By Lateefah S. Williams, Esq.
Congress recently passed the so-called “Big Beautiful Bill,” a misnomer if I’ve ever heard one, and President Trump signed it into law on July 4, 2025. There has been a lot of discussion about its impact on various social services and rightfully so. I’m going to focus on its negative impact on special education, particularly with regards to Medicaid funding. I’ll explain it more in the sections below.
What Does Medicaid Have to Do with Schools?
You may be wondering what Medicaid funding has to do with special education. If so, that’s a good question! Most people only see Medicaid as health insurance for low-income families and individuals. However, it is so much more than that. Medicaid also helps schools provide essential services, especially for students with disabilities. Schools use Medicaid funds to pay for health-related special education services, such as speech therapy, physical therapy, and mental health support. Medicaid also funds nurses in some schools.
For example, if a student with a disability needs speech therapy several times a week, Medicaid may help cover the cost if the student is enrolled in Medicaid (based on family income), the service provided is part of the student’s IEP, and the school is set up to bill Medicaid for that service. Without this funding, the school would be forced to find another way to pay for it, which may cause them to reduce the service or eliminate it altogether. This would be especially harmful to low-income students with disabilities or schools with a large number of such students.
What Did the Bill Change?
The new law significantly reduces the amount of Medicaid money the federal government provides to the states. It also gives states more control over how to spend what remains of the lesser funds. That may sound acceptable to some people at first, but here’s the problem: when there’s less funding overall, the states must make difficult decisions. And history has shown us that when funds are limited, services for vulnerable populations, such as special education students, often get the short end of the stick. As a result, special education may not receive the same level of support it once did.
What Could This Mean for Students?
This could create significant issues for students. With less Medicaid funding, schools may feel forced to cut back or postpone services for students with disabilities, even though they are legally required to provide these services. Some schools may not be able to afford specialists like speech therapists or counselors.
This situation puts on added pressure for teachers, parents, and students. It also raises a serious legal concern. Schools are required under the Individuals with Disabilities Education Act (IDEA), a federal law, to provide specific services to students with disabilities. However, if special education funding is insufficient, how can schools meet their obligations? When there are competing interests, will schools continue to do what’s right and follow IDEA?
What Can We Do About It?
First, it’s important to stay informed. Parents, teachers, and school staff should communicate with each other about what’s happening and how it might impact students. Local officials, such as school board members and state and local legislators, need input from those who care about special education funding. If that’s you, it’s important that you make your voice heard.
Additionally, communities may need to find alternative ways to support students through local fundraising, grants, or partnerships with nonprofits. While it’s not ideal, it may provide a way to fill the gap.
Supposedly, the “Big Bogus Bill” (a more accurate name, in my opinion) is intended to improve conditions for American citizens. But, when it comes to Medicaid cuts, it raises significant concerns for special education and low-income communities. If schools lose that funding, students with disabilities may not receive the support they need to succeed. It’s up to all of us to stay alert and advocate for these students.
We at Shefter Law remain committed to ensuring that students with disabilities receive all the services they are entitled to. If you need assistance, please contact us at:
