S-5038-119
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sponsored by Bill Cassidy (R-LA)
What it does
This bill would prohibit the Secretary of Education from transferring the functions of the Office of Special Education and Rehabilitative Services (OSERS) to the Department of Health and Human Services (HHS). It would block any contracts, agreements, or arrangements that move OSERS activities to HHS, and would suspend several existing laws — including the Economy Act — that would otherwise allow such transfers. Agreements already in place as of February 1, 2025, and their renewals, would be exempt from the prohibition.
Who benefits
The approximately 7.5 million students with disabilities who receive services under the Individuals with Disabilities Education Act (IDEA), whose programs would remain under a dedicated federal office. Parents and disability advocacy organizations who prefer OSERS remain a standalone, specialized unit within the Department of Education. State and local special education administrators who have established relationships and compliance processes with OSERS. Rehabilitative services recipients who rely on OSERS-administered vocational programs. Staff and employees of OSERS whose positions and organizational structure would be preserved.
Who is hurt
The executive branch — specifically the Secretary of Education and the administration — would lose flexibility to reorganize federal agencies and consolidate functions across departments. HHS, which may have been positioned to absorb OSERS functions, would be blocked from doing so. Taxpayers who might benefit from administrative consolidation or cost savings through reorganization would not see those potential efficiencies. Advocates for broader agency restructuring who argue that consolidating health and education services for people with disabilities could improve coordination.
Supporters argue
Supporters argue that OSERS administers over $14 billion annually in special education and rehabilitation funding under IDEA and the Rehabilitation Act, and that moving these functions to HHS would disrupt decades of specialized expertise, established state partnerships, and legal compliance frameworks. They contend that students with disabilities are among the most vulnerable populations served by the federal government, and that organizational continuity is essential to protecting their legally guaranteed rights under IDEA — rights that depend on a dedicated, accountable federal office with deep programmatic knowledge.
Opponents argue
Opponents argue that Congress should not use legislation to micromanage executive branch organizational decisions that are traditionally within the President's administrative authority, and that blocking all future transfers — regardless of circumstances — removes flexibility to improve service delivery. They contend that consolidating disability-related functions under HHS, which already administers Medicaid, Medicare, and other health programs serving people with disabilities, could reduce duplication and improve coordination, and that a blanket statutory prohibition prevents even beneficial reorganizations from being considered on their merits.