This is the second piece in a three-part series on the 2026 move of special education oversight out of the U.S. Department of Education. Part 1 established what the medical and educational models of disability actually are, and why IDEA was built to ask what a child needs rather than what a child has. Before making the case for what is worth defending in that framework, this piece owes the reader an honest accounting of where it has failed — and it has, in specific and documented ways.
You are reading Part 2 of 3: IDEA's unmet forty percent funding promise, a law frozen since 2004, and a compliance culture that has, in some corners of the field, replaced the outcomes it was built to protect.
Haven't read Part 1? Start with Medical vs. Educational Model of Disability.
A Room Full of Parents Who Refused
In 1950, it was common (not unusual, not rare, not the practice of outlier physicians) for doctors to tell parents that the best place for their child with an intellectual or developmental disability was in an institution. They delivered the advice as clinical guidance. It carried the authority of medicine, the weight of professional consensus, and the implicit message that a family’s instinct to keep their child home was sentimental rather than rational. The institutions existed precisely because the medical model had determined that disability was a condition requiring management in a specialized facility, away from schools, away from communities, away from the ordinary life of childhood. But some families refused.
In church basements and at kitchen tables, families came together, drawn by solidarity to prove that the impossible was possible. By 1950, parent groups from across the country met in Minneapolis, Minnesota, to formally organize what would become The Arc (then called the National Association of Parents and Friends of Retarded Children) to expand community services and civil rights for people with intellectual and developmental disabilities. At that founding moment, little was known about intellectual disability, its causes, or its possibilities. Virtually no programs supported families, no laws protected their children against exclusion, and no federal framework acknowledged those children’s right to an education. What there was, in clinical abundance, was advice to institutionalize.
The organization those parents built would go on to bring the lawsuit that became the legal foundation for the Individuals with Disabilities Education Act (IDEA), lobby for the law’s passage, and defend it against defunding in every decade since its passage. In 2026, it stands as one of the leading voices warning that the federal administration of that same law is being returned—structurally, institutionally, philosophically—to the framework those parents organized against in 1950. The medical model. The same argument. Seventy-six years apart.
That is not a rhetorical flourish. In April 2025, the sitting Secretary of Health and Human Services, the official whose agency now manages the day-to-day administration of IDEA, stood at a podium and described children with autism using words such as epidemic and disease. He stated that “Autism destroys families” and claimed that children with autism will “never pay taxes, they will never hold a job, they will never play baseball, they will never write a poem, they will never go out on a date” (Kennedy, 2025).
Every clause of that sentence was said to parents in 1950, usually across a doctor’s desk, usually as the preface to commitment papers. The parents who started The Arc heard it about their own children. Their answer was not a rebuttal. It began as a movement — and, eventually, became a body of evidence.
The Secretary later claimed he had been describing only those children most profoundly affected. The narrowing does not rescue the argument; it restates it. HHS later told the Washington Post that Kennedy had been describing those severely affected and that his remarks were not a general characterization (Jacobson, 2025). The medical model’s prediction of incapacity for a specific category of children has a long history, and it has been wrong in exactly this form before.
When Congress enacted the Education for All Handicapped Children Act in 1975, it uncovered the troubling reality that one million children with disabilities were excluded from public schools (Education for All Handicapped Children Act, 1975). These children were shut out because the prevailing view held that they were incapable of learning. The law those parents won rested on a premise established in the landmark PARC v. Pennsylvania consent decree, entered in 1971 and approved and adopted in final amended form in 1972: the principle known as “zero reject,” which holds that every child is educable and that no child’s access to education may turn on anyone’s prediction of that child’s future. The nevers are not a diagnosis. They are a prediction — and predictions of this kind have a record.
What follows is a story of a promise made and broken, twice. The law itself has not been meaningfully updated in over two decades, and in many regions, compliance processes have shifted focus from meaningful support to documentation. The people most committed to it have also been loudest in criticizing, because commitment and honesty are not in conflict, and because the strongest case for fixing something is an accurate account of what is actually broken.
The argument that follows is not a defense of the status quo. The status quo has failed students with disabilities in specific, documented, and consequential ways. What follows is a defense of the framework itself, and of the federal accountability structure built to enforce it. That framework's failures stem from political will and chronic underfunding. Those are different problems with different solutions, and conflating them, treating implementation failures as evidence against the framework, is precisely how a system built to protect the most vulnerable students in American public education gets dismantled while its defenders are still trying to explain what went wrong.
The Promise Made in 1975 — and the Problem Built Into It
When Congress passed the Education for All Handicapped Children Act in 1975, it made a commitment never made before: the federal government would help states cover the additional costs of educating students with disabilities. The formula sounded specific. The federal government would contribute up to 40% of the national average per-pupil expenditure for each student served. The formula named a share of the cost, but not the cost itself. Educating a student with a disability was estimated, even then, to cost roughly twice as much as a district spent on a general education student.
Forty percent was not a calculation. It was a compromise — a figure whittled down to what could clear committee, survive the annual gauntlet of appropriations, and still be called a commitment. Moreover, it was further softened by two of the most consequential words in the statute: “up to.” Still, it acknowledged that the mandate placed on states and districts was real, that it would cost money, and that the federal government bore some responsibility for meeting it.
The problem was structural, and it was visible the day the bill was signed. President Ford signed the legislation reluctantly, opening his signing statement with the word “unfortunately” and warning that the bill promised more than the federal government could deliver. He wrote that its strongest supporters were falsely raising expectations by claiming authorization levels that were excessive and unrealistic (Ford, 1975).
The core flaw was that Congress authorized the forty percent commitment but did not mandate it. Authorization is permission, but mandated appropriation is payment. IDEA’s funding was classified as discretionary, requiring it to compete each year in the annual appropriations process against spending for defense, infrastructure, health care, and every other federal priority. The forty percent was a ceiling, not a floor. And Congress has never come close to reaching it.
In the more than fifty years since 1975, federal funding for school-age special education services has never met the 40% threshold. Not once. Congressional Research Service figures put the FY2025 federal contribution at roughly 10 percent of the national average per-pupil expenditure — just over a quarter of what was promised — covering only a fraction of what states and districts are legally required to provide.
The shortfall is money that states and local school districts must absorb: money pulled from general education budgets, from staffing, from programs that serve students who are not on IEPs (the individualized education programs that anchor each eligible child’s services). When a district is legally required to provide services it cannot fully fund, the consequences can affect every student in the building.
That shortfall has a shape inside a building. It is the speech-language pathologist carrying a caseload of eighty students across three campuses, delivering thirty-minute sessions in groups of four because the schedule allows nothing else. It is the evaluation that waits because the district has one diagnostician where it needs three, and the referral that does not get made because everyone already knows how long the wait is. It is the paraprofessional position posted in July, reposted in September, and quietly absorbed by a teacher in October. None of that appears in a compliance report. Every bit of it appears in what a child actually receives.
Congress recognized this failure and attempted to remedy it. When Congress last reauthorized IDEA in 2004, it wrote a seven-year ramp into the law: specific funding levels, year by year, designed to reach full funding by 2011. It was the second time Congress made the promise. The second time that it set a specific deadline. And the second time, the deadline passed without the funding arriving. 2011 funding reached neither the 2004 maximum grant level nor the original 1975 full-funding level. The IDEA Full Funding Act, a bill that would make the 40 percent commitment mandatory rather than merely authorized, has been introduced in Congress repeatedly since the mid-2000s, but has never passed (Huffman & Van Hollen, 2025).
The Arc has been at this table the entire time. The organization that helped build IDEA’s funding commitments into the law has spent five decades watching those commitments go unmet, and has been among the most consistent advocates for full funding. The Arc has also fought off repeated attempts to turn disability funding into block grants, most visibly efforts to cap Medicaid. These proposals would have severed the accountability strings attached to federal dollars. The argument The Arc has made about Medicaid block grants is identical to the argument being made now about IDEA: flexibility without accountability is not reform. It is abandonment dressed as flexibility.
The lack of funding is a fifty-year, bipartisan failure — no administration, Republican or Democratic, has closed the gap. It is the single largest structural failure the field has lived with for half a century. Naming it honestly is not a concession to the system’s critics. It is the precondition for understanding what would actually fix it.
The Law Frozen in Time
In December 2004, President George W. Bush signed the reauthorization of IDEA at a ceremony attended by members of Congress, disability advocates, children, and families. The reauthorization was genuinely significant. It strengthened accountability for student outcomes in ways the 1975 law had not, requiring states to measure and report how students with disabilities were performing, not merely whether they were being served.
It rejected the IQ-achievement discrepancy model for identifying specific learning disabilities, opening the door to newer ways of identifying learning disabilities — including response to intervention (watching how a child responds to extra help) and the strengths-and-weaknesses approach that evaluators in Texas and across the country now use daily. It refined procedural safeguards, strengthened transition requirements, and, through those specific funding authorization levels, finally attempted to deliver on the forty percent promise.
