Order Code RL32085
CRS Report for Congress
Received through the CRS Web
Individuals with Disabilities Education Act (IDEA):
Current Funding Trends
Updated February 16, 2006
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.
FY2006 total funding for IDEA is $11.65 billion. FY2006 funding for the Part B
grants-to-states program is nearly $10.58 billion. Since FY1995, funding for this
program has more than quadrupled. The FY2006 amount for the grants-to-states
program represents 17.7% of the estimated excess cost (i.e., the additional cost) of
serving children with disabilities, which is down from the 18.5% of excess cost that
the FY2005 appropriation represented.
The President’s FY2007 budget would increase overall funding for IDEA to
$11.7 billion, with funding for the grants-to-states program increasing to nearly $10.6
billion, an increase of $100 million above the FY2006 appropriation. Because of
projected increases in the estimated cost of special education and in the number of
children with disabilities served, this amount would represent another decrease in the
estimated FY2007 excess cost to 17.0%.
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
FY2007 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Estimated FY2006 and FY2007 State Grants . . . . . . . . . . . . . . . . . . . . . . . . 3
Authorized Funding and Maximum Funding of IDEA . . . . . . . . . . . . . . . . . 6
Part B Grants-to-States Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . 6
Background on Maximum Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Relationship of Appropriations and Budget Request to Maximum
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
List of Tables
Table 1. IDEA Appropriations for Selected Fiscal Years (FY1995-FY2006)
and the IDEA FY2007 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 2. Final FY2005, Preliminary FY2006, and FY2007 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 FY2006 and FY2007 IDEA Part B Grants-to-States
Allocations Based on Appropriated and Proposed Amounts, FY2006
and FY2007 Authorizations, and Estimated FY2006 Maximum State
Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5. Estimation of “Full Funding” of IDEA Part B Grants to States
(FY1995-FY2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, 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 FY2011.2 P.L. 108-446 made significant changes to
IDEA, most of which went into effect on July 1, 2005.3
Recent Funding Trends4
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 FY1995.5
Funding for Part C has increased more modestly — growing by about 38% since
FY1995. Funds for the preschool program (Section 619) have grown more slowly since
FY1995 — by about 5.7%. Since FY2002, when funding was $390 million, funding for
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 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).
3 For further information, see CRS Report RL32716, Individuals with Disabilities Education
Act (IDEA): Analysis of Changes Made by P.L. 108-446, by Richard N. Apling and Nancy
Lee Jones. (Hereafter cited as CRS Report RL32716.)
4 All dollar figures are in current dollars; no price-level adjustments have been applied.
5 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
the preschool program has declined slightly each year due to general across-the-board
cuts in discretionary budget authority in those years. The slightly lower funding for Part
D for FY2006 compared with 1995 reflects the transfer of authority for certain research
and evaluation activities from IDEA to the Institute for Education Sciences (IES).6
FY2007 Budget Request
Table 1 also compares the FY2006 appropriations for IDEA with the
President’s FY2007 budget request. Overall funding for IDEA would increase by
0.38% under the President’s budget, from $11.65 billion to $11.7 billion. Most of
this increase is the result of a 0.94% increase in the Part B grants-to-states program,
which would grow by $100 million above the FY2006 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 22%. 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,7 for the freely
associated states,8 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, the
statute authorized the Secretary of Education to reserve up to $20 million9 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 million10 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 $15 million for
FY2006. The President proposes reserving $20 million for FY2007.
6 See Title II of P.L. 108-446. The FY2006 amount for special education research in the IES
budget is $71.8 million, the same as the President’s request for FY2007. The FY2006
amount for special education studies and evaluation in the IES budget is $9.9 million, the
same as the FY2007 request.
7 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)).
8 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)).
