Order Code RL32085
CRS Report for Congress
Received through the CRS Web
Individuals with Disabilities Education Act (IDEA):
Current Funding Trends
Updated February 11, 2005
Richard N. Apling
Specialist in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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Individuals with Disabilities Education Act (IDEA):
Current Funding Trends
Summary
The Individuals with Disabilities Education Act (IDEA) is the major federal
statute that supports special education and related services for children with
disabilities. This report traces recent funding trends for this program and tracks the
status of actions to “fully fund” the grants-to-states program under Part B of IDEA.
FY2005 total funding for IDEA is $11.7 billion. FY2005 funding for the Part B
grants-to-states program is nearly $10.6 billion. Since FY1995, funding for this
program has more than quadrupled. The FY2005 amount for the grants-to-states
program represents 18.6% of the estimated excess cost (i.e., the additional cost) of
serving children with disabilities, which is approaching one-half of the amount
necessary to “fully fund” the program for FY2005.
The President’s FY2006 budget would increase overall funding for IDEA to
$12.1 billion, with funding for the grants-to-states program increasing to nearly $11.1
billion. Because of projected increases in the estimated cost of special education and
in the number of children with disabilities served, this amount would also represent
18.6% of the estimated FY2006 excess cost.
This report will be updated to reflect congressional action on IDEA
appropriations and to incorporate updated data for excess cost calculations.

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Contents
Recent Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
FY2006 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Estimated FY2005 and FY2006 State Grants . . . . . . . . . . . . . . . . . . . . . . . . 4
Authorized Funding and “Full Funding” of IDEA . . . . . . . . . . . . . . . . . . . . 6
Part B Grants-to-States Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . 6
Background on “Full Funding” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Relationship of Appropriations and Budget Request to
“Full Funding” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
List of Tables
Table 1. IDEA Appropriations for Selected Fiscal Years (FY1995-FY2005)
and the IDEA FY2006 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 2. Final FY2004, Preliminary FY2005, and FY2006 Request IDEA
Part B Grants-to-States Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 3. Authorizations for the IDEA Part B Grants-to-States Program
(P.L. 108-446, §611(i)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 4. Estimated FY2005 and FY2006 IDEA Part B Grants-to-States
Allocations Based on Appropriated and Proposed Amounts,
FY2005 and FY2006 Authorizations, and Estimated FY2005
and FY2006 Maximum State Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5. Estimation of “Full Funding” of IDEA Part B Grants to States
(FY1995-FY2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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Individuals with Disabilities Education Act
(IDEA): Current Funding Trends
The Individuals with Disabilities Education Act (IDEA) is the major federal
statute that supports special education and related services for children with
disabilities. As a condition of accepting IDEA funding, the Act requires that states
and local educational agencies (LEAs) provide a free appropriate public education
(FAPE) to each eligible child with a disability. The IDEA is divided into four parts.
Part A contains the general provisions, including the purposes of the Act and
definitions. Part B, the most often discussed part of the Act, contains provisions
relating to the education of school aged (the grants-to-states program) and state grants
program for preschool children with disabilities (Section 619).1 Part C authorizes
state grants for programs serving infants and toddlers with disabilities,2 while Part D
contains the requirements for various national activities designed to improve the
education of children with disabilities. Part B is permanently authorized. Parts C
and D are authorized through FY2011.3 P.L. 108-446 made significant changes to
IDEA, most of which go into effect on July 1, 2005.4
Recent Funding Trends5
Table 1 shows recent trends in IDEA appropriations since FY1995 for selected
fiscal years. In this period, overall IDEA funding has increased by more than 250%,
from $3.3 billion to $11.7 billion. Most of the increases over this period have been for
the grants-to-states program, with its funding more than quadrupling since FY1995.6
Funding for Part C has increased more modestly — growing by about 40% since
FY1995. Funds for the preschool program (Section 619) have grown more slowly since
FY1995 — by about 6.75%. Since FY2002, when funding was $390 million, funding
1 Part B includes the funding formulas, provisions relating to evaluations, eligibility
determinations, individual educational programs (IEPs), and educational placements. It also
contains detailed requirements for procedural safeguards as well as withholding of funds and
judicial review.
