Disability and Special Education Organizations Condemn Treasury’s Proposed Rules that Risk Undermining Disability Rights in Education

WASHINGTON, D.C. – October 1, 2026 – On September 30, the U.S. Department of the Treasury released a proposed rule for the new federal tax credit scholarship program passed into law in H.R. 1, the One Big Beautiful Bill Act. Throughout the legislative and rulemaking process, disability and special education organizations have repeatedly cautioned policymakers and Administration officials that the program will direct taxpayer dollars toward private schools that are not mandated to enroll or serve students with disabilities. 

The regulations fail to mandate participating private schools to provide students with disabilities and their families the rights and protections they receive in public schools. Private schools have a documented record of denying admission to students with disabilities or refusing to serve students who require specialized instruction, services, supports, or accommodations. For decades, federal laws—including the Individuals with Disabilities Education Act, Section 504 of the Rehabilitation Act, and the Americans with Disabilities Act—have provided critical protections for students with disabilities. It is deeply concerning that this program, funded through federal taxpayer dollars, will be implemented without ensuring those same protections for students with disabilities.

“It is especially disappointing that the Treasury Department did not address the concerns NCLD and other disability organizations raised about protections for students with disabilities,” says Dr. Jacqueline Rodriguez, CEO of the National Center for Learning Disabilities. “Further, there will be a gaping hole of transparency and oversight that will allow discrimination to go unseen. We urge governors to opt out of this program.” 

“The federal government’s omission of protections for students with disabilities and their families under this program could have profound civil rights and educational consequences,” shares Dr. Eric Rossen, Executive Director of the National Association of School Psychologists. “NASP opposes educational funding systems that funnel public money to schools that lack public accountability, do not uphold federal civil rights laws, or enable discriminatory practices. Under the proposed interim rule this program checks all of those boxes, and we urge states to opt out until the program equitably serves all students.” 

“The Treasury Department had an opportunity to ensure this new federal program affords all students, including students with disabilities, equal rights and protections. Instead, these draft regulations fail to safeguard those rights and allow federal resources to support schools that are not held to the same standards of access and accountability as public schools,” said Phyllis Wolfram, Executive Director of the Council of Administrators of Special Education. “Students with disabilities must retain their essential rights and protections when federal resources support their education.”

“A scholarship means very little if the school can refuse to admit your child or won’t provide the supports they need to learn. That’s the reality many families of students with disabilities, especially students with IDD and more complex support needs, could face under this rule. Parents could be told they have more choices while discovering that those choices disappear the moment their child needs specialized instruction or services. When federal dollars are helping pay for a child’s education, families shouldn’t have to wonder whether their child’s disability will shut the door” said Robyn Linscott, Director of Education and Family Policy at The Arc of the United States.

“CEC has repeatedly raised concerns about directing public funds to private schools without corresponding accountability measures. Unfortunately, these proposed regulations fail to provide basic protections to ensure students receive equitable access to services and supports, putting students with disabilities at risk of being denied the protections and services they are otherwise entitled to.” said Chad Rummel, Chief Executive Officer of the Council for Exceptional Children.