9 This maximum was to be adjusted each year by the rate of inflation.
10 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-FY2006) and the IDEA FY2007 Budget Request
(in thousands of dollars)
Percent
Percent
IDEA
change
change
program/
(FY1995-
FY2007
(FY2006-
activity
FY1995
FY2005
FY2006
FY2006)
Request
FY2007)
Part B
grants to
$2,322,915 $10,589,746 $10,582,961
355.59%
$10,682,961
0.94%
states
Part B
preschool
grants
$360,265
$384,597
$380,751
5.69%
$380,751
0.00%
(Section
619)
Subtotal
$2,683,180 $10,974,343 $10,963,712
308.61%
$11,063,712
0.91%
Part B
Part C
infants
and
$315,632
$440,808
$436,400
38.26%
$436,400
0.00%
toddlers
grants
Subtotal
state
$2,998,812 $11,415,151 $11,400,112
280.15%
$11,500,112
0.88%
grants
Part D
$254,034
$258,455
$252,901
-0.45%
$197,390 -21.95%
(total)
Total
$3,252,846 $11,673,606 $11,653,013
258.24%
$11,697,502
0.38%
IDEA
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.
Estimated FY2006 and FY2007 State Grants
Table 2 shows estimated Part B grants-to-states allocations based on the
FY2005 and FY2006 appropriations and on the FY2007 request. The FY2006
estimates are compared to states’ FY2005 grants. The FY2007 estimates are
compared to the FY2006 estimates. Decreases in FY2006 estimated grants range
from -0.13% to -0.15%. FY2007 estimated increases range from 0.85% to 2.44%.
The interaction of IDEA formula provisions accounts for the smallest states receiving
percentage increases that are nearly three times the percentage increases of most other
states. The formula requires (at the proposed level of the President’s increase) that
no state receive less than a% of the overall increase in funding since FY1999 or
90% of the percentage increase of total IDEA Part B grants-to-states appropriations
over the previous year, whichever amount is greater. In addition, no state may

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CRS-4
receive a grant that is more than the overall annual growth rate in appropriations plus
1.5 percentage points. The minimum grant for the smallest states is the a% of
appropriations growth since FY1999; however, this would be more than the overall
annual growth plus 1.5 percentage points. So the smallest states receive the latter
percentage increase (0.94% + 1.5% = 2.44%). Most other states receive the other
minimum growth rate of 90% of the annual growth in total appropriations (0.94 times
90% = 0.85%). For both FY2006 and FY2007, the total amount for set-asides
represents inflationary increases for Bureau of Indian Affairs (BIA) schools, outlying
areas, and the freely associated states11 and level funding for technical assistance to
the states.
Table 2. Final FY2005, Preliminary FY2006, and FY2007 Request
IDEA Part B Grants-to-States Allocations
(dollars rounded to nearest $000)
Percentage
Estimated
Estimated
change
percentage
FY2007 grants
from
change from
Final FY2005
Preliminary
(based on
FY2005 to
FY2006 to
State
grants
FY2006 grants FY2007 request)
FY2006
FY2007
Alabama
$167,865,000
$167,635,000
$169,060,000
-0.14%
0.85%
Alaska
32,499,000
32,452,000
33,245,000
-0.15%
2.44%
Arizona
162,563,000
162,328,000
164,291,000
-0.15%
1.21%
Arkansas
103,546,000
103,400,000
104,280,000
-0.14%
0.85%
California
1,132,573,000
1,130,940,000
1,140,558,000
-0.14%
0.85%
Colorado
137,681,000
137,481,000
138,651,000
-0.15%
0.85%
Connecticut
122,729,000
122,567,000
123,609,000
-0.13%
0.85%
Delaware
29,785,000
29,742,000
30,469,000
-0.15%
2.44%
District of
14,976,000
14,954,000
15,320,000
-0.15%
2.44%
Columbia
Florida
581,254,000
580,457,000
585,393,000
-0.14%
0.85%
Georgia
285,784,000
285,369,000
287,796,000
-0.15%
0.85%
Hawaii
36,854,000
36,801,000
37,114,000
-0.14%
0.85%
Idaho
50,109,000
50,036,000
50,462,000
-0.14%
0.85%
Illinois
467,485,000
466,850,000
470,820,000
-0.14%
0.85%
Indiana
236,054,000
235,740,000
237,745,000
-0.13%
0.85%
Iowa
112,690,000
112,542,000
113,499,000
-0.13%
0.85%
Kansas
98,645,000
98,509,000
99,347,000
-0.14%
0.85%
Kentucky
145,703,000
145,505,000
146,743,000
-0.14%
0.85%
Louisiana
174,760,000
174,506,000
175,990,000
-0.15%
0.85%
Maine
50,509,000
50,442,000
50,871,000
-0.13%
0.85%
Maryland
184,824,000
184,574,000
186,143,000
-0.14%
0.85%
Massachusetts
262,025,000
261,681,000
263,906,000
-0.13%
0.85%
11 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 act making appropriations for the
Departments of Labor, Health and Human Services, and Education and Related Agencies
for FY2006 — P.L. 109-149) limits increases in BIA funding under IDEA to the rate of
inflation.

