A BILL to require the Department of Education to assess potential enhancements and strategies to maximize utilization of funds designated for regional special education students in order to decrease the number of referrals of students with disabilities into private day school placements; report.
HB1373 is a study-and-report bill directing the Virginia Department of Education, working with the Office of Children’s Services, legislative staff, and other stakeholders, to examine ways to better use existing regional special education funding. The goal of the review is to identify enhancements and strategies that could help school divisions make fuller use of the Students with Intensive Support Needs Application program, with the broader aim of reducing referrals of students with disabilities to private day school placements.
The bill requires the Department to look at several specific issues, including barriers that prevent school divisions from maximizing these funds, which disability categories are eligible, how costs should be recognized, and whether additional supplemental funding is appropriate for school divisions that operate center-based programs for students with disabilities. The Department must submit findings and recommendations to the relevant House and Senate committee chairs by December 15, 2026.
HB1373 does not directly change eligibility rules, funding formulas, or placement requirements in current special education law. Instead, it creates a formal review process within the Department of Education focused on regional special education funding and the use of the Students with Intensive Support Needs Application program, which may inform future budget or policy changes affecting school divisions, special education programs, and private day school placements.
The bill appears to have broad support, at least at the committee level, as reflected by its 14-0 vote to continue it to the next session in Finance and Appropriations. The available record suggests a generally constructive and noncontroversial approach centered on improving special education funding utilization and reducing reliance on private day school placements.
The main policy questions raised by the bill are how regional special education funds are being used and whether current rules or funding structures create barriers for school divisions. Specific areas of possible contention include which disability categories should qualify, how costs should be counted or reimbursed, and whether school divisions operating center-based programs should receive supplemental funding. These issues affect school divisions, the Department of Education, and advocates concerned with placement options and funding equity for students with disabilities.