On December 27, 2024, the U.S. Department of Education (USDE) withdrew a proposed federal rule that supporters said would have made it easier for schools to be reimbursed for school-based Medicaid services. It was seen as a way to reduce schools’ paperwork burdens and increase reimbursements for the rendering of applicable in-school Medicaid services.

The proposed rule, first issued in May 2023, recommended a rare amendment under the Individuals with Disabilities Education Act, which guarantees that students with disabilities receive supports for learning and related services. The rule also sought to eliminate an IDEA provision that requires one-time parental consent before schools file first-time invoices for school-based specialized services for children eligible for public benefits under Medicaid, the Children’s Health Insurance Program, or other public insurance and benefits programs. No other parental consent procedure under IDEA would have been affected. 

In addition, USDE leadership will change with the January 20th inauguration and it is unknown what the tenor would be for making such a rule change.

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