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Intensity of Services Funding
HB 2 / SB 568 — 89th Session — Effective SY 2026–27
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💰 Intensity of Services Funding Model

Texas is replacing instructional arrangement/setting-based special education funding with a service intensity model driven by individual IEP documentation. Understanding this framework helps diagnosticians write FIEs that give ARD teams what they need to tier students accurately.

🆕 NEW SY 2026–27 HB 2 / SB 568 · 89th Session TEC §48.102 & §48.1021 Effective September 1, 2026
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Transition Year Alert: During SY 2026–27, districts must report BOTH the old instructional arrangement/setting codes AND new tier/service group data. Existing IA/setting codes carry forward automatically from the Summer PEIMS submission — districts only need to add the new tier elements. Tier data for at least 50% of students is due by October 8, 2026 (1st Six-Weeks Attendance); remaining students by December 3, 2026 (2nd Six-Weeks). See the TEA TAA Letter (May 28, 2026) for full updated requirements.

Scope: This page is a diagnostician-facing orientation to the new funding framework — not an ARD or IEP tool. Tier determination is an ARD committee function driven by IEP documentation. The TEA Special Education Funding Tool (linked in TEA Resources tab) is the official instrument for calculating tiers and service groups.
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Old Model → New Model: The Core Shift
New SY 2026–27
Old system (through SY 2025–26): Funding was tied to instructional arrangement/setting codes — essentially, how many minutes per day a student spent in a special education setting. A student spending more time outside general education generated a higher funding weight, regardless of the actual intensity of services required.
New system (effective September 1, 2026): Funding is tied to the intensity of specially designed instruction (SDI) and related services documented in a student's IEP, regardless of where those services are delivered. A student in a general education classroom who requires intensive daily support can now generate higher funding than one in a self-contained setting who requires minimal intervention.
AuthorityHB 2 / SB 568, 89th Regular Session · TEC §48.102 (amended) and §48.1021 (new), effective September 1, 2026
Why this matters for diagnosticians: The FIE is the evidentiary foundation that ARD committees use to build IEPs. If the FIE clearly documents the type, frequency, and nature of required SDI — including specialized provider needs, ratio requirements, and equipment — the ARD team has the evidence needed to tier accurately.
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Two-Component Funding Structure
Structure
The new system has two funding components that work together:
🏷️ Intensity Tiers (1–8)
Base funding determined by scoring a student across 5 domains from their IEP. Composite score maps to one of 8 tiers. Higher tier = higher base funding weight.
➕ Service Groups (1–5)
Add-on funding for students whose IEPs require additional resources beyond the base tier — primarily related services and 1:1 staffing ratios.
TEC§48.102 — Intensity Tiers · §48.1021 — Service Groups
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Transition Year Funding Guarantee (SY 2026–27 Only)
SY 2026–27 Only
During the 2026–27 transition year, TEA has guaranteed that no district will receive less special education funding than it would have received under the old instructional arrangement system. The new system adds a statewide $250 million increase, distributed at settle-up (September 2027) based on actual PEIMS data.
Beginning SY 2027–28: The old instructional arrangement/setting codes go away entirely. Funding will be based solely on the new intensity of services model. Districts should plan accordingly.
AuthorityTEC §48.1022(b) — Transition year funding floor and $250M statewide increase
Note: Tier 1 and Tier 8 are defined in statute. Tiers 2–7 are established through commissioner rules currently in draft form (as of April 2026) and are subject to change before final adoption. The tier weights (funding amounts) will not be finalized until settle-up in September 2027.
Tier Student Profile Source
1
Speech Therapy Only
Student receives speech therapy as their only instructional special education service — no other SDI beyond speech.
Statute
2
Minimal SDI Support
Low composite domain score. Student requires some SDI but with minimal intensity across domains (draft rules — subject to change).
Draft Rule
3
Low-Moderate SDI Support
Some domain areas show minimal support needs; others show moderate. Composite score in low-moderate range (draft rules).
Draft Rule
4
Moderate SDI Support
Multiple domains require moderate support levels. Composite score in middle range (draft rules).
Draft Rule
5
Moderate-High SDI Support
Several domains with moderate to significant support needs. Composite score upper-middle range (draft rules).
Draft Rule
6
High SDI Support
High composite score across multiple domains. Significant SDI required in several areas (draft rules).
Draft Rule
7
Very High SDI Support
Near-maximum composite score. Significant support needs across most or all domains (draft rules).
Draft Rule
8
Residential Placement
ARD committee has determined that a residential placement program is the student's least restrictive environment (LRE) for educational purposes.
Statute
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Scoring Process: Domains → Composite Score → Tier
Process
Each of the five domains is scored independently on a 0–3 scale based on four factors. The highest factor score determines the domain score (not an average). Domain scores are then summed for a composite score, which maps to one of the 8 tiers.
0
No support required for FAPE
1
Minimal support required
2
Moderate support required
3
Significant support required
Key rule: If you cannot find documentation in the student's IEP that a particular level of support is required for FAPE, you cannot assign that score. The default is always 0 — "No support required for FAPE." When uncertain between two ratings, choose the lower one. IEP documentation quality is everything.

