The bill amends Chapter 16-7.1 of the General Laws, known as "The Paul W. Crowley Rhode Island Student Investment Initiative," by introducing a new section that establishes a high-cost special education fund. This fund is designed to assist municipalities in managing the excess costs associated with providing special education services to students with high-cost needs. The fund will be managed by the office of the general treasurer, which will invest the pooled contributions from participating municipalities to generate income that can help offset these expenses. Municipalities can voluntarily contribute to the fund and must have made a contribution in the fiscal year prior to applying for awards from the fund.

The bill outlines the criteria for determining awards from the fund, which will be based on the specific needs of the districts as assessed by the Department of Elementary and Secondary Education. The criteria will also consider the total contributions made by the municipality up to the date of the award request. The initial contribution required from a municipality will equal its high-cost special education expenses from the previous fiscal year. The act is set to take effect upon passage, aiming to provide necessary financial support for municipalities facing extraordinary costs related to special education.