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To the Administrator Addressed (TAA) Correspondence

Special Education Day and Residential Placement Programs Funding and Standards Updates

Overview

This correspondence serves to update school systems of the Texas Education Agency’s (TEA) plans to implement Texas Education Code (TEC), §48.304, added by House Bill (HB) 2, Article 4, and Senate Bill (SB) 568 in the 89th Regular Session, which aims to increase the number and capacity of day placement programs. Additionally, the correspondence will provide an update on TEA’s responsibility to approve and maintain a list of approved special education day and residential placement programs, including the development of minimum standards by which each program must abide, to implement revisions to TEC §29.008 made by HB 2 and SB 568.

HB 2 and SB 568 enacted TEC, §48.304, which authorizes TEA to award funds to certain day placement programs that are formed in an effort to increase the availability of these types of programs in all Texas counties.

Additionally, TEC, §29.008, was amended, applicable beginning with the 2026-27 school year, by HB 2 and SB 568 to clarify TEA’s responsibility regarding approving and maintaining a list of day placement and residential placement programs that are available for school systems to contract with should an admission, review, and dismissal (ARD) committee determine that type of placement to be a student’s least restrictive environment (LRE).

This correspondence will focus on what school systems need to know as they start preparing for the 2026-27 school year.

Funding for Day Placement Cooperatives

TEC, §48.304 , establishes a funding allotment for qualifying day placement program cooperatives to support the development and expansion of county-level day placement programs. The funding is intended to increase the availability of day placement programs that provide supports for students with intensive and/or complex support needs. To receive the allotment, the program administrator of the cooperative must agree to serve eligible students within that county, unless the commissioner waives that requirement.

Qualifying day placement program cooperatives will receive $250,000 in the first year of operation and up to $250,000 in each subsequent year of operation. Funding eligibility is limited to one qualifying cooperative per county, and the agency is permitted to authorize funding to no more than 20 per year. Eligible applicants include school districts, regional education service centers (ESCs), and open-enrollment charter schools.

In implementing this allotment program, TEA has determined the following: 

  • To qualify for the funding allotment, any school district, ESC, or open-enrollment charter school that applies must agree to operate its program in compliance with TEC, §29.008, and 19 Texas Administrative Code (TAC) §89.1094, including meeting the minimum standards for special education day placement programs.
  • For school districts, ESCs, or open-enrollment charter schools that geographically span multiple counties, their application must state which county their cooperative is intended to serve.

For the 2026-27 school year, to expedite the timeline for which eligible cooperatives could access the funding provided by TEC, §48.304, TEA is moving forward as follows:

Timeline

Date Event
May 15, 2026  TEA day placement cooperative funding application opens in Qualtrics
May 19, 2026  TEA hosts Special Education webinar and answers questions submitted to DayProgramFunding@tea.texas.gov regarding day placement cooperative funding applications. Register: May 2026 TEA Special Education Webinar
May 28, 2026 
1:00 - 2:00 p.m.
TEA hosts open office hours via Zoom to provide technical assistance and support in completing applications. Register: Office Hours - Day/Cooperative Funding Application Q&A 
June 11, 2026 
11:00 a.m. -noon
 TEA hosts open office hours via Zoom to provide technical assistance and support in completing applications. Register: Office Hours - Day/Cooperative Funding Application Q&A
June 26, 2026  Application submissions due by 11:59 p.m.
July 15, 2026  TEA issues preliminary notices to programs selected for funding
September 2026

Within 10 business days of the rule’s effective date, TEA provides final notice of award to selected programs.

Funding for selected programs under TEC, §48.304 will flow through Other Programs on the Summary of Finances reports based on the schedule of FSP payments.

Questions related to the day placement cooperative funding allotment may be directed to DayProgramFunding@tea.texas.gov.

Minimum Standards and Expanded Authority and Responsibility for Special Education Day and Residential Placement Programs

TEC, §29.008, effective September 1, 2026, specifies that the commissioner shall set minimum standards for day and residential placement programs. Beginning in the 2026-27 school year, school systems can expect the implementation of expanded minimum standards for day and residential programs. These minimum standards are intended to provide clear, standardized requirements for day and residential placement programs and improve monitoring and oversight activities. School systems should anticipate updated guidance on day and residential placement program documentation, data submissions, and provider compliance.

Both TEC, §29.008 and §48.304, require commissioner rules, which are expected to be published as proposed in the Texas Register on May 15, 2026.

Existing and new providers will be required to comply with the elements in the minimum standards document linked to this TAA.

Training and Support around New Minimum Standards

 The Special Education Day and Residential Placement Programs team will offer training and technical assistance to stakeholders to support the new minimum standards starting in June 2026. These sessions will provide an overview of key requirements, timelines, and expectations for the 2026-27 school year, along with opportunities for questions and clarification. Additional details regarding technical assistance sessions and registration will be shared in the coming weeks through ESCs, TEA-LEA webinars, and the monthly TEA special education newsletter.

Questions related to the minimum standards for day and residential placement programs may be directed to SpedDayandResidential@tea.texas.gov