Special Education Finance and Funding

States and districts face growing pressure to ensure that special education funding systems are transparent, sustainable, and responsive to student needs. When special education funding systems are operating effectively, they can help ensure students with disabilities have what they need to make progress and thrive.

AIR partners with education agencies nationwide to analyze special education costs, evaluate funding formulas, and develop data-driven approaches that improve how resources are allocated to support students with disabilities.

Our work helps policymakers and education leaders answer critical questions such as:

• How much does it cost to provide high-quality special education services?
• Are current funding levels sufficient to support effective services and programs?
• How are special education dollars being spent across districts and schools?
• Do funding formulas direct resources to the students and services they are intended to support?
• How can funding systems better support effective educational practices?

Drawing on decades of expertise in education finance, special education policy, and resource allocation, AIR provides rigorous analysis and practical guidance that help states and districts make informed funding decisions.

What We Do

AIR helps states and districts understand how special education resources are generated, distributed, and used, and whether current funding systems are sufficient to support high-quality services for students with disabilities.

Our work combines rigorous cost analysis, expenditure studies, and funding formula evaluation to help education leaders and policymakers better understand the real costs of providing special education and related services.

Our Approach

We analyze how much states and districts spend on special education services, where resources are directed, and what factors drive variation in spending across schools and districts.

Evaluating Resource Use and Service Delivery

We examine how staffing, teaching approaches, and service delivery approaches shape resource use and spending patterns. Our analyses help states and districts identify whether resources are aligned with effective practices and student needs.

Assessing Funding Adequacy and State Appropriations

We estimate the funding levels required to support high-quality special education programs and evaluate whether current state appropriations are sufficient to meet those needs. Our work helps policymakers understand the relationship between funding levels, district capacity, and service quality.

Designing and Evaluating Funding Formulas

We evaluate how special education funding formulas distribute resources across districts and student populations and whether funding systems effectively target dollars to areas of greatest need. We help states develop and refine funding formulas that support transparency, sustainability, and evidence-based practices.

Supporting Policy and Funding Decisions

We provide actionable analysis and practical guidance to help states strengthen special education funding systems, improve resource allocation, and support better outcomes for students with disabilities.

Tools and Resources

The following resources for states and districts seeking guidance on special education funding systems, cost analysis, and resource allocation will be published in the Fall of 2026:

National Policy Scan of State Special Education Funding Formulas
A comparative analysis of how states structure and implement special education funding systems.

How to Build a State Special Education Funding Formula
Guidance for policymakers and education leaders designing or redesigning state special education funding systems.

Evaluating Special Education Costs
Frameworks and methodologies for estimating the costs of providing special education and related services.