2 Part C was originally established as Part H.
3 IDEA authorizes appropriations for Parts C and D programs and activities through
FY2010. These authorities were automatically extended for an additional fiscal year by the
General Education Provisions Act (GEPA — 20 U.S.C. §1226a).
4 For further information, see CRS Report RL32716, Individuals with Disabilities Education
Act (IDEA): Analysis of Changes Made by P.L. 108-446.
5 All dollar figures are in current dollars; no price-level adjustments have been applied.
6 As a result of the rapid increase in grants-to-states funding — the share of total IDEA
funding for which this program accounts — has also increased: from about 71% in FY1995
to about 91% in FY2005.

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CRS-2
for the preschool program has declined slightly each year due to general across-the-board
cuts in discretionary budget authority in those years. Funding for Part D had been rising
modestly since 1995. The lower appropriation in FY2005 and the lower FY2006 budget
request reflect the transfer of authority for certain research and innovation activities from
IDEA to the Institute for Education Sciences.7
FY2006 Budget Request
Table 1 also compares the FY2005 appropriations for IDEA with the
President’s FY2006 budget request. Overall funding for IDEA would increase by
4.0% under the President’s budget, from $11.7 billion to $12.1 billion. Most of this
increase is the result of a 4.8% increase in the Part B grants-to-states program, which
would grow by $508 million above the FY2005 amount. Preschool state grants and
Part C infants and toddlers grants would be level funded. Total funding for Part D
(national programs and activities) would decrease by 17.6%. Most of this decrease
is due to a request for no funding for the state personnel development grants (subpart
1 of Part D of IDEA).
In addition to grants to states and set-asides for the outlying areas,8 for the freely
associated states,9 and for children with disabilities served in Bureau of Indian Affairs
(BIA) schools, funding for the Part B grants-to-states program contains set-asides for
other purposes. Prior to the 2004 reauthorization of IDEA under P.L. 108-446, P.L. 105-
17 (the 1997 IDEA amendments) authorized the Secretary of Education to reserve up to
$20 million10 from Part B and Part C appropriations for studies and evaluations (P.L.
105-17, §674(e)). For FY2002 through FY2004, the Secretary reserved $16 million
annually for these purposes from the Part B grants-to-states appropriation and nothing
from the appropriations for Section 619 or Part C appropriations.
P.L. 108-446 made some changes in this regard. Current law no longer authorizes
Part B and Part C reserves for studies and evaluations. Instead the Secretary is
authorized to reserve up to $25 million11 of Part B appropriations for technical
assistance for the states (P.L. 108-446, §611(c)) related to state requirements for data
collection and analysis under §616(i). For FY2005, the Secretary reserved $10 million
from the Part B grants to states appropriation for this purpose and proposes the same
amount reserved for FY2006. Funding for studies and evaluation is now authorized
under Section 667 of P.L. 108-446. No funds were appropriated for these purposes in
FY2005. The President is requesting $10 million for FY2006. This amount is
reflected in the total FY2006 request for Part D in Table 1.
7 See Title II of P.L. 108-446.
8 The outlying areas are defined as “the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands” (P.L. 108-446, §602(22)).
9 The freely associated states are: the Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau (P.L. 108-446, §611(b)(1)(C)).