Each domain is evaluated using the student's current IEP documentation. Within each domain, four factors are assessed. The highest factor score (0–3) becomes the domain score.

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Curriculum & Instruction
  • Type, nature & frequency of SDI
  • Specialized provider requirement
  • Required staff-to-student ratio
  • Specialized equipment or technology
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Behavior
  • Type, nature & frequency of behavioral SDI
  • Specialized behavior provider requirement
  • Required staff-to-student ratio for behavior
  • Specialized equipment or technology for behavior
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Communication
  • Type, nature & frequency of communication SDI
  • Specialized communication provider
  • Required staff-to-student ratio for communication
  • Specialized AAC or communication technology
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Independent Functioning
  • Type, nature & frequency of adaptive SDI
  • Specialized provider for independent functioning
  • Required staff-to-student ratio
  • Specialized equipment or adaptive technology
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Personal Care / Health
  • Type, nature & frequency of personal care SDI
  • Specialized health care provider
  • Required staff-to-student ratio for personal care
  • Specialized health equipment or technology
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What Each Factor Examines
Detail
① Type, Nature & Frequency of Services
How often does the student receive this type of SDI, and how specialized is it? Daily intensive support scores higher than weekly pull-out.
② Specialized Provider Required
Does the IEP specify that services must be delivered by a provider with specialized credentials (e.g., licensed SLP, BCBA, orientation & mobility specialist)?
③ Specific Staff-to-Student Ratio Required
Does the IEP specify a required ratio (e.g., 1:1, 1:3) for delivering services? Mandated ratios indicate higher intensity.
④ Specialized Equipment or Technology Required
Does the student's FAPE require specialized equipment, assistive technology, AAC devices, or medical equipment that must be provided by the district?
Critical reminder: A factor can only be scored above 0 if the requirement is explicitly documented in the student's IEP as necessary for FAPE. ARD committees cannot assign scores based on what they know about the student — it must be in the IEP.

Service groups are add-on funding layered on top of a student's intensity tier. They recognize that some students require additional measurable resources to implement their IEPs, beyond what the base tier captures. A student can qualify for a service group in addition to their tier — these are not mutually exclusive.

Group Description Category
1
Student requires a limited amount of related services beyond those captured by the tier (e.g., occasional OT, PT, or other related services at lower frequency). Related Services
2
Student requires a moderate amount of related services documented in the IEP — more frequent or involving more service types than Group 1. Related Services
3
Student requires extensive related services — high frequency, multiple service types, or particularly resource-intensive related services documented in the IEP. Related Services
4
Student is assigned a 1:1 provider-to-student ratio for at least 50% of the student's instructional day, as documented and required in the IEP for FAPE. 1:1 Staffing
5
Student is assigned a 1:1 provider-to-student ratio for at least 50% of the student's instructional day AND requires extensive related services (combines the highest staffing intensity with high related service needs). 1:1 Staffing + Related
Groups 1–3 are based on the extent and frequency of related services. Groups 4–5 are for students requiring 1:1 staffing for at least half of their instructional day. Like tiers, service group assignment must be grounded in explicit IEP documentation of required services for FAPE.
Speech therapy minutes always count toward minutes-in-sped-setting — regardless of whether speech-language therapy is functioning as SDI (the student's only instructional service) or as a related service (provided in addition to other SDI). The average minutes in a special education setting is determined by where the service occurs, not what it is. If speech therapy is delivered outside the general education classroom, those minutes count.