That was twenty-two years ago. IDEA has not been reauthorized since.
That gap has consequences. Congress reauthorizes large federal statutes precisely because the systems they govern change — and manages this routinely when it wants to. The National Defense Authorization Act has passed every year for six decades; the farm bill roughly every five years since the Great Depression. Meanwhile, the system IDEA governs has changed as much as any in American public life. The population served has grown from roughly 6 million in 2004 to more than 8 million today (Advocacy Institute, 2026). COVID-19 accelerated identification rates and widened service gaps in ways the 2004 framework never anticipated.
The workforce shortage has deepened into a crisis, especially in rural and high-poverty districts. Assessment science, early-intervention evidence, and the understanding of how disability intersects with language, culture, and socioeconomic status have all outgrown what the statute reflects.
The law sits still. The field it governs does not.
Parent advocates recognized this gap early. Among The Arc’s legislative priorities after 2004 was expanding IDEA’s transition provisions — the bridge between the school years the law covers and the adult life it does not. The Arc’s own evolution makes the point: founded as a children’s advocacy organization, it became a lifespan organization because families taught it something IDEA never fully encoded — the school years end, but the need doesn’t. IDEA covers birth through age twenty-one. The Arc has come to cover the rest because the system built for school years was never designed to connect to what comes after.
This failure has a specific shape. Students who exit special education at twenty-one face a transition cliff the 2004 law acknowledged but did not solve. Transition plans are mandated, and yet employment, postsecondary, and independent-living outcomes for these young adults remain far below their nondisabled peers — the framework is present on paper, inadequate in practice. The Arc has spent two decades filling gaps IDEA was supposed to close and did not.
The international record sharpens this picture. Finland’s tiered support model connects seamlessly to adult life and community participation, not just the school years. Italy’s commitment to integrazione scolastica was built on evidence that students educated alongside peers developed significantly better than those in segregated settings (D’Alessio, 2011; Demo et al., 2023) — evidence about lifetime community participation, not just academics. The strongest international examples share something else. It is a continuum that does not end at twenty-one and does not need a separate organization to fill what the system left undone.
IDEA was designed for the school years. The Arc has spent decades building the infrastructure for everything that follows. Nothing about that division was designed. It is a gap in the law that parent advocates have been filling with organizational capacity because Congress has not returned to the statute to fill it with policy.
Reauthorization is not a technical exercise. It is the mechanism by which a law updates itself to serve the students who actually exist, rather than the students who existed when it was last written. The students entering special education today were not born when IDEA was last reauthorized. Their teachers were in middle school. Their diagnosticians were in college. The field has two decades of research and hard-won implementation experience that the statute does not yet reflect. That is a failure, not of the educational model, not of the framework Congress built in 1975 and refined in 2004, but of the political attention required to keep a law current. And the proposed remedy (block grants, HHS placement, reduced federal oversight) would not fix it. A block grant does not update IDEA’s transition framework. Moving the federal office that oversees special education to HHS does not close the gap between age twenty-one and the rest of a life. The failures of a frozen law require a legislature willing to return to it, not an administration willing to route around it.
When Compliance Became the Product
There is a third failure worth naming — the one that practitioners know most intimately, and the one most likely to find a sympathetic audience among the people who work inside the system every day. It is not a failure of funding or legislative attention, but of implementation culture: the way a law built around the substantive educational needs of individual children has, in many districts and practices, become a compliance exercise primarily.
This is not a conservative critique of special education. It is a practitioner critique, voiced most consistently by the people most committed to what IDEA was designed to accomplish. The procedural machinery of special education (evaluation timelines, IEP documentation requirements, prior written notice obligations, manifestation determination protocols, due process procedures) has been built in response to documented failures: a pattern of schools denying evaluations, placing students inappropriately, disciplining students for disability-related behavior, or providing services on paper that did not exist in practice. The procedures are not bureaucratic excess. They are the scar tissue of a system that repeatedly showed it would not protect students unless required to do so.
And yet the scar tissue has, in some corners of the field, become the body itself. Districts learn to be procedurally compliant. They develop internal systems that measure documentation completion and call it service quality. Evaluation reports get written to establish eligibility, and the instructional question goes unasked. IEPs are drafted for the auditor rather than for the child.
Parents who understand the procedural framework receive better services than parents who don’t — not because the law intended that outcome, but because a system organized primarily around compliance produces it. The families most dependent on IDEA’s substantive guarantees are often the ones least equipped to navigate its procedural complexity. And a compliance culture, whatever its origins, tends to serve the families who can demand compliance — not the families who cannot.
