disability like ADHD, Anxiety, Depression, Learning Disabilities, PTSD),  that significantly affects a life skill, like learning.

The IDEA (Special Ed Law) uses the definitions in Section 504 and their implementing regulations to define a disability and a Free an Appropriate Public Education ("F.A.P.E").  Some students are covered only by 504 plans which are based directly on this law and the implementing federal regulations.

Federal courts take a long time to make a decision, and the decision can be appealed potentially up to the U.S. Supreme Court. A concerted effort by disabilty groups to oppose a unfavorable decision has begun.  It remains to be seen whether the Federal Courts will completely overturn a law, in effect for over 50 years,  that affects so many people. 

US DOE OSERS Furlough

Summary
90% of the staff at the Office of Special Education and Rehabilitation Services, which administers the Individuals with Disabilities in Education (I.D.E.A.) grants, were furloughed on October 11, 2025 by the White House.

For the reasons below, as long as the government shutdown does not continue for too long or the OSERS workers are rehired before the end of 2025, we do not expect any profound, immediate effect on Special Education at the school District level.

Details

The I.D.E.A. is the main federal Special Education law. State Special Education laws and regulations (e.g. N.J.A.C. 6A:14) are the result of the states agreeing to accept I.D.E.A  funds

The I.D.E.A. grants to all 50 states, including New Jersey,  also help fund Special Education services. The receipt of Federal funds, including these grants, are what requires the State of New Jersey and individual school districts to comply with Section 504 of the Rehabilitiation Act of 1973 ("Section 504") and the I.D.E.A.

Among other things, Section 504 defines Free and Appropriate Education (F.A.P.E.). F.A.P.E. applies to student with disabilities (e.g. 504 plans) and students with I.E.P.'s

I.D.E.A. grants for Federal FY 2026 (which started October 1) are distributed semi-annually. They were last  disbursed on July 1, 2025 (see the grants by NJ county and District here). Therefore, NJ and the individual Districts should have received their semi-annual grant for FY2026 and continue to have their obligations under Section 504.  As long the OSERS employees necessary to disburse the grant are promptly rehired (presumably after the government shutdown ends), the remainder of Federal FY2026 I.D.E.A. funds should be distributed in January 2026.

Other grants that affect education research, teachers, and other programs (including other programs that were previously cut, e.g. see U.S. DOE Staff and Budget Cuts above) are affected. Those grants may impact your child directly (if your child or school was in a program whose funds were cut), or indirectly (where the funds or U.S. DOE staff that administer the programs or disburse the funds, were reduced or eliminated).