Speech as only SDI → automatic Tier 1. If speech-language therapy is the only SDI a student requires, the student is assigned Tier 1, regardless of factor ratings within the Communication Supports domain. In this case, speech therapy is not counted in the related services minutes for Service Group purposes — but any other related services the student receives would count.

Speech as a related service (student also receives other SDI) → speech therapy minutes do count toward Service Group 1–3 calculations.

Source: TEA Related Services in Special Education — Questions & Answers (May 2026). Download PDF ↗
🔬 Why This Matters for Diagnosticians
  • Your FIE report is the evidentiary foundation that ARD committees build IEPs from — and the IEP is what drives tier and service group determination.
  • Stronger FIE documentation → better IEP documentation → more accurate tier placement → appropriate funding for the services a student actually needs.
  • The TEA explicitly states: "It cannot be determined to be true unless there is evidence in the IEP." That evidence starts with your evaluation.
  • You are not responsible for tier determination — that is an ARD committee function. Your role is to provide thorough, evidence-based documentation of a student's needs.
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What to Ensure is Well-Documented in Your FIE
FIE Practice
The five domains map directly onto areas that a thorough FIE already addresses. The following documentation practices strengthen the ARD committee's ability to assign accurate tiers and service groups:
Curriculum & Instruction Domain
Clearly document the nature and extent of academic impact. Specify whether the student can access grade-level curriculum with accommodations only, or requires individually designed curriculum/instruction. Note whether standard interventions are sufficient or whether the student requires an approach unavailable in general education.
Behavior Domain
If behavior is an area of concern, document frequency, intensity, and impact in concrete behavioral terms. Note whether existing interventions have been effective and whether specialized behavioral support is required. BASC-3, Conners-4, and FBA data are directly relevant here.
Communication Domain
Document communication functioning clearly — whether the student uses verbal language functionally, requires AAC, or needs specialized communication support. CELF, CTOPP, TAPS-4, and OL narrative data inform this domain. Note any referral for SLP evaluation or existing SLP services.
Independent Functioning Domain
Adaptive behavior data (ABAS-3) is directly relevant. Document whether the student requires support for daily living, self-care, or functional independence. Vineland, ABAS scores, and structured observations inform this. Note whether a paraprofessional is currently supporting these areas.
Personal Care / Health Domain
Note any health conditions documented in medical records provided to the team. If the student requires nursing care, medication administration during the day, or physical health monitoring, ensure health-related impact is noted in the FIE. Health information from the OHI referral documentation is especially relevant.
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What Diagnosticians Are NOT Responsible For
Scope Clarity
The intensity of services framework is an ARD/IEP function, not a FIE function. As a diagnostician, you are not responsible for:
  • Determining or assigning a student's intensity tier
  • Determining which service groups apply
  • Using the TEA Special Education Funding Tool
  • Entering data into PEIMS/TSDS for the new funding system
  • Calculating minutes in special education settings
Your role: Write a thorough, evidence-based FIE that accurately characterizes the student's strengths and needs across domains. The ARD committee uses that foundation to build an IEP, and the IEP is what drives tiering. Good evaluations → defensible IEPs → accurate funding.
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When a Support Isn't Written Down, Calculation Tools Assume It Doesn't Exist
Documentation Risk
Whether a district uses the TEA's own Special Education Funding Tool or an IEP platform with built-in tier calculation, all of these systems work from the same source: what is explicitly documented in the IEP. When required data elements are absent or ambiguous, tools apply default assumptions — and those defaults almost always represent the lowest intensity level.
The following IEP elements are commonly defaulted to minimum intensity when not explicitly documented:
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Provider-to-Student Ratio & 1:1 Support
If the IEP doesn't explicitly state that a 1:1 ratio is required, tools default to no support required. A student who functionally receives 1:1 paraprofessional support all day but whose IEP doesn't document it as a required service won't receive Service Group 4 or 5 credit — regardless of what's happening in the classroom.
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Provider Credentials & Qualifications
When provider role or certification level can't be determined from IEP documentation, tools default to the minimum qualification level for Factor B scoring. If a student requires a highly qualified specialist and that requirement isn't documented, the tier calculation won't reflect it.
