Disability rights advocates have dug up documents appearing to show Texas spent $41.6 million less on kids with disabilities in 2017 than the year before.
The two sides debated whether Texas' decreased spending on children with disabilities years ago violated federal law.
An early projection has Texas decreasing state funding to public education, and largely using local taxes to fill the gap.
Justin Porter, previously the education agency's executive director of special populations, will oversee how Texas school districts are serving kids with special needs.
In a lawsuit filed Wednesday, two teacher groups argue Texas Education Commissioner Mike Morath exceeded his authority and weakened protections for public school employees.
The Texas Education Agency will levy a $100,000 financial penalty against the New Jersey-based Educational Testing Service and seek a new vendor.
The Texas Education Agency on Monday released a second draft of its plan for overhauling the way it educates students with disabilities.
Ken Paxton said school districts cannot provide transportation to get students to polling places unless the trip serves an educational purpose.
The federal investigation found that the TEA effectively capped the statewide percentage of students who could receive special education services.
For the first time in Texas, charter schools will receive funding from the State to pay for leasing and maintaining buildings and facilities.