End of June Policy Updates

CAPSES Advocacy Update

Keeping California's nonpublic schools and agencies informed, connected, and represented.

One of CAPSES' core responsibilities is monitoring the rapidly changing policy landscape affecting California's certified Nonpublic Schools (NPS) and Nonpublic Agencies (NPA). We believe it is important to keep our members informed about the issues shaping our field.

This update highlights where CAPSES has been engaged over the past several weeks, the policy developments we're watching most closely, and, most importantly, what they may mean for our members and the students we collectively serve.

Federal Watch

The federal landscape for special education continues to evolve as the U.S. Department of Education moves forward with plans to shift key responsibilities to other federal agencies as part of the Administration's broader effort to reorganize the Department.

Most notably, the Department has announced that many functions currently carried out by the Office of Special Education and Rehabilitative Services (OSERS) will transition to the U.S. Department of Health and Human Services (HHS) through an interagency agreement. At the same time, many responsibilities of the Office for Civil Rights (OCR), including investigations of disability discrimination in schools, are expected to transition to the U.S. Department of Justice (DOJ).

These proposed changes have generated significant discussion nationwide. More than 600 disability, civil rights, and education organizations have expressed concern that separating IDEA oversight and civil rights enforcement from the Department of Education could create confusion, weaken coordination across education programs, and complicate the process for families seeking support or filing complaints. Several members of Congress have also raised questions, and the Senate Health, Education, Labor, and Pensions (HELP) Committee is expected to consider legislation that would block the transfer of special education responsibilities to HHS.

The Administration has emphasized that these changes are administrative in nature and has stated that IDEA remains federal law, funding will continue, and students' legal rights are unchanged. Most in the disability community remain concerned. 

What this means for CAPSES members

At this point, there are no immediate changes to IDEA funding or students' rights to a Free Appropriate Public Education (FAPE). However, these organizational changes could influence how technical assistance, compliance monitoring, dispute resolution, and federal guidance are delivered in the future.

CAPSES will continue monitoring these developments closely and will keep members informed as Congress, the U.S. Department of Education, HHS, and DOJ provide additional guidance regarding implementation and oversight.

State Leadership & Budget

Governor Newsom and legislative leaders recently reached agreement on California's