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Actual Instructional Minutes
IEPs that document services in periods rather than minutes require tools to estimate actual minutes using grade-span defaults (commonly 45 min/period for elementary, 50 for middle, 55 for high school). These estimates may not reflect what the student actually receives — and they can affect both tier calculations and PEIMS reporting for minutes in a special education setting.
The takeaway: A student's real-world service intensity and their IEP-documented service intensity must match. The IEP is the only thing tier calculation tools can read. If the ARD committee is providing a support but hasn't written it into the IEP as a required-for-FAPE service, that support is invisible to every calculation tool — including TEA's.
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IEP Sections That Feed Into Tier & Service Group Calculations
ARD Team Reference
Tier and service group determinations draw from nearly every section of the IEP. The following areas all contribute evidence to the calculation — and gaps in any of them can affect accuracy. This is universal regardless of what IEP platform a district uses.
📅 Schedule of Services
Primary source for tier calculations. Must include service type, minutes (not just periods), frequency, duration, and provider information.
🎯 Annual Goals & Objectives
Domain-specific goal areas (academic, behavior, communication, functional) drive which intensity domains are scored and at what level.
✅ Accommodations & Supports
Evidence for domain intensity factors. Chunking, visual supports, extended time, modified curriculum, task analysis, and classroom supports all inform scoring.
🔧 Assistive Technology
AAC devices, text-to-speech, communication devices, and other AT tools affect technology factor scoring across multiple domains.
🧠 BIP & FBA Documentation
Behavioral domain scoring draws from the BIP (intervention strategies, support type) and FBA (documented behavioral needs). Both must be current and specific.
🏥 Personal Care Services
Toileting, feeding, mobility supports, and health-related services must be documented — usually in a supplement — to factor into the Personal Care/Health domain.
🚌 Transportation & Parent Training
Special transportation and documented parent training services both affect Service Group 1 eligibility. Must appear in the IEP as required services.
🏫 Placement & Educational Setting
Instructional arrangement code, day placement, or residential placement can trigger tier override conditions (Tiers 7–8) and affect minutes-in-setting calculations.
🗣️ Related Services (OT, PT, Speech, Counseling)
The type and extent of related services drives Service Group 1–3 eligibility. Speech minutes and provider type also determine whether speech functions as SDI or a related service.
👤 Provider Information
Provider role and credentials must be identifiable from the IEP or provider records. Undocumented provider type defaults to minimum qualification for Factor B scoring.
Share this with your ARD team: A complete, specific IEP — one where every service has explicit minutes, every support is listed as required-for-FAPE, and provider roles are clear — is the foundation for accurate tier placement. Vague or incomplete IEPs create calculation gaps that tools can't fill with anything but minimums.
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Connection to Impact Statements (Garcia-Prats / TEDA Framework)
FIE Writing
The Garcia-Prats impact statement model — documenting how a disability affects access to the general curriculum and what supports help — aligns naturally with the domain structure of the new funding model. An impact statement that specifies what type of support is needed, how often, and by whom gives the ARD committee the exact evidence they need for each domain factor.
Consider: When writing impact statements and FIE recommendations, be explicit about whether standard classroom accommodations are sufficient or whether individually designed instruction (SDI) is required. This distinction is central to the funding model — and to FAPE determination.
Now — Spring 2026
Draft Commissioner Rules Published for Comment
TEA is posting proposed rules in the Texas Register for public comment. Draft rules define Tiers 2–7 and Service Groups 1–5. Rules subject to change before final adoption. Final adoption expected summer or early fall 2026.
May 7, 2026 onward
TEA Weekly Zoom Office Hours Begin
TEA OSPSS hosts office hours every Thursday at 9:00–9:30 AM and 4:00–4:30 PM to answer questions about the new funding system. Registration link on the TEA sped funding webpage.
August 14, 2026
Voluntary Early Data Submission to TEA
Districts that have completed tier/service group determinations may voluntarily submit data to TEA via secure upload. Helps TEA prepare LBB attendance projections. Note: Districts receiving the ESC 10 summer stipend grant must submit at least 10% of their total sped population by this date as a grant condition.
September 1, 2026
New Funding Model Takes Effect
TEC §48.102 (amended) and §48.1021 (new) become effective. SY 2026–27 begins under the transition framework — both old IA/setting codes AND new tiers/service groups must be reported. Existing IA codes carry forward automatically from the Summer PEIMS submission until an IEP revision triggers an update.
October 8, 2026 ⚠️