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CRS-5
Percentage
Estimated
Estimated
change
percentage
FY2007 grants
from
change from
Final FY2005
Preliminary
(based on
FY2005 to
FY2006 to
State
grants
FY2006 grants FY2007 request)
FY2006
FY2007
Michigan
$369,788,000
$369,262,000
$372,402,000
-0.14%
0.85%
Minnesota
175,222,000
174,985,000
176,473,000
-0.14%
0.85%
Mississippi
109,859,000
109,703,000
110,635,000
-0.14%
0.85%
Missouri
209,676,000
209,400,000
211,180,000
-0.13%
0.85%
Montana
33,928,000
33,879,000
34,238,000
-0.14%
1.06%
Nebraska
68,924,000
68,834,000
69,419,000
-0.13%
0.85%
Nevada
61,135,000
61,046,000
61,566,000
-0.15%
0.85%
New
43,805,000
43,748,000
44,120,000
-0.13%
0.85%
Hampshire
New Jersey
333,645,000
333,206,000
336,040,000
-0.13%
0.85%
New Mexico
84,127,000
84,016,000
84,730,000
-0.13%
0.85%
New York
700,725,000
699,789,000
705,740,000
-0.13%
0.85%
North
288,837,000
288,431,000
290,884,000
-0.14%
0.85%
Carolina
North Dakota
24,185,000
24,150,000
24,740,000
-0.15%
2.44%
Ohio
404,055,000
403,485,000
406,916,000
-0.14%
0.85%
Oklahoma
136,539,000
136,350,000
137,510,000
-0.14%
0.85%
Oregon
119,052,000
118,887,000
119,898,000
-0.14%
0.85%
Pennsylvania
394,307,000
393,753,000
397,102,000
-0.14%
0.85%
Puerto Rico
99,371,000
99,227,000
101,653,000
-0.15%
2.44%
Rhode Island
40,365,000
40,312,000
40,655,000
-0.13%
0.85%
South
161,682,000
161,465,000
162,838,000
-0.13%
0.85%
Carolina
South Dakota
28,811,000
28,769,000
29,472,000
-0.15%
2.44%
Tennessee
215,277,000
214,982,000
216,811,000
-0.14%
0.85%
Texas
889,556,000
888,269,000
895,823,000
-0.14%
0.85%
Utah
98,468,000
98,327,000
99,163,000
-0.14%
0.85%
Vermont
23,319,000
23,285,000
23,854,000
-0.15%
2.44%
Virginia
259,999,000
259,641,000
261,849,000
-0.14%
0.85%
Washington
204,329,000
204,037,000
205,772,000
-0.14%
0.85%
West Virginia
70,101,000
70,009,000
70,604,000
-0.13%
0.85%
Wisconsin
192,169,000
191,909,000
193,541,000
-0.14%
0.85%
Wyoming
24,464,000
24,428,000
25,026,000
-0.15%
2.44%
Subtotals to
10,456,631,000
10,442,096,000
10,535,970,000
-0.14%
0.90%
states
Total
133,114,000
140,864,000
146,991,000
5.82%
4.35%
set-asides
Totals
$10,589,746,000 $10,582,961,000 $10,682,961,000
-0.06%
0.94%
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. FY2006 and FY2007 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 Maximum 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 as may be necessary” for the Part B grants-to-
states program. In response to debate about how and when to reach maximum
funding for IDEA, P.L. 108-446 [§611(i)] amended the act to include several years
of specific authorization levels, culminating in an amount estimated to provide each
state with its maximum grant 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 FY2006 Part B grants-to-states allocations
(column 2) with estimated allocations based on the FY2006 authorization level for
the program (column 3) and estimated FY2007 allocations based on the President’s
budget request (column 5) with those based on the FY2007 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.

