MD: Maryland is rethinking how it pays for special education

Jan 20, 2026

The Baltimore Banner

Maryland’s education department awarded a major contract to the American Institutes for Research, asking the Virginia-based nonprofit to recommend a model that would adequately fund special education. They’ll answer a multipronged question: What is the true cost of teaching children with disabilities in Maryland? And how should that money be parceled out, considering the vastly different needs of each student? The state’s funding formula allocates a set amount of dollars for each student with disabilities, no matter the nature of their needs. Some people argue that this model doesn’t distribute the money fairly. The study, mandated by the legislature, will consider an alternative formula that sets up different levels of funding. Dollars could be distributed depending on the specifics of a student’s disability or the services they need. This model is a more common approach to funding special education across the country.

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