The Department of Education made a technical change to the state maintenance of effort (MOE) rule under the Individuals with Disabilities Education Act (IDEA). The change was included in the continuing resolution (CR), the spending bill for the rest of the 2013 fiscal year that Congress passed last month.
Under an MOE, states cannot cut their own education spending below whatever amount they spent the previous year and still receive their full allotment of federal dollars under IDEA, unless they get special permission from the Department. A provision in the recent spending legislation clarified that while states that are out of compliance with the law will have their IDEA funding reduced, the cut will not be permanent. Instead, the reduction would just be for the year (or years) that the state was out of compliance and did not obtain a waiver. Once the problem had been fixed, the state could go back to its regular spending levels. Any surplus funds resulting from reductions in funding due to MOE violations would be divided among states that follow the rule as a one-time bonus.