10 This maximum was to be adjusted each year by the rate of inflation.
11 This maximum is to be adjusted each year by the rate of inflation.

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CRS-3
Table 1. IDEA Appropriations for Selected Fiscal Years (FY1995-FY2005) and the IDEA FY2006 Budget Request
(dollars are in $000)
Percent
Percent change
change
IDEA
(FY1995-
(FY2005-
program/activity
FY1995
FY2002
FY2003
FY2004
FY2005
FY2005)
FY2006 Request
FY2006)
Part B
grants to states
$2,322,915
$7,528,533a
$8,874,398a
$10,068,106a
$10,589,746b
355.88%
$11,097,746b
4.8%
Part B
preschool grants
(Section 619)
$360,265
$390,000
$387,465
$387,699
$384,597
6.75%
$384,597
0.0%
Subtotal Part B
$2,683,180
$7,918,533
$9,261,863
$10,455,805
$10,974,343
309.01%
$11,482,343
4.6%
Part C
infants and
toddlers grants
$315,632
$417,000
$434,159
$444,363
$440,808
39.66%
$440,808
0.0%
Subtotal state
grants
$2,998,812
$8,335,533
$9,696,022
$10,900,168
$11,415,151
280.66%
$11,923,151
4.5%
Part D (total)
$254,034
$337,271
$337,895
$338,664
$258,455c
1.74%
$212,979d
-17.6%
Total IDEA
$3,252,846
$8,672,804
$10,033,917
$11,238,832
$11,673,606
258.87%
$12,136,130
4.0%
Source: U.S. Department of Education (ED) Budget Service spreadsheets.
Note: Totals may differ slightly due to rounding. All dollar figures are in current dollars; no price-level adjustments have been applied.
a.
This amount contains $16 million for studies and evaluations.
b.
This amount contains $10 million for technical assistance to states.
c.
The reduction from FY2004 reflects the transfer of authority for certain research and innovation activities to the Institute for Education Sciences, funded at $83.1 million for
FY2005 with a request for $72.6 million for FY2006.
d.
This amount contains $10 million for studies and evaluations.

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CRS-4
Estimated FY2005 and FY2006 State Grants
Table 2 shows estimated Part B grants-to-states allocations based on the
FY2004 and FY2005 appropriations and on the FY2006 request. The FY2005
estimates are compared to states’ FY2004 grants. The FY2006 estimates are
compared to the FY2005 estimates. Increases in FY2005 estimated grants range
from 4.7% to 6.7%. FY2006 estimated increases range from 4.3% to 6.3%. For both
FY2005 and FY2006, the total amount for set-asides represents inflationary increases
for Bureau of Indian Affairs (BIA) schools, outlying areas, and the freely associated
states12 and level funding for technical assistance to the states.
Table 2. Final FY2004, Preliminary FY2005, and FY2006 Request
IDEA Part B Grants-to-States Allocations
(dollars rounded to nearest $000)
Preliminary
Percentage
Percentage
FY2006 grants
change from
change from
Final FY2004
Preliminary
(based on
FY2004 to
FY2005 to
State
grants
FY2005 grants
FY2006 request)
FY2005
FY2006
Alabama
$160,386,000
$167,865,000
$175,112,000
4.7%
4.3%
Alaska
$30,463,000
$32,499,000
$34,545,000
6.7%
6.3%
Arizona
$152,382,000
$162,563,000
$172,800,000
6.7%
6.3%
Arkansas
$98,750,000
$103,546,000
$108,906,000
4.9%
5.2%
California
$1,072,637,000
$1,132,573,000
$1,192,554,000
5.6%
5.3%
Colorado
$129,058,000
$137,681,000
$146,351,000
6.7%
6.3%
Connecticut
$117,261,000
$122,729,000
$128,028,000
4.7%
4.3%
Delaware
$27,920,000
$29,785,000
$31,661,000
6.7%
6.3%
District of
Columbia
$14,038,000
$14,976,000
$15,919,000
6.7%
6.3%
Florida
$551,219,000
$581,254,000
$610,553,000
5.4%
5.0%
Georgia
$267,886,000
$285,784,000
$303,780,000
6.7%
6.3%
Hawaii
$35,212,000
$36,854,000
$38,709,000
4.7%
5.0%
Idaho
$47,389,000
$50,109,000
$52,765,000
5.7%
5.3%
Illinois
$446,658,000
$467,485,000
$487,668,000
4.7%
4.3%
Indiana
$225,537,000
$236,054,000
$246,245,000
4.7%
4.3%
Iowa
$107,669,000
$112,690,000
$117,555,000
4.7%
4.3%
Kansas
$94,250,000
$98,645,000
$102,904,000
4.7%
4.3%
Kentucky
$137,697,000
$145,703,000
$152,961,000
5.8%
5.0%
Louisiana
$163,815,000
$174,760,000
$185,250,000
6.7%
6.0%
Maine
$48,258,000
$50,509,000
$52,689,000
4.7%
4.3%
Maryland
$176,590,000
$184,824,000
$193,392,000
4.7%
4.6%
Massachusetts
$250,351,000
$262,025,000
$273,338,000
4.7%
4.3%
12 The recent practice of the U.S. Department of Education (ED) has been to increase
funding for outlying areas and the freely associated states by the rate of inflation. Recent
appropriations language (including language in the Consolidated Appropriations Act, 2005
— P.L. 108-447) limits increases in BIA funding under IDEA to the rate of inflation.

