The bill establishes a new section in Chapter 16-7.1 of the General Laws titled "High-cost special education fund for excess costs associated with special education students." This fund is created to support municipalities in managing the financial burden of high-cost special education needs. It allows participating municipalities to voluntarily contribute to a pooled fund, which will be managed by the office of the general treasurer. The treasurer is responsible for investing the fund to maximize resources and generate income to help defray the excess costs associated with special education students.

Awards from the fund will be determined by the Department of Elementary and Secondary Education based on specific district needs and criteria developed by the department. Municipalities must have contributed to the fund in the previous fiscal year to be eligible for awards, with the initial contribution required to equal the municipality's high-cost special education expenses from the prior year. The bill emphasizes the need to provide financial support to municipalities facing extraordinary costs related to special education students and will take effect upon passage.