Modifies cost thresholds for reimbursement of extraordinary special education costs; requires State to bear full cost of nonpublic school transportation for certain school districts.

This New Jersey bill lowers the cost threshold for state reimbursement of special education expenses from $40,000 to $35,000 for students educated in regular public school settings. School districts will now receive 90% state funding for costs exceeding this new threshold (previously $40,000), while maintaining 75% reimbursement for costs above $40,000 in separate public schools and $55,000 for private school placements. It directly affects school districts serving students with disabilities requiring intensive services, adjusting how they receive state aid for high-cost special education programs. The bill is pending before the Assembly Education Committee as of January 2026.