Sponsor
Bill Cassidy
Senator · R-LA
Senator · R-LA
The bill preserves Education Department control and grandfathered ED–HHS arrangements to keep services stable for students and schools, trading off reduced cross-agency flexibility, potential higher costs, and administrative uncertainty about future arrangements.
People with disabilities and the schools, state and local education agencies, and federal staff who support them keep existing ED–HHS arrangements in place (grandfathered as of Feb 1, 2025 and renewable), avoiding immediate disruptions to services, funding flows, and workforce transitions.
State and local education agencies, schools, and higher education institutions retain program oversight and decision-making authority within the Department of Education (OSERS), keeping special education policy, funding, and accountability under ED rather than transferring that authority to HHS.
Students with disabilities and the providers of health-related school services may experience reduced coordination between education and HHS-run health programs, potentially worsening access to integrated care and supports.
State and local education agencies and schools may lose opportunities to leverage HHS technical expertise, shared systems, or economies of scale for special education services, which could increase program costs or slow improvements.
Federal agencies, contractors, grantees, and some state/local partners face administrative uncertainty about what ED–HHS arrangements will be permissible after Feb 1, 2025, which could delay procurements, renewals, and program changes.
Based on analysis of 2 sections of legislative text.
Bars future ED transfers or contracts assigning OSERS functions to HHS, while grandfathering arrangements in effect on Feb 1, 2025 and allowing their renewal.
Official title: Prohibit the transfer of the functions of the Office of Special Education and Rehabilitative Services.
Introduced July 21, 2026 by Bill Cassidy · Last progress July 21, 2026
Prohibits the Department of Education from transferring, contracting, or otherwise delegating functions of the Office of Special Education and Rehabilitative Services (OSERS) to the Department of Health and Human Services (HHS) for future arrangements, while preserving and allowing renewal of any ED–HHS arrangements that were in effect on February 1, 2025. It also clarifies that several statutory authorities that normally permit interagency transfers, joint funding, or procurement do not apply to OSERS functions except for the grandfathered agreements.