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CRS-5
Preliminary
Percentage
Percentage
FY2006 grants
change from
change from
Final FY2004
Preliminary
(based on
FY2004 to
FY2005 to
State
grants
FY2005 grants
FY2006 request)
FY2005
FY2006
Michigan
$353,313,000
$369,788,000
$385,753,000
4.7%
4.3%
Minnesota
$167,415,000
$175,222,000
$182,787,000
4.7%
4.3%
Mississippi
$104,964,000
$109,859,000
$114,602,000
4.7%
4.3%
Missouri
$200,334,000
$209,676,000
$218,728,000
4.7%
4.3%
Montana
$32,189,000
$33,928,000
$35,621,000
5.4%
5.0%
Nebraska
$65,854,000
$68,924,000
$71,900,000
4.7%
4.3%
Nevada
$57,306,000
$61,135,000
$64,985,000
6.7%
6.3%
New Hampshire
$41,854,000
$43,805,000
$45,697,000
4.7%
4.3%
New Jersey
$318,780,000
$333,645,000
$348,049,000
4.7%
4.3%
New Mexico
$80,379,000
$84,127,000
$87,760,000
4.7%
4.3%
New York
$669,506,000
$700,725,000
$730,978,000
4.7%
4.3%
North Carolina
$271,197,000
$288,837,000
$303,763,000
6.5%
5.2%
North Dakota
$22,670,000
$24,185,000
$25,708,000
6.7%
6.3%
Ohio
$386,053,000
$404,055,000
$421,499,000
4.7%
4.3%
Oklahoma
$130,456,000
$136,539,000
$142,434,000
4.7%
4.3%
Oregon
$113,748,000
$119,052,000
$124,192,000
4.7%
4.3%
Pennsylvania
$376,739,000
$394,307,000
$411,330,000
4.7%
4.3%
Puerto Rico
$93,148,000
$99,371,000
$105,629,000
6.7%
6.3%
Rhode Island
$38,567,000
$40,365,000
$42,108,000
4.7%
4.3%
South Carolina
$154,478,000
$161,682,000
$168,662,000
4.7%
4.3%
South Dakota
$27,006,000
$28,811,000
$30,625,000
6.7%
6.3%
Tennessee
$205,686,000
$215,277,000
$224,571,000
4.7%
4.3%
Texas
$834,470,000
$889,556,000
$936,850,000
6.6%
5.3%
Utah
$93,688,000
$98,468,000
$103,653,000
5.1%
5.3%
Vermont
$21,859,000
$23,319,000
$24,787,000
6.7%
6.3%
Virginia
$246,109,000
$259,999,000
$273,145,000
5.6%
5.1%
Washington
$195,226,000
$204,329,000
$213,151,000
4.7%
4.3%
West Virginia
$66,978,000
$70,101,000
$73,128,000
4.7%
4.3%
Wisconsin
$183,608,000
$192,169,000
$200,466,000
4.7%
4.3%
Wyoming
$22,932,000
$24,464,000
$26,004,000
6.7%
6.3%
Subtotals to states
$9,931,941,000 $10,456,631,000
$10,962,251,000
5.3%
4.8%
Total set-asides
$136,166,000
$133,114,000
$135,495,000
-2.2%
1.8%
Totals
$10,068,106,000 $10,589,746,000
$11,097,746,000
5.2%
4.8%
Source: CRS calculations based on data obtained from the U.S. Department of Education (ED) Budget
Service.
Note: Totals may differ slightly due to rounding. FY2005 and FY2006 grants are estimates only and do not
necessarily represent amounts states and other entities will eventually receive. These amounts are provided
for the purpose of policy discussion only.

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CRS-6
Authorized Funding and “Full Funding” of IDEA
Actual and proposed Part B grants-to-states funding and state grant amounts are
often compared with amounts to provide maximum state grants under the program
— the so called “full funding” of IDEA. In addition, as a result of changes made by
P.L. 108-446, which provides for specific authorization levels for the Part B grants-
to-states program, it is appropriate to compare actual and proposed funding and grant
amounts to authorized funding levels and estimated state grants at those authorized
levels.
Part B Grants-to-States Authorizations. Prior to the enactment of P.L.
108-446, IDEA authorized “such sums a may be necessary” for the Part B grants-to-
states program. In response to debate about how and when to “fully fund” IDEA,
both the House and Senate IDEA reauthorization bills (H.R. 1350 and S. 1248)
included several years of specific authorization levels, culminating in amounts
estimated to provide each state with its maximum grant.13 This approach was
included in P.L. 108-446 (§611(i)), with estimated “full funding” reached in FY2011.
Table 3 lists these authorized amounts.
Table 3. Authorizations for the IDEA Part B Grants-to-States
Program (P.L. 108-446, §611(i))
Fiscal year
Authorization
2005
$12,358,376,571
2006
$14,648,647,143
2007
$16,938,917,714
2008
$19,229,188,286
2009
$21,519,458,857
2010
$23,809,729,429
2011
$26,100,000,000
2012 and subsequent years
such sums as may be necessary
Table 4 below compares estimated FY2005 Part B grants-to-states allocations
(column 2) with estimated allocations based on the FY2005 authorization level for
the program (column 3) and estimated FY2006 allocations based on the President’s
budget request (column 5) with those based on the FY2006 authorization (column
6). As discussed below, Table 4 also presents estimates of maximum state grants
under the grants-to-states program for comparison with grants based on appropriated,
requested, and authorized amounts.
13 The House committee report accompanying H.R. 1350 noted with respect to the bill’s
authorization levels that “the Committee has established a clear and genuine pattern to reach
the 40 percent goal within the next seven years” (H.Rept. 108-77, p. 93).

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CRS-7
Table 4. Estimated FY2005 and FY2006 IDEA Part B Grants-to-
States Allocations Based on Appropriated and Proposed
Amounts, FY2005 and FY2006 Authorizations, and Estimated
FY2005 and FY2006 Maximum State Grants
Preliminary
Estimated
Estimated
FY2006 Grants
Estimated
Estimated
FY2005
FY2005
(based on
FY2006
FY2006
Preliminary
Authorized
Maximum
President’s
Authorized
Maximum
State
FY2005 Grants
Grants
Grants
request)
Grants
Grants
(column 1)
(column 2)
(column 3)
(column 4)
(column 5)
(column 6)
(column 7)
Alabama
$167,865,000
$194,464,000
$309,467,000
$175,112,000
$227,586,000
$319,331,000
Alaska
$32,499,000
$37,850,000
$59,724,000
$34,545,000
$45,432,000