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CRS-7
Table 4. Estimated FY2006 and FY2007 IDEA Part B Grants-to-
States Allocations Based on Appropriated and Proposed
Amounts, FY2006 and FY2007 Authorizations, and Estimated
FY2006 Maximum State Grants
Estimated
Estimated
Estimated
FY2007 Grants
Estimated
FY2006
FY2006
(based on
FY2007
Preliminary
Authorized
Maximum
President’s
Authorized
State
FY2006 Grants
Grants
Grants
request)
Grants
(column 1)
(column 2)
(column 3)
(column 4)
(column 5)
(column 6)
Alabama
$167,635,000
$229,687,000
$321,198,000
$169,060,000
$265,799,000
Alaska
32,452,000
45,443,000
62,229,000
33,245,000
52,428,000
Arizona
162,328,000
227,310,000
405,687,000
164,291,000
262,254,000
Arkansas
103,400,000
144,787,000
233,651,000
104,280,000
167,052,000
California
1,130,940,000
1,583,660,000
2,317,761,000
1,140,558,000
1,827,129,000
Colorado
137,481,000
192,517,000
285,677,000
138,651,000
222,113,000
Connecticut
122,567,000
167,929,000
250,627,000
123,609,000
194,340,000
Delaware
29,742,000
41,648,000
64,164,000
30,469,000
48,050,000
District of
14,954,000
20,941,000
40,517,000
15,320,000
24,160,000
Columbia
Florida
580,457,000
812,760,000
1,372,643,000
585,393,000
937,777,000
Georgia
285,369,000
399,608,000
672,347,000
287,796,000
461,038,000
Hawaii
36,801,000
51,533,000
78,024,000
37,114,000
59,456,000
Idaho
50,036,000
70,066,000
99,105,000
50,462,000
80,838,000
Illinois
466,850,000
644,219,000
1,108,345,000
470,820,000
752,653,000
Indiana
235,740,000
324,757,000
601,233,000
237,745,000
378,613,000
Iowa
112,542,000
154,192,000
252,693,000
113,499,000
178,444,000
Kansas
98,509,000
134,975,000
204,770,000
99,347,000
156,696,000
Kentucky
145,505,000
203,734,000
366,893,000
146,743,000
235,076,000
Louisiana
174,506,000
244,364,000
351,732,000
175,990,000
281,929,000
Maine
50,442,000
69,110,000
128,936,000
50,871,000
79,980,000
Maryland
184,574,000
258,089,000
385,726,000
186,143,000
298,194,000
Massachusetts
261,681,000
358,526,000
555,895,000
263,906,000
414,917,000
Michigan
369,262,000
517,069,000
830,207,000
372,402,000
596,573,000
Minnesota
174,985,000
239,754,000
396,329,000
176,473,000
277,707,000
Mississippi
109,703,000
153,614,000
236,379,000
110,635,000
177,234,000
Missouri
209,400,000
286,937,000
490,280,000
211,180,000
334,176,000
Montana
33,879,000
47,441,000
66,957,000
34,238,000
54,734,000
Nebraska
68,834,000
94,308,000
156,865,000
69,419,000
109,142,000
Nevada
61,046,000
85,484,000
161,337,000
61,566,000
98,626,000
New Hampshire
43,748,000
59,938,000
108,696,000
44,120,000
69,365,000
New Jersey
333,206,000
456,521,000
843,755,000
336,040,000
528,327,000
New Mexico
84,016,000
115,521,000
176,604,000
84,730,000
134,683,000
New York
699,789,000
958,792,000
1,510,247,000
705,740,000
1,109,575,000
North Carolina
288,431,000
403,877,000
663,593,000
290,884,000
465,985,000
North Dakota
24,150,000
33,818,000
50,379,000
24,740,000
39,016,000
Ohio
403,485,000
560,267,000
894,652,000
406,916,000
651,864,000

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CRS-8
Estimated
Estimated
Estimated
FY2007 Grants
Estimated
FY2006
FY2006
(based on
FY2007
Preliminary
Authorized
Maximum
President’s
Authorized
State
FY2006 Grants
Grants
Grants
request)
Grants
(column 1)
(column 2)
(column 3)
(column 4)
(column 5)
(column 6)
Oklahoma
136,350,000
188,954,000
326,077,000
137,510,000
220,285,000
Oregon
118,887,000
165,272,000
264,645,000
119,898,000
192,072,000
Pennsylvania
393,753,000
547,701,000
968,933,000
397,102,000
636,141,000
Puerto Rico
99,227,000
138,950,000
300,214,000
101,653,000
160,310,000
Rhode Island
40,312,000
55,231,000
108,205,000
40,655,000
63,918,000
South Carolina
161,465,000
222,967,000
382,654,000
162,838,000
260,207,000
South Dakota
28,769,000
40,286,000
61,498,000
29,472,000
46,479,000
Tennessee
214,982,000
297,806,000
420,862,000
216,811,000
347,322,000
Texas
888,269,000
1,243,854,000
1,764,652,000
895,823,000
1,435,073,000
Utah
98,327,000
137,686,000
205,347,000
99,163,000
158,855,000
Vermont
23,285,000
32,607,000
47,754,000
23,854,000
37,619,000
Virginia
259,641,000
363,553,000
610,444,000
261,849,000
419,472,000
Washington
204,037,000
285,710,000
425,748,000
205,772,000
329,639,000
West Virginia
70,009,000
95,918,000
172,874,000
70,604,000
111,005,000
Wisconsin
191,909,000
263,887,000
443,291,000
193,541,000
308,116,000
Wyoming
24,428,000
34,208,000
46,550,000
25,026,000
39,466,000
Subtotals to
10,442,096,000
14,507,783,000
23,295,880,000
10,535,970,000
16,791,926,000
states
Total Set-Asides
140,864,000
140,864,000
140,864,000
146,991,000
146,991,000
Totals
$10,582,961,000 $14,648,647,000 $23,436,744,000 $10,682,961,000 $16,938,918,000
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 Maximum Funding. When Congress enacted the
predecessor legislation to IDEA12 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,
12 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) and again in
2004 (P.L. 108-446); however the basic characteristics of the act resemble those first
enacted in 1975.

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CRS-9
a state’s 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.)13
Total funds necessary to provide each state with its maximum grant are often called
the “full funding” amount for IDEA Part B grants to states.
Relationship of Appropriations and Budget Request to Maximum
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)14 by the last column (column 5). The FY2006
appropriated amount (accounting for 17.73% of the estimated excess cost), represents
the first time the percentage of APPE has declined from the prior year since FY1996.
The President’s budget request would also account for about 17% of estimated excess
cost, which would represent another decrease.
Table 5. Estimation of “Full Funding” of
IDEA Part B Grants to States (FY1995-FY2007)
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
17.09%
20,729,452
51,823,629
2004
10,052,106
18.35%
21,911,602
54,779,004
2005
10,579,746
18.51%
22,858,080
57,145,200
2006
10,567,961
17.73%
23,847,402
59,618,504
13 Under P.L. 108-446, the calculation of maximum state grants will change in FY2007. See
CRS Report RL32716 (“Part B — Assistance for Children with Disabilities Ages 3 to 21:
Allotment and Authorization (§611)”), for a discussion of this change.
14 Note that funds for evaluations and studies are excluded from these calculations for
FY1999 through FY2004 and funds for technical assistance are excluded from calculations
for FY2006 and FY2007.

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CRS-10
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)
2007 request
10,662,961
16.97%
25,134,246
62,835,615
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 through FY2007
funds exclude amounts 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 FY2006 Part B grants-to-states allocations
(column 2) with allocations based on estimated FY2006 maximum state grants
(column 4). Estimates of FY2007 maximum state grants are not available at this time
because a new method of calculating maximum grants goes into effect in FY2007,15
and complete data for making estimates are not currently available.
It is important to note that totals for maximum grants for FY2006 and FY2007
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 to provide maximum state grants 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 2004.
15 For a discussion of the new methodology, see CRS Report RL32716.

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