With various budget decisions happening at the federal and state level that affect families raising kids with disabilities in California, we wanted to share recent updates with the Undivided community. We’ve received requests from families to keep them informed, and you can always follow us on social media (@undividedapp) where we post updates when we have information that can affect families.
Update on SDP budgets over $90,000
Some members expressed concern about reports that the Department of Developmental Services (DDS) would be “auditing” Self-Determination Program (SDP) budgets over $90,000. This may be a misunderstanding; according to DDS Community Outreach on August 28, 2025, DDS is reviewing budgets above $90,000 only to develop new statewide guidelines for consistency across Regional Centers and to ensure compliance with federal and state laws. DDS reportedly will not be auditing or approving individual participant budgets. Reporting information to the Department should not delay Regional Center approval of individual budgets.
Federal Department of Education ends funding for some IDEA Part D grants
Several federally funded programs serving students with disabilities are reporting the loss of their IDEA Part D grants following recent decisions by the U.S. Department of Education (ED).
Although the U.S. Senate’s 2025–26 budget bill for education, labor, and health and human services rejected many of the administration’s proposed cuts — including proposals to devolve IDEA Part D funding to block grants given to states — the Department of Education retains discretion over which grantees receive Part D funds. These grants support professional development, training, and specialized resources for educators and families nationwide.
In recent weeks, multiple grantees have received letters notifying them that their funding has been eliminated. According to advocates, the Department of Education has justified reallocating funds on the basis that many proposals included diversity, equity, and inclusion (DEI) priorities. According to a recent EdSource article, several programs in California will have their funding redirected towards efforts the California Department of Education says “reflect this administration’s priorities.”
- Specifically, efforts have been targeted that include the language or intent of “diversity, equity, and/or inclusion.”
- Some examples of direct funding that have been cut in California include $2.3 million in SpEd teacher trainings and vocational and rehab programs at various universities, such as braille training.
According to EdWeek, the ED terminated “a small fraction of grantees” from five separate IDEA Part D funding streams:
- Four out of 49 state Deafblind technical assistance centers across eight states serving 1,000 students with visual and hearing impairments ($1 million total).
- Three community parent resource centers, leaving 23 spread across the nation. These are parent-led nonprofits that help parents of particular populations of students with disabilities understand their rights ($360,000 total). We know that Community Inclusion and Development Alliance (New York), which primarily serves Korean Americans, lost a $120,000 grant for this center.
- Four out of at least 24 active State Personnel Development Grants, which are used to train education specialists to provide special education ($6 million total).
- At least four Special Education Teacher Preparation Grants in California that train special education teachers for underserved communities (approximately $3.5 million). The ED claimed claimed the programs are using taxpayer funds to train teachers and education agencies on divisive ideologies.
- Thirteen out of more than 100 active grants for university programs that provide doctoral research and professional training for education specialists ($3.8 million total).
- A technical assistance center, one out of more than 36 nationally, that helps states collect data on disproportionate identification of students with disabilities ($3.5 million).
The ED told Congress that hundreds more Part D grants are set to receive continuation awards for the fiscal year that starts October 1.
Stephanie Smith Lee, currently Co-Director of Advocacy & Policy at National Down Syndrome Congress, and a former director of the Office of Special Education Programs, told Disability Scoop that there is “simply no precedent” for any administration canceling so many IDEA Part D grants all at once in the middle of a grant cycle, leaving the programs with only days to adapt.
What this means for California families
For California, IDEA Part D grants are critical because they:
- Fund regional expertise in areas like Deafblind education, early literacy, and assistive technology
- Provide professional development for teachers and specialists, ensuring students with disabilities have access to effective supports. This impacts California heavily with the cutting of four programs, at a time of dire teacher shortages.
- Support parent training and resources that help families navigate special education systems
If national grantees lose funding, California schools and families may feel the impact through reduced training opportunities, fewer specialized resources, and limited access to expertise in low-incidence disabilities.
Families and advocates are watching closely to see how reallocated funds will be distributed and whether California’s programs will be affected in the coming year.
California DOR limits paid internships in TPP Program
Families across California are reporting changes to the Department of Rehabilitation’s (DOR) Transition Partnership Program (TPP) after school districts received letters outlining new limits on paid work experiences. The policy took effect August 21, 2025.
In the letter, DOR Deputy Director Jessica Grove explained that rising demand, coupled with flat federal and state funding levels over the past three budget cycles, has forced the agency to scale back services. “Our priority remains ensuring that individuals with disabilities have pathways to meaningful employment,” Grove wrote.
What the changes mean
- Students will be limited to one paid work experience of up to 100 hours through a community rehabilitation partner and up to 120 hours through a school district cooperative program. DOR is encouraging schools and program partners to expand use of unpaid options such as job shadowing, workplace tours, and volunteer experiences.
- This will not affect students on Workability I, which is a different grant funded by the California Department of Education. This only affects students whose schools have cooperative partnerships with the DOR for paid work experience such as TPP.
- No new paid work experiences will be authorized for adults in the vocational rehabilitation program. Current placements included in a signed Individualized Plan for Employment (IPE) may continue up to 100 hours, but no additional paid placements will be approved. Adults may still access volunteer or unpaid internships.
Why the shift?
While state and federal appropriations for DOR have not been cut, outreach efforts have significantly expanded participation. Current funding levels, unchanged for several years, are not sufficient to sustain prior levels of paid internship placements. Officials say the new limits are designed to stretch resources so that more eligible students can participate.
Cynthia Butler, Public Information Officer at the DOR, told Undivided that fiscal uncertainty at the federal level affected the decision to impose new limits on TPP internships. She says, “The Department did not make this decision lightly, as we understand the real-world impacts of this reduction on current and future paid work experience program participants. Due to federal budget issues, the resources needed to support the level and duration of paid work experience the DOR previously provided are just not there.”
Impact on families
Some students have reportedly had internships shortened or ended early — effectively losing their jobs. The DOR clarified that the changes to the paid internship program did not mandate student paid internships end early or be shortened before the program hours were reached. If a decision was made and attributed to the DOR, that was a misinterpretation of the August 21st notification that was distributed by the Department. Butler says that if families believe that this occurred, they are encouraged to reach out to their local DOR office and request the contact information for the district administrator.
Advocates are concerned about the disruption this causes for young people with disabilities who rely on paid work experience as a critical step toward long-term employment.
Butler says, “The DOR, along with its partners, is committed to providing a pathway to employment for our participants. Paid work experience is just one avenue toward reaching an employment goal. We will continue to provide opportunities where adults and students can receive the tools and skills they need to succeed and become job ready including through vocational training, education, job readiness skills training, and other student and vocational rehabilitation services.”
We know that uncertainty can be stressful, so our families and advocates are watching closely to see how California’s programs will be affected. If you have questions, please feel free to reach out!
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