The Arc has seen this from both sides. As a national advocacy group, it has spent decades helping families navigate the procedural framework by developing plain-language resources, training parent advocates, and supporting due process proceedings. Its Arc@School initiative exists precisely because the gap between what IDEA guarantees and what families can access without guidance is wide enough to require a dedicated program to bridge it. That gap is itself evidence of a system in which procedural complexity has outpaced substantive accessibility. A law whose protections require professional advocacy training to fully access has drifted from its intended users.
The compliance-culture critique is one the system’s opponents have used to argue for dismantling its accountability structures, as though the best solution to too much paperwork is to remove accountability. The documented history of what happens when IDEA’s accountability requirements are weakened (the noncompliance, the waiting lists, the segregated placements, the paper compliance reviews that bore no relation to what children were actually receiving) makes clear that the procedural requirements exist because the substantive rights do not enforce themselves.
When compliance crowds out quality, the remedy is not to strip the requirements away. It is to rebuild the culture around outcomes rather than documentation, which requires exactly the kind of federal guidance, technical assistance, and monitoring infrastructure that the current administration is dismantling.
The Office of Special Education Programs spent four decades building the interpretive and accountability infrastructure that makes IDEA’s procedural requirements meaningful, not merely burdensome. Its Dear Colleague letters (the federal guidance documents that tell states and districts how a statute applies in practice) and its policy guidance are not regulatory overhead. They are the accumulated answers to fifty years of questions about what the law actually requires: the substrate on which practitioners, state education agencies, and families build their understanding of what IDEA means in practice.
When that infrastructure atrophies, whether through staff reductions, institutional disruption, or the dissolution of the expertise that built it, the procedural requirements do not disappear. They persist, but without the guidance infrastructure that makes them interpretable. The result is not less compliance burden. It is more uncertainty, more variation across states and districts, and less substantive protection for the students the procedures were designed to serve.
And for families, the uncertainty now has a new dimension. Those who spent years learning which agency held their child's rights (where the guidance lived, where a complaint went, whose letters counted) must now reckon with two federal systems: one that retains the law's educational machinery, and one that speaks the medical-model language the law was written to escape. The compliance maze did not get simpler when its architects were dispersed. It got a second building.
The International Mirror, Revisited
The first post in this series established that IDEA's framework is neither uniquely American nor ideologically driven — countries worldwide have independently reached the same conclusions and adopted versions of the educational model. That holds here too. The failures documented in this post — unmet funding, a frozen statute, a compliance culture that rewards paperwork over service — are not uniquely American either. The international record has something specific to say about what happens when the model is right but underfunded.
Finland’s tiered support system is frequently cited as a model of inclusive special education. Less often cited is what makes it work: heavy investment in teacher training, small classes, and a workforce skilled enough that early support often prevents a formal eligibility determination entirely. Finland did not find a model that works without money. It spent the money.
Italy’s commitment to full inclusion — segregated special schools largely dismantled in 1977, less than one percent of disabled students in separate settings today — depends on the same infrastructure. Italian researchers have a name for what happens when staffing lags behind the mandate: micro-exclusion. A child is enrolled in general education on paper but spends much of the day pulled aside, handed to a support teacher because the classroom teacher never got the training to serve them. American families do not need that translated. It is the self-contained classroom on a general education campus. It is the mainstreaming minutes an ARD committee writes in good faith, and a chronically vacant paraprofessional position quietly unwrites. The mandate is real in both countries. The exclusion happens in the gap between the mandate and the funding.
Latvia shows where the alternative leads. Its Pedagogical-Medical Commission produces what the medical model always produces: slower identification, more restrictive placement, lower expectations — and adult outcomes among the poorest in the EU, with employment near the bottom and an elevated poverty gap. No single country proves a causal case alone, but the pattern holds across the three cases examined here: a prediction of limited capacity, and a system built to match it. Latvian researchers now calling for reform are making this post’s argument from inside a country that never made the pivot the U.S. made in 1975.
Taken together, the international record does not validate the American status quo. It validates the framework — the educational model, needs-based eligibility, the presumption of inclusion — while showing that the framework requires sustained investment and political attention to deliver what it promises. The countries with the strongest results did not find a better philosophy. They funded the one they had.