$61,628,000
Arizona
$162,563,000
$189,332,000
$364,589,000
$172,800,000
$227,259,000
$376,210,000
Arkansas
$103,546,000
$122,695,000
$222,120,000
$108,906,000
$146,804,000
$229,200,000
California
$1,132,573,000
$1,332,727,000
$2,247,317,000
$1,192,554,000
$1,599,701,000 $2,318,948,000
Colorado
$137,681,000
$160,352,000
$274,186,000
$146,351,000
$192,474,000
$282,925,000
Connecticut
$122,729,000
$142,177,000
$246,813,000
$128,028,000
$166,392,000
$254,680,000
Delaware
$29,785,000
$34,690,000
$61,248,000
$31,661,000
$41,639,000
$63,200,000
District of
Columbia
$14,976,000
$17,442,000
$43,456,000
$15,919,000
$20,936,000
$44,841,000
Florida
$581,254,000
$684,878,000
$1,322,784,000
$610,553,000
$817,702,000 $1,364,946,000
Georgia
$285,784,000
$332,843,000
$635,017,000
$303,780,000
$399,518,000
$655,257,000
Hawaii
$36,854,000
$43,750,000
$77,373,000
$38,709,000
$52,385,000
$79,840,000
Idaho
$50,109,000
$58,880,000
$96,748,000
$52,765,000
$70,675,000
$99,832,000
Illinois
$467,485,000
$546,273,000
$1,057,910,000
$487,668,000
$644,244,000 $1,091,630,000
Indiana
$236,054,000
$276,109,000
$571,657,000
$246,245,000
$324,769,000
$589,878,000
Iowa
$112,690,000
$130,546,000
$245,153,000
$117,555,000
$152,781,000
$252,967,000
Kansas
$98,645,000
$114,276,000
$216,626,000
$102,904,000
$134,112,000
$223,531,000
Kentucky
$145,703,000
$171,085,000
$345,141,000
$152,961,000
$204,282,000
$356,142,000
Louisiana
$174,760,000
$203,536,000
$338,988,000
$185,250,000
$244,309,000
$349,793,000
Maine
$50,509,000
$58,512,000
$125,654,000
$52,689,000
$68,478,000
$129,660,000
Maryland
$184,824,000
$218,708,000
$378,669,000
$193,392,000
$258,099,000
$390,739,000
Massachusetts
$262,025,000
$303,546,000
$528,910,000
$273,338,000
$355,246,000
$545,769,000
Michigan
$369,788,000
$436,245,000
$792,464,000
$385,753,000
$517,642,000
$817,723,000
Minnesota
$175,222,000
$202,987,000
$379,813,000
$182,787,000
$238,034,000
$391,920,000
Mississippi
$109,859,000
$129,774,000
$222,409,000
$114,602,000
$154,024,000
$229,499,000
Missouri
$209,676,000
$244,267,000
$477,533,000
$218,728,000
$286,948,000
$492,754,000
Montana
$33,928,000
$39,823,000
$64,693,000
$35,621,000
$47,457,000
$66,755,000
Nebraska
$68,924,000
$79,846,000
$148,192,000
$71,900,000
$93,446,000
$152,916,000
Nevada
$61,135,000
$71,202,000
$150,320,000
$64,985,000
$85,465,000
$155,112,000
New Hampshire
$43,805,000
$50,747,000
$104,128,000
$45,697,000
$59,390,000
$107,447,000
New Jersey
$333,645,000
$386,514,000
$802,374,000
$348,049,000
$452,345,000
$827,949,000
New Mexico
$84,127,000
$98,214,000
$172,313,000
$87,760,000
$115,526,000
$177,805,000
New York
$700,725,000
$811,761,000
$1,472,429,000
$730,978,000
$950,021,000 $1,519,361,000
North Carolina
$288,837,000
$336,957,000
$645,020,000
$303,763,000
$404,456,000
$665,579,000
North Dakota
$24,185,000
$28,167,000
$46,705,000
$25,708,000
$33,810,000
$48,193,000
Ohio
$404,055,000
$472,925,000
$844,297,000
$421,499,000
$560,289,000
$871,208,000
Oklahoma
$136,539,000
$159,899,000
$309,430,000
$142,434,000
$188,961,000
$319,293,000

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CRS-8
Preliminary
Estimated
Estimated
FY2006 Grants
Estimated
Estimated
FY2005
FY2005
(based on
FY2006
FY2006
Preliminary
Authorized
Maximum
President’s
Authorized
Maximum
State
