House Bill No. 7163 establishes a "special education emergency municipal assistance account," which will be a separate nonlapsing account funded by a transfer of forty million dollars from the General Fund. This transfer is contingent upon the Secretary of the Office of Policy and Management projecting a surplus of at least that amount in the cumulative monthly statements of revenue and expenditures for the fiscal year ending June 30, 2025. The account will also include any other funds that are legally permitted to be deposited.

The bill authorizes the Commissioner of Education to use the funds in this account to provide emergency grants to municipalities specifically for special education costs. Grants will be distributed to municipalities in April, following the issuance of the consensus revenue estimate, and must be used for costs incurred for special education and related services during the fiscal year ending June 30, 2025. The bill does not indicate any deletions from current law.