VA: VA school divisions repay nearly $30 million in misused special ed funds; one division disputes

Oct 14, 2025

Virginia Mercury

Three school divisions were alerted that they misused federal funds intended for students with disabilities have made nearly $30 million in total repayments, according to the state Department of Education, which will be returned to the federal government. Still, one division is actively disputing the alleged misappropriation. The Essex, Northumberland, and Loudoun County school divisions’ misuse of federal money for special needs students became widely known after the Virginia Department of Education (VDOE) investigated Loudoun County Public Schools in May. VDOE later confirmed to the Mercury that school divisions in the Essex and Northumberland counties had also been found in violation of the Individuals with Disabilities Education Act. This law requires school divisions to meet a Maintenance of Effort (MOE) obligation, which stipulates that spending on children with disabilities fueled by local or state funds not dip below the level of the preceding fiscal year.

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