Governor Newsom signs historic investments to bolster support for special education

What you need to know: Governor Newsom signed legislation to increasing funding for K-12 special education by $2.4 billion - a 43% increase from the year prior.

SACRAMENTO - Continuing the Governor's work to bolster the state's education system and create a stronger learning environment for all students, Governor Gavin Newsom signed AB 126, the education trailer bill for the California state budget that allocated an additional $2.4 billion for special education funding. The legislation builds on billions invested to expand access to Governor Newsom's historic transitional kindergarten, $215 million invested last year to boost child literacy through Literacy Coaches and the Reading Specialists Grant Program, and the state's pioneering effort to provide free school meals for all students - reflecting the state's ongoing commitment to invest in and improve instruction and services for all students, including students with disabilities.

Governor Gavin Newsom joins elementary school students for the signing of AB 126.

This $2.4 billion increase in special education funding - a 43% increase from the 2025 Budget Act - ensures all local educational agencies in the state can receive special education funding at the same rate and will increase the per-student rate to $1,340. These investments contrast with the Trump administration's dismantling of the Department of Education, an action that directly affects the quality of educational services available.

I've heard directly from parents across California: their kids need more, and they deserve better. These actions answer that call. Today, we are making record investments in special education, to build a stronger system that gives every child the opportunity to succeed and leaves California's schools better than we found them.

Governor Gavin Newsom

Governor Gavin Newsom is joined by lawmakers, school leaders, and education advocates following the signing.

"The bold contours of the recently enacted state budget frame the redefinition of public education that has occurred over the last 7 years," said Linda Darling-Hammond, President of the California State Board of Education. "Despite continued revenue constraints and uncertainty around federal funding, the 2026 State Budget continues this administration's strong commitment to sustaining core TK-12 programs while also investing in the future of our schools. These thoughtful investments demonstrate California's continued commitment to opportunity, equity, and long-term success for all students, particularly those with the greatest needs."

"I have heard from families and from educators on the need to support students in Special Education; that is why I am extremely proud of this budget. These investments mean more reading specialists, more behavioral health aides, and more one-on-one support that will directly improve student outcomes," said Assemblymember David Alvarez (D-Chula Vista), Chair of California State Assembly Subcommittee No. 3 on Education Finance. "For students with disabilities, this means real progress in the classroom and beyond. I thank Governor Newsom for his partnership in funding this long-overdue investment that will make a difference for our kids."

"This state budget contains record funding for Special Education to better serve students with disabilities and ensure that families have access to the support services they need," said Senator Sasha Renee Perez (D-Pasadena), Chair of Senate Education Committee and Chair of Subcommittee No.1 on Education. "This historic $2.4 billion increase is the largest investment of its kind in state history and reinforces that our students in Special Education are seen and valued. I applaud Governor Newsom for this important commitment to improving outcomes for California students with disabilities."

The 2026 State Budget includes a historic $80 million in ongoing funding for the special education extraordinary cost pool, which provides reimbursements to special education local plan areas for students with specified high-cost service needs, and the low-incidence disabilities add-on, which provides additional funding to support students with rare, highly specialized needs. The Budget also provides a one-time increase of $30 million for the Supporting Inclusive Practices Project, which provides resources to schools and educators to expand access to the general education environment for students with disabilities.

The Budget includes a one-time $25 million increase for the Inclusive College Technical Assistance Center. The Center facilitates collaboration between local educational agencies and institutions of higher education to expand inclusive college opportunities for students with intellectual and developmental disabilities, help those students develop life skills, and model inclusive postsecondary education communities.

The Governor's Budget provides a one-time investment of $10 million to develop resources and provide technical assistance to support the implementation of alternative pathways and alternative means to a high school diploma for students with disabilities.

Governor Newsom's commitment to TK-12 education

Under the Newsom administration, California has dramatically increased investments in TK-12 public education, with a focus on accelerating learning and prioritizing equity, and has fundamentally transformed the promise of public education in the state. The 2026 Budget Act provided $151.4 billion in total TK-12 education funding - the highest funding ever for California students.

California has expanded access to universal education beginning at age four through transitional kindergarten; broadened access to free before- and after-school, and summer programs to more than 1 million elementary school students, providing nine hours of developmentally appropriate academic and enrichment activities each school day and six weeks each summer. The state has placed literacy coaches in the highest-need schools as part of the comprehensive Golden State Literacy Plan, which includes ensuring that all California students in grades K-2 are screened for reading difficulties to better assess the need for supports for long-term success. California also became the first state in the nation to guarantee universal school meals so that every child receives breakfast and lunch, regardless of family income.

The state's $4 billion Community Schools Initiative that has reached one of every four schools is another cornerstone of this transformation. Rigorous recent research shows that schools participating in this initiative-those that provide comprehensive supports for students and families-demonstrate significantly greater gains in English language arts and mathematics achievement, along with lower chronic absenteeism and suspension rates, compared to similar schools without such supports. The 2026 Budget Act includes $1 billion in ongoing funding for existing community schools and expand the model to 3,700 additional school sites that have large concentrations of students from low-income families, English learners, and youth in foster care.

These transformative investments and initiatives are preparing California's students for success. As demonstrated by the latest statewide testing results, even as the share of socioeconomically disadvantaged students in the tested population has risen, California's students continue to rebound from the pandemic, with measurable gains in every subject tested, at every grade level, and for every student group.