FY2005 Grants
Grants
Grants
request)
Grants
Grants
(column 1)
(column 2)
(column 3)
(column 4)
(column 5)
(column 6)
(column 7)
Oregon
$119,052,000
$139,807,000
$253,035,000
$124,192,000
$165,278,000
$261,100,000
Pennsylvania
$394,307,000
$462,526,000
$908,750,000
$411,330,000
$547,723,000
$937,716,000
Puerto Rico
$99,371,000
$115,734,000
$259,171,000
$105,629,000
$138,918,000
$267,431,000
Rhode Island
$40,365,000
$46,761,000
$107,167,000
$42,108,000
$54,726,000
$110,583,000
South Carolina
$161,682,000
$189,328,000
$369,398,000
$168,662,000
$222,975,000
$381,172,000
South Dakota
$28,811,000
$33,555,000
$59,063,000
$30,625,000
$40,277,000
$60,945,000
Tennessee
$215,277,000
$252,273,000
$407,808,000
$224,571,000
$297,817,000
$420,807,000
Texas
$889,556,000
$1,036,810,000
$1,685,318,000
$936,850,000
$1,244,505,000 $1,739,035,000
Utah
$98,468,000
$116,406,000
$192,037,000
$103,653,000
$139,724,000
$198,158,000
Vermont
$23,319,000
$27,159,000
$45,734,000
$24,787,000
$32,599,000
$47,191,000
Virginia
$259,999,000
$305,785,000
$571,604,000
$273,145,000
$366,089,000
$589,823,000
Washington
$204,329,000
$241,484,000
$411,287,000
$213,151,000
$286,744,000
$424,396,000
West Virginia
$70,101,000
$81,209,000
$168,847,000
$73,128,000
$95,041,000
$174,229,000
Wisconsin
$192,169,000
$223,935,000
$426,152,000
$200,466,000
$263,897,000
$439,736,000
Wyoming
$24,464,000
$28,492,000
$44,699,000
$26,004,000
$34,200,000
$46,124,000
Subtotals to states $10,456,631,000 $12,225,262,000 $22,311,740,000 $10,962,251,000 $14,513,152,000 $23,022,907,000
Total Set-Asides
$133,114,000
$133,114,000
$133,114,000
$135,495,000
$135,495,000
$135,495,000
Totals
$10,589,746,000 $12,358,377,000 $22,444,854,000 $11,097,746,000 $14,648,647,000 $23,158,402,000
Source: CRS calculations based on data obtained from the U.S. Department of Education (ED)
Budget Service.
Note: Totals may differ slightly due to rounding. State grants are estimates only and do not
necessarily represent amounts states and other entities will eventually receive. These amounts are
provided for the purpose of policy discussion only.
Background on “Full Funding”. When Congress enacted the predecessor
legislation to IDEA14 in 1975, the available estimate of the cost of educating children
with disabilities was, on average, twice the cost of educating other children. A
determination was made that the federal government would pay some proportion of
this additional or “excess” cost. The metric for determining this excess cost was the
national average per-pupil expenditure (APPE). The final determination was that the
federal government would pay up to 40% of this excess cost. That is, a state’s
14 Federal special education legislation existed prior to 1975 — most notably the Education
of the Handicapped Act (EHA). P.L. 94-142 (the Education for All Handicapped Children
Act of 1975) substantially amended the EHA, creating the essential structure and principles
of federal assistance to special education that are still reflected in current law. In 1990, the
name of the Act was changed to the Individuals with Disabilities Education Act by P.L. 101-
476. Congress made extensive amendments to IDEA in 1997 (P.L. 105-17); however the
basic characteristics of the Act resemble those first enacted in 1975.

