Table of Contents
For this weekly feature, the Texas Council for Developmental Disabilities (TCDD) profiles a noteworthy bill going through the legislative process. The bill may relate directly to TCDD’s Public Policy Priorities or another disability-related issue.
Bill of the Week: SB 568
Senate Bill (SB) 568, relating to special education in public schools, including funding for special education under the Foundation School Program. SB 568 was authored by Sen. Paul Bettencourt from Houston, Senate District 7.
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We’ve created a Bill of the Week one-pager (PDF) for SB 568. This is a simplified explanation of the bill that you can share with your representative and personal network.
Background
Since 2013, Texas has seen a 37.59% growth in its number of special education students (PDF, 57 pages, 1.8 MB), according to the Texas Education Agency (TEA). As a result, school districts across the state face financial challenges in accommodating the growing special education population, with some districts dedicating significant portions of their budgets to special education services.
Fort Bend ISD, for example, serves over 11,000 special education students, which is 14% of its student population. However, this past school year the district faced a $33.6 million shortfall in state and federal funding that the district had to cover on its own. Similarly, Round Rock ISD saw a 25% increase in special education enrollment over five years, with over 6,000 students receiving services. Despite spending $60 million on special education this past school year, the district had to cover $20 million of that amount from its own budget. These funding gaps highlight the growing strain on Texas school districts that seek additional funding to meet the needs of students with disabilities.
In addition to overall special education needs, Texas has also seen a rapid increase in the number of students receiving dyslexia services. Since 2018, the number of students identified with dyslexia has grown from 194,000 to nearly 330,000, representing a 70% increase (PDF, 11 pages, 909 KB). The expansion of dyslexia services has further contributed to a financial burden placed on school districts as they work to meet student needs.
In 2021, House Bill (HB) 1525 established the Texas Commission on Special Education Funding to make recommendations for methods of financing special education in public schools. This bipartisan body — which included three members of the Texas Senate, three members of the Texas House, and one appointee of the governor — held a series of meetings and gathered input from stakeholders and the public. The commission issued a report (PDF, 15 pages, 1.6 MB) to the Legislature in December 2022, which included 14 recommendations. The commission approved most of the recommendations with unanimous support. SB 568 seeks to enact more than half of those recommendations.
What does the bill do?
SB 568 would amend the education code to address funding gaps and improve how special education services are funded in Texas public schools.
Funding Allotments
SB 568 would transition special education funding from a placement-based system to a service intensity-based system. The TEA commissioner would develop eight tiers of support based on average daily attendance. One tier would be specifically for residentially-placed students. Another tier would encompass students who only receive speech therapy as their instructional services.
The bill would also create a new special education services group allotment, which a school district could use for each six-week period in which a student in a special education program receives eligible special education services. The TEA commissioner would establish four service groups to determine funding. The allotment amount will be set by the Legislature in the General Appropriations Act. Regional education service centers would provide training and assistance to each program that qualifies for the funding allotment.
The bill would provide each school district an allotment of at least $500 for each student for whom the district conducted a full and individual initial evaluation during the previous school year.
SB 568 would increase the transportation allotment for special education students from $1.08 to $1.13 per mile.
The TEA commissioner could adjust funding amounts as necessary to comply with state financial support requirements for the 2025-2026 and 2026-2027 school years.
In addition, SB 568 would establish a day-placement program allotment. A regional education service center would make this allotment available in partnership with a school district, open-enrollment charter school, or shared-services arrangement.
Performance Indicators
SB 568 requires TEA to develop, and revise as necessary, a comprehensive system to ensure statewide and local compliance with federal and state special education laws. TEA is the state education agency responsible for carrying out the Individuals with Disabilities Education Act.
TEA would also adopt performance indicators to measure and evaluate the quality of learning and achievement for students receiving special education services. Every year, boards of school districts and governing bodies of charter schools would be required to hold a meeting to discuss the performance of students receiving special education services. The performance indicators would be considered at the annual meeting, and the indicators would include performance on college, career, or military readiness outcomes.
Grant Programs
SB 568 requires the TEA commissioner to establish two grant programs for school districts and open-enrollment charter schools: one to provide innovative services to students with autism, and another to increase local capacity to appropriately serve students with dyslexia. The bill provides eligibility and operational guidelines for the grant programs.
The bill also requires TEA to provide grants to school districts and open-enrollment charter schools to increase the number of qualified and appropriately-credentialed special education staff. This would include special education teachers, special education paraprofessionals, evaluation personnel, ancillary instruction personnel, and related service personnel.
SB 568 increases the annual outcomes bonus available to a school district from $2,000 to $4,000 for an annual graduate enrolled in a special education program.
The bill also establishes parent-directed services for students receiving a special education services grant. TEA would award this grant to students in an amount of at least $1,500.
Educational Residential Placement Option Materials
Finally, the bill requires the Health and Human Services Commission (HHSC) — in collaboration with stakeholders who represent the full continuum of educational residential placement options — to develop and provide materials on educational residential placement options for children who may qualify for placement in a state-supported living center. HHSC would make the materials available to school districts. The materials would be given to parents during admission, review, and dismissal meetings, where residential placement for their children could be considered.
If passed, SB 568 would take effect on Sept. 1, 2025, or immediately if it received an affirmative vote of two-thirds in both the House and the Senate.
“This legislation provides help for the 775,000 special education kids in Texas. It will provide transparency to parents into the agreed-upon services that will provide a student’s [Individualized Education Program] plan, giving parents a better way to make sure schools are delivering those services.”
