What Comes Next with OSEP Reduction in Force
U.S. District Judge Susan Illston said she saw evidence suggesting the administration had “taken advantage of the lapse in government functioning, to assume that all bets are off, that the laws don’t apply to them anymore.” She also said the layoffs were not proper because they are politically motivated. The White House had already publicly stated that the layoffs are not over, and that they will likely lay off more than 10,000 employees.
The legal battle is likely not over, and we are all left wondering what it means for special education and what is next.
At the national level, coalitions of organizations representing educators, parents and other stakeholders are being formed to fight the OSEP reduction in force (RIFs). This is likely to grow as state and local organizations join the efforts.
TCASE’s national affiliate, the Council of Administrators of Special Education (CASE), has pointed out that the Supreme Court stated earlier in the year that the U.S. Department of Education (USDE) had discretion to lay off staff. “However, that ruling came with one major caveat – that the agency must still be able to appropriately implement the federal laws under its jurisdiction,” said CASE Executive Director Phyllis Wolfram. “CASE believes this latest round of firings flies in the face of that ruling and will keep OSEP from meeting its statutory and moral obligations.”
What Does OSEP Do?
OSEP has been a primary source of policy interpretation, clarifications, and technical assistance for how to implement IDEA at the federal level. Its near elimination means states and districts won’t have a clear federal reference point. It does not mean that there are any changes to existing requirements in IDEA and other federal guidance. All legal obligations are still in place.
Currently there is not a big concern about federal funding since it is forward funded and it would be some time before there could be an impact. Should the staff not be restored or if the operations are moved to a federal agency not experienced with these operations, delays in federal reviews, audits, or approvals could slow down reimbursements (IDEA funds), grant processing, or corrective action processes in the future. This possibility is uncertain at this point and not an imminent concern.
While the administration has said it plans to move OSEP operations to the Department of Health and Human Services (HHS), that office does not currently have experience in this area, and HHS had approximately 1,000 layoffs on Friday.
Communicating This Issue to Others
While we wait for more information, write or call your lawmakers in Washington with your thoughts on this issue. CASE has made an editable campaign that is open to the public and shareable.
Also, as a district leader you might hear from parents who worry about “who is watching the watchers” if the temporary halt on the layoffis is reversed. Clear, honest communication from district leaders is crucial to build confidence and trust.
Potential talking points:
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Emphasize district commitment: “We will continue to uphold IEPs, follow procedural safeguards, and maintain accountability locally. All legal obligations of districts are still in place.”
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Invite collaboration: “We will partner with families and advocacy groups to fill in the oversight gaps, to maintain trust and ensure that services continue.”
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Encourage parent and community concerns to be elevated to those in Washington by sharing the CASE action alert with anyone interested. If you prefer, you can use and share this link to our Legislative Action Center to write an email to your lawmakers using your home address.
Remember to only use your personal time and devices when using CASE’s action center or any other method of communicating with your lawmakers.
TCASE will continue to monitor this issue and work with CASE and parent advocacy groups to urge state education agencies, legislators, and other officials to protect students with disabilities. TCASE signed on to this letter with a broad coalition of disability, civil rights, and education organizations calling for reversal of the layoffs.
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Future SNAP and Medicaid Change
Although some argue the changes will increase efficiency and better target funds, others are concerned that the changes could mean higher local costs for special education, therapy, and health services in school districts. For states, reduced federal contributions could impact state budgets and require state and local funds to fill gaps. Further, reductions in SNAP eligibility may automatically lower the number of students eligible for free and reduced-price (FRPL) lunch, potentially affecting school funding formulas, such as those in Texas, that use poverty as a metric.
Work requirements for SNAP begin Nov. 1, 2025. Starting Oct. 1, 2026, students who are asylees, refugees, victims of domestic violence or human trafficking, or who have certain other immigration statuses, will not qualify for Medicaid coverage. The National Conference of State Legislatures has more detail on the impact of the changes for schools.
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Election Reminders and Resources
To help you navigate the ballot, here are some trusted, nonpartisan resources:
Mark your calendar with these key election dates:
Please ensure you're registered under the correct name and address and encourage your colleagues and community members to participate.
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Texas Sets Voucher Program Dates, Contractor
The Texas Comptroller’s Office has created a webpage to provide information about the program. The office also announced that Odyssey, a New York-based education technology company, has been awarded a $26 million, two-year contract to operate the program. Odyssey was given the option to renew for two more years.
The Comptroller’s office says Odyssey will be responsible for processing applications, running the lottery, managing digital wallets, and vetting schools and service providers.
Odyssey’s subcontracting plan lists three firms that will help market and implement TEFA: Steel Digital Studios of Austin, Vianovo, a strategic communications firm, and Outschool.org, a nonprofit that has conducted outreach for similar programs in other states. The documents show that the combined subcontract value is about $1.2 million.
Private schools and educational vendors may begin registering for participation Dec. 2, 2025, according to the contract. The state budget allows vendors to receive up to 5 percent of total program costs, or roughly $50 million in administrative funding. Odyssey’s performance standards include penalties if online systems fail or payments are delayed.
Interestingly, the timing could require families to commit to a private school before knowing whether their voucher application is approved, since private schools often open their enrollment earlier than this voucher timeline.
The Comptroller’s office said marketing to families statewide will begin Oct. 31, with Odyssey overseeing outreach and technical support. Final administrative rules for TEFA are expected by the end of October.
Sources: Contract documents obtained by Hearst Newspapers (Houston Chronicle, Oct. 14, 2025), Texas Comptroller’s Office, Texas Education Freedom Accounts program materials.