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TEA released new guidance today outlining the transition to a service intensity-based special education funding model under HB 2, providing a much-anticipated update on the significant shift in how districts will be funded and establishing key timelines for implementation. The new model moves away from the current instructional arrangement-based system and instead relies on the average minutes per day students receive special education services.
Here are some key points included in TEA's release:
- During the 2026-27 SY (and only during that year), school systems must report special education participation via PEIMS using both the prior law instructional arrangement approach and the new law service intensity approach. The new law service intensity information for each student must be reported through PEIMS by the end of the first 6-week attendance submission.
- During the 2026-27 SY, the agency will not be able to provide final information on the funding levels associated with the service intensity approach until the end of the SY, creating greater uncertainty with regard to the level of additional special education funding a school system can expect to receive under the new approach.
- Given this, during the 2026-27 SY, the agency’s implementation of statute will ensure that the special education funding a school system receives is no less than the level of funding the school system would have received under the prior law instructional arrangement approach.
TEA noted that approximately $250 million in additional state funding will support the transition as new service group weights are developed. The existing system will remain in place for funding purposes during that year but is expected to be eliminated beginning in 2027–2028, when funding will be based solely on the new service intensity system using final tier weights and service group amounts. The 2026–2027 school year will serve as a critical calibration period, as TEA will use the data collected to establish future funding weights and allocations.
This transition represents a major operational and financial shift for districts, requiring new processes to track and report service minutes and close coordination between special education, PEIMS, and finance teams.
TEA also indicated it will continue providing training and communication to support implementation, including an upcoming webinar scheduled for April 21 at 2:00 p.m., with registration links and additional resources available on the TEA special education funding webpage and linked below:
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