---
title: Legislative Leaders Announce Additional $40 Million for Excess Cost Grant in FY 2025
description: While the additional funding for the Excess Cost grant offers immediate, much-needed support to communities, we know much more work remains.
---

[News & Press | School + State Finance Project ](https://schoolstatefinance.org/news-and-press)

# [Legislative Leaders Announce Additional $40 Million for Excess Cost Grant in FY 2025](https://schoolstatefinance.org/news-and-press/statement-on-legislatures-plan-to-invest-additional-40-million-in-excess-cost-grant)

 Written by [Lisa Hammersley, School + State Finance Project](https://schoolstatefinance.org/news-and-press/author/lisa-hammersley-school-state-finance-project) | Feb 19, 2025 7:00:00 PM

This morning legislative leaders announced they will convene on Monday, February 24 to vote on providing an additional $40 million in funding in the current fiscal year (FY 2025) for the special education [Excess Cost grant](https://schoolstatefinance.org/hubfs/Reports/Excess%20Cost%20Grant%20FAQs.pdf). 

**Background**  
The Excess Cost grant provides partial reimbursement to districts for the costs associated with educating students who have extraordinary special education needs. 

Approximately $181.1 million is currently appropriated to the Excess Cost grant for FY 2025. This is an estimated $75.6 million less than what is needed to fund the grant at its statutory reimbursement tiers, and an estimated $108.2 million less than what is needed to reimburse all districts for 100% of their Excess Costs.

**Estimated Impact of Additional $40 Million**  
The School and State Finance Project has conducted an analysis that provides an **estimate** of what each district would receive from the Excess Cost grant for FY 2025 with the additional $40 million in funding. To view each district's estimated grant amount, [please click here](https://schoolstatefinance.org/hubfs/Assets/Estimated%20District%20Excess%20Cost%20Grants%20with%20Additional%2040M.pdf).

**  
School + State Finance Project Response  
**The School and State Finance Project released the following statement from Executive Director Lisa Hammersley in response to the legislature's plan to invest an additional $40 million into the Excess Cost grant for FY 2025.

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*We applaud legislative leadership for taking action now to help address the urgent special education funding needs of school districts and municipalities across the state.*

*Today’s announcement of an additional $40 million for the Excess Cost grant in fiscal year 2025 is a significant step forward and demonstrates the legislature’s continued commitment to Connecticut’s students. With the $40 million investment, the State would be approximately $35.6 million short of fully funding the Excess Cost grant at its statutory reimbursement tiers.*

*While the additional funding for the Excess Cost grant offers immediate, much-needed support to communities, we know much more work remains to ensure ALL students —including those with special education needs — receive the funding, services, and high-quality education they deserve.*

*We look forward to continuing this work with the legislature this session, and urge policymakers as they craft a biennial budget to build on this step forward by adding a weight for special education to the Education Cost Sharing (ECS) formula and fully implementing a student-centered funding system.*

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[View full post](https://schoolstatefinance.org/news-and-press/statement-on-legislatures-plan-to-invest-additional-40-million-in-excess-cost-grant)

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