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, contingent upon a projected surplus of at least that amount for the fiscal year ending June 30, 2025. This account will also include any other funds that are legally permitted to be deposited. The bill mandates that the Commissioner of Education utilize the funds in this account to provide emergency grants to municipalities specifically for special education costs.

The bill outlines that the distribution of these grants will occur in April, aligned with the revisions to the consensus revenue estimate, and will follow the guidelines set forth in subsections (d) and (e) of section 10-76g of the general statutes. Each municipality receiving a grant is required to use the funds exclusively for costs associated with special education and related services incurred during the specified fiscal year. The bill does not indicate any deletions from current law.