The lesson is not that the United States should dismantle IDEA and start over. It is that the United States should fund IDEA to the level promised in 1975, reauthorize it for the fiscal year 2026, and rebuild the compliance culture around what students actually receive. That is a harder argument than "the system is broken, move it to HHS." It requires sustained congressional attention this issue has not gotten in two decades, a funding commitment promised twice and delivered never, and the institutional patience for change measured in years, not a single reorganization.
It is also the only argument the evidence supports.
In Defense of a Broken Promise
Return again to Minneapolis in 1950. The parents who organized The Arc that year had no system to defend. They were building one, arguing against the professional consensus of the time, that their children deserved to be in schools and in communities rather than hidden away in facilities. They were making a claim about human dignity that the medical model, whatever its intentions, had consistently failed to honor.
Through twenty-five years of advocacy and litigation, they built IDEA: a law that codified their argument in federal statute and gave it teeth for enforcement. In the decades since, they have built the infrastructure for implementing it: the interpretive guidance, the compliance monitoring, and the lifespan supports that extend beyond the school years the law covers.
And what they are saying in 2026, with the same precision and the same urgency they have brought to every threat to that infrastructure, is that the move now underway is not reform. It is regression. It is the return of a framework that the evidence examined here consistently shows produces worse outcomes for students with disabilities — not because of malice, but because the medical model asks the wrong question. It asks what a child has. IDEA was built to ask what a child needs.
The system that asks what a child needs has failed to deliver on its own promises — the funding, the reauthorization, the compliance culture all fall short, exactly as documented above. These are real failures. They deserve honest acknowledgment, not as concessions to those who’d dismantle the system, but as the diagnosis genuine reform requires.
The Arc has been making that diagnosis, and demanding that remedy, for the entire life of the law. The organization founded by parents who refused the medical model's verdict about their children has never confused the system's shortcomings with failures of the framework itself. It has consistently argued, with evidence, where the failures actually originate. The answer to an underfunded mandate is full funding. The answer to a frozen law is reauthorization. The answer to a compliance culture is federal investment in the guidance and technical assistance that orients compliance toward outcomes.
That argument asks more of a reader than the clean narrative of a broken system replaced by something better. It offers the harder narrative of a system worth fixing — one whose failures are real and whose framework is right, and whose students cannot afford to wait for a political environment more hospitable to the sustained attention that fixing it requires.
The parents who organized in Minneapolis in 1950 were told the system was working. The system was telling them and their children that there was no place for them. They organized anyway, and litigated, and lobbied, and built — and three generations later their children’s children are protected by a law that would not exist without them.
That is the tradition IDEA belongs to. That is what is worth defending — not because it has kept every promise, but because the alternative is a framework that never made them.
This is the second piece in a three-part mini-series within The Policy Landscape. The pieces are designed to be read together, though each stands on its own.
Coming September 1: The Department That Wasn't Supposed to Last. A history of federal education oversight from 1867 to the present: what it built, what it protected, and what the record shows about what happens to students with disabilities when it disappears.
Coda, September 15: What Holds: Which Protections Survive When Federal Oversight Recedes. Which state protections are freestanding, which only look like they are, and how to tell the difference, with Texas as the worked example.
If funding models and compliance timelines are part of your day-to-day, the Barber Sped Hub's Intensity of Services Funding Model and Texas Sped Law Quick Reference are built specifically for that work.
References
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- The Arc of the United States. (n.d.). About The Arc. https://thearc.org/about-us/
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- The Arc of the United States. (2025). The Arc defended Medicaid and education against renewed threats. In The Arc’s history. https://thearc.org/about-us/history/
- The Arc of the United States. (2026, June 16). Moving special education and civil rights out of Education Department risks a patchwork of rights for students with disabilities. https://thearc.org/blog/moving-special-education-and-civil-rights-out-of-education-department-risks-a-patchwork-of-rights-for-students-with-disabilities/
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- Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400–1482 (2004).
- Individuals with Disabilities Education Improvement Act of 2004, Pub. L. No. 108-446, 118 Stat. 2647 (2004).
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- Rektina, A. (2023). Breaking free from the medical model approach in special education. Paper presented at the Early Childhood Education Conference (ECE2023). https://papers.iafor.org/wp-content/uploads/papers/ece2023/ECE2023_72290.pdf
- Texas Education Agency. (2017). 19 TAC Chapter 239, Subchapter C: Educational Diagnostician Certificate. https://tea.texas.gov/about-tea/laws-and-rules/sbec-rules-tac/sbec-tac-currently-in-effect/ch239c.pdf
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- U.S. Department of Education, Office of Special Education Programs. (n.d.). IDEA history. https://sites.ed.gov/idea/IDEA-History