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CRS-9
maximum grant under the grant-to-states program is 40% of APPE times the number
of children with disabilities served. (See Section 611(a)(2) of IDEA.)15
Relationship of Appropriations and Budget Request to “Full
Funding”. Although appropriations for IDEA Part B grants to states have increased
significantly over the last decade, funding still falls short of the amount that would
be necessary to provide maximum grants to all states. Table 5 shows estimated
percentages of excess cost since FY1995. The 5th column of the table shows the
estimated excess cost, that is, the number of children with disabilities served times
the national APPE. The 4th column shows the estimated amount needed to “fully
fund” IDEA, that is 40% of the figures in the final column. The calculation of the
percentage of excess cost included in the appropriation (column 3) is obtained by
dividing the appropriation (column 2)16 by the last column (column 5). The FY2005
appropriated amount (accounting for 18.6% of the estimated excess cost), is
approaching one-half of the funds necessary to reach 40% of estimated excess cost
and thus represents about one-half of the amount that would be needed to “fully
fund” IDEA for FY2005. The President’s budget request would also account for
about 18.6% of estimated excess cost.
Table 5. Estimation of “Full Funding” of
IDEA Part B Grants to States (FY1995-FY2006)
Actual and
Estimated
Appropriations
proposed
federal full
for IDEA Part B appropriations as funding (40% of
Estimated
grants to states
% of estimated
excess cost)
excess cost
FY
(in $000)
excess cost
(in $000)
(in $000)
(column 1)
(column 2)
(column 3)
(column 4)
(column 5)
1995
$2,322,915
7.80%
$11,872,137
$29,680,343
1996
2,323,837
7.30%
12,699,024
31,747,560
1997
3,107,522
9.20%
13,460,630
33,651,576
1998
3,801,000
10.50%
14,457,195
36,142,988
1999
4,301,000
11.10%
15,445,347
38,613,368
2000
4,976,685
12.00%
16,641,158
41,602,894
2001
6,323,685
14.10%
17,882,114
44,705,286
2002
7,512,533
15.45%
19,446,407
48,616,017
2003
8,858,398
17.08%
20,729,452
51,823,629
2004
10,052,106
18.40%
21,911,602
54,779,004
2005
10,579,746
18.63%
22,717,174
56,792,934
2006 request
11,087,746
18.64%
23,791,283
59,478,207
15 Under P.L. 108-446, the calculation of maximum state grants will change in FY2007. See
CRS Report RL32716, pp. 7-8 (“Part B — Assistance for Children with Disabilities Ages
3 to 21: Allotment and Authorization (§611)”), for a discussion of this change.
16 Note that funds for evaluations and studies are excluded from these calculations for
FY1998 through FY2005 and funds for technical assistance are excluded from calculations
for FY2005 and FY2006.

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CRS-10
Source: Table prepared by Congressional Research Service (CRS) from U.S. Department of
Education (ED) data.
Note: FY1999-FY2004 funds exclude amounts for studies and evaluations; FY2005 and FY2005
funds exclude funds for technical assistance. Estimates of full funding amounts and percentages of
APPE will change for any fiscal year for which ED revises data to calculate these estimates.
It is important to note that the estimates of excess cost (and thus of the “full
funding” amount) tend to increase from year to year. That is because the Budget
Service of the U.S. Department of Education (ED), which is the principal source of
estimates, increases its estimates of the number of children with disabilities each year
and increases the estimated APPE by an inflation adjustment.
Table 4 above compares estimated compares estimated FY2005 Part B grants-
to-states allocations (column 2) with allocations based on estimated FY2005
maximum state grants (column 4) and estimated FY2006 allocations based on the
President’s budget request (column 5) with estimated FY2006 maximum grants
(column 7). It is important to note that totals for maximum grants for FY2005 and
FY2006 in Table 4 differ from those in column 4 of Table 5 because the Budget
Service projects total numbers of children with disabilities served in its estimates of
total funds necessary for “full funding” but does not do this for numbers of children
with disabilities served in each state. For the state-by-state maximum grant
estimates, the Budget Service uses the most recent child count reported by the states,
which currently are for December 2003.

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