A New Jersey Senate committee has advanced legislation that would permanently change how the state funds special education services by basing aid on the actual number of students receiving services in each district rather than a statewide estimate.

The bill, sponsored by Democratic Senators Troy Singleton and Vin Gopal, was approved unanimously by the Senate Education Committee and would revise portions of the state’s school funding formula established under the 2008 School Funding Reform Act.

Under current law, special education aid is distributed using a census-based formula that assumes a fixed percentage of students in every district require special education services. Supporters of the bill argue the formula does not accurately reflect the needs of individual districts, where the percentage of students receiving services can vary widely.

“Every school district should receive funding that reflects the needs of the students they actually serve,” Singleton said in a statement. He said the legislation would provide more accurate and equitable support for special education services while improving stability and predictability in school funding.

Gopal said the measure would ensure state funding better reflects the realities districts face in classrooms.

“School districts with higher numbers of students requiring special education services should have confidence that aid calculations are tied to actual enrollment and student need, not a one-size-fits-all estimate,” Gopal said.

According to supporters of the legislation, the percentage of students requiring special education services has increased in recent years. Data from the New Jersey Council on Developmental Disabilities shows statewide special education costs have risen 44% since 2009, while the average per-student cost increased from $19,519 in fiscal year 2009 to $38,984 in fiscal year 2026.

The legislation also seeks to address disparities among districts. Sponsors said some districts identify fewer than 5% of students as requiring special education services, while others identify nearly 40%.

State officials already moved away from the census-based formula in the fiscal year 2026 budget by using actual district enrollment data to calculate special education aid. The same approach was included in Gov. Mikie Sherrill’s proposed fiscal year 2027 budget.

If enacted, the bill would make that funding approach permanent in state law.