Tier & Service Group Data Due — PEIMS 1st Six-Weeks (≥50% of students)
By this date, districts must have reviewed IEPs for at least 50% of their students receiving special education services and submitted via PEIMS: (1) tier of intensity, (2) applicable service group(s), and (3) average minutes per instructional day in a special education setting. Data is entered with a begin date of the first day of the school year.
December 3, 2026 ⚠️
Tier & Service Group Data Due — PEIMS 2nd Six-Weeks (remaining students)
All remaining students not included in the 1st Six-Weeks submission must have tier of intensity, service group(s), and average minutes entered by this date. Begin dates for these students are still the first day of the school year, unless an ARD after the school year start resulted in IEP revisions affecting these data elements. By this submission, eligible days present are reported for both IA/setting codes and the new tier data for all students.
October 1, 2026
TEA Submits Attendance Projections to LBB
TEA must submit statewide attendance projections (including estimated tiers and service groups) to the Legislative Budget Board for the 2028–29 biennium.
December 1, 2026
TEA Submits Tier Weights & Service Group Amounts to LBB
TEA must submit estimated tier weights and service group dollar amounts to the LBB, based on first six-week PEIMS data. Final weights and amounts will not be determined until settle-up.
September 2027
Settle-Up: Final SY 2026–27 Funding Determined
Final tier weights and service group amounts determined at settle-up based on PEIMS Summer Submission data. All districts receive at least the old IA-based amount for the transition year. Additional funding distributed based on actual tier/service group data.
SY 2027–28
Old System Sunsets — Intensity Model Only
Instructional arrangement/setting codes are no longer collected or reported. Funding is based solely on the intensity of services model using final tier weights and service group amounts. No more transition year floor guarantee.
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TEA Funding Model Resource Hub
Main TEA landing page for all intensity of services funding resources. Updated as new materials are added. Start here.
spedsupport.tea.texas.gov ↗
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Special Education Funding Tool
Interactive online tool for ARD committees to analyze IEPs and determine tier of intensity and service groups. Export to Excel for PEIMS tracking.
TEA Funding Tool (ARD use) ↗
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Funding Framework Narrative (PDF)
Full PDF version of the funding model framework — complete domain descriptions, factor definitions, and scoring logic. Good companion to the online tool.
Download PDF ↗
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How-To Guide: Funding Tool
Step-by-step guide with screenshots for using the Special Education Funding Tool. Helpful for training campus staff and ARD facilitators.
Download PDF ↗
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TAA Letter — April 16, 2026
Official TEA To-the-Administrator-Addressed correspondence with full transition requirements, PEIMS reporting timelines, and training opportunities.
TEA.texas.gov ↗
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TAA Letter — May 28, 2026 Updated
Updates the April guidance: clarifies IA code carry-forward, sets the 50%/October 8 and remaining students/December 3 PEIMS thresholds, announces the ESC 10 summer stipend grant, and postpones the "educational environment" data element to SY 2027–28.
TEA.texas.gov ↗
Related Services Q&A — May 2026 New
TEA official Q&A clarifying how related services factor into the intensity model: speech therapy as SDI vs. related service, minutes-in-sped-setting calculations, service group eligibility, teletherapy, and more.
spedsupport.tea.texas.gov ↗
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Draft Commissioner Rules (Tiers 2–7)
Draft rules defining Tiers 2–7 and Service Groups. Subject to change before final adoption. Review to understand how composite scores map to tiers.
TEA Draft Rules (PDF) ↗
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TEA Sped Webinars & Newsletters
Monthly TEA sped webinars include a standing agenda item on the new funding model through at least September 2026. Recordings posted after each session.
Webinar Registration ↗
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TEA Sped General Questions
General special education questions to TEA OSPSS, including the new funding model transition.
sped@tea.texas.gov ↗
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TEA HB 2 Implementation Questions
Direct line for HB 2 Article 4 implementation questions — intensity tiers, service groups, PEIMS reporting.
hb2@tea.texas.gov ↗
📅 Weekly Office Hours — May 7, 2026 onward
9:00 – 9:30 AM
Every Thursday
4:00 – 4:30 PM
Every Thursday
Join Zoom Office Hours ↗
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Important: This page is an orientation and reference tool for diagnosticians — it is not a replacement for the official TEA Special Education Funding Tool or commissioner rules. Tier and service group determinations are ARD committee functions. Draft commissioner rules defining Tiers 2–7 and Service Groups are subject to change before final adoption. Always refer to current TEA guidance at spedsupport.tea.texas.gov for the most current information.