Sen. Paul Bettencourt, SB 568 author
Where is the bill in the process?
On March 11, 2025, SB 568 received a public hearing before the Senate Committee on Education K-16, where the bill was left pending. When a bill is left pending, this means that the committee did not vote on the bill and it could be considered again at a future committee meeting. You can watch the discussion on the bill here, beginning at the 17:26 mark.
Who supports the bill and why?
The following comments were given as testimony at the March 11 hearing:
Former State Representative and Texas Commission on Special Education Funding Member: Dr. Dan Huberty, who as a member of the Texas House served as chair of the Public Education Committee, testified in support of SB 568. He said the bill was “the most transformative, important piece of legislation that [committee members] will consider this session.” He said that the current “foundation of the special education programs in Texas are fundamentally broken,” and “it is critical that we recognize that changes need to be made [in] how these services are offered.” He said that the gap between special education spending and available funding continues to widen, and it is causing many districts to pull funding from other programs.
Self-Advocate: Maddox Castillo, a law student who has navigated the challenges of his own dyslexia, testified in support of the bill. He shared that, as a child, his parents were forced to spend thousands of dollars on tutoring and special education services outside of his school, and he spent “countless early mornings and late nights to ensure [he] was on the same playing field as [his] fellow students.” He said that without reforms like those proposed in SB 568, countless students with disabilities will continue to be left behind due to a lack of access to necessary services. Castillo said that although he was fortunate enough to have a family with resources to help him manage his dyslexia, students without similar financial privilege will “simply fall through the cracks.”
The following groups also registered their support for the bill: Autism Society of Texas, Bexar County Education Coalition, Coalition of Texans with Disabilities, Conroe ISD Board of Trustees, Cypress-Fairbanks ISD, Disability Rights Texas, Guadalupe County Education Coalition, Pflugerville ISD, Texans Care for Children, Texas Academic Language Therapy Association, Texas Association of School Boards, Texas Commission on Special Education Funding, Texas Dyslexia Coalition, Texas Grandparents Raising Grandchildren, Texas Public Charter Schools Association, and Texas Public Policy Foundation.
Who opposes the bill and why?
Three individuals registered their opposition to the bill but provided no testimony or indication as to the nature of their concern.
Additional Testimony
The following testimony was provided on the bill at the March 11 hearing:
Texas Council of Administrators of Special Education (TCASE): Dr. Andrea Chevalier, director of governmental relations for TCASE, testified that her organization was “extremely grateful for SB 568.” She recommended a variety of modifications to the bill, including what she referred to as their “big ask” regarding the implementation timeline of SB 568, emphasizing the need for a gradual transition to ensure its success. While the bill introduces critical reforms to the special education system, she noted that these changes require extensive training and systemic adjustments for school districts. Chevalier recommended maintaining the current funding model for the first year of the system’s implementation while providing intensive training for administrators and teachers. This approach would help inform educators while ensuring the bill’s reforms are effectively implemented, Chevalier said.
The Arc of Texas: Sabrina Gonzalez Saucedo, director of public policy and advocacy for The Arc of Texas, testified that the reforms included in SB 568 are “a crucial step toward ensuring equitable and adequate funding for students with disabilities across Texas.” She offered two recommendations that she felt would further strengthen the bill. First, she asked that the Legislature boldly invest in special education to support the success of the transition to a funding model based on the intensity of service. The current gap between what districts spend on special education and the funding they receive exceeds $1.7 billion each year. Closing this gap is essential to ensuring that the new funding model works effectively and that all students with disabilities receive the support they need to succeed, she said. Second, Gonzalez Saucedo recommended removing SB 568’s requirement that schools provide parents with information about state-supported living centers (SSLCs) during admission, review, and dismissal meetings. Gonzalez Saucedo said that “prioritizing [SSLCs] in placement discussions, without sharing information about community-based supports and services, could lead to increased institutionalization and family separations rather than supporting children in family-based settings.”
Additional Information
TCDD has identified early childhood and inclusive education as one of its public policy priorities for the 89th Texas Legislature:
Ensure children with disabilities ages 0-22 receive necessary services to promote healthy growth and development to support long-term success and independence. Children with disabilities in Texas deserve access to quality care and education such as inclusive childcare, therapy and case management services, special education services, and transition planning, which meet or exceed federal standards to increase childhood and long-term outcomes.
How much will the bill cost?
The Legislative Budget Board found that, as introduced, SB 568 would cost $397.5 million over the course of the state’s two-year budget period, and would require ongoing state funding of about $180 million per year moving forward.
Is there a House companion to the bill?
There is no House companion to SB 568.
Stay Informed
For the latest information about where SB 568 is in the process, follow the bill on the Texas Legislature Online. To receive future legislative updates from TCDD, follow us on Facebook, X, Instagram, and LinkedIn.
Bill of the Week Updates
Here is an update on previous TCDD Bills of the Week for the 89th legislative session.
SB 57, which would ensure public schools have safety plans and accommodations for students with disabilities during safety drills and disasters or emergencies, recently passed out of the Senate. It now heads to the House for consideration.
HB 2807 has been scheduled for a public hearing before the House Committee on Human Services on Tuesday, March 25. The bill would establish a statewide coordinating council for intellectual and developmental disability services.
HB 645, which would require the implementation of a statewide program to provide certain co-navigation services to people who are deaf-blind, received a public hearing before the House Committee on Human Services on March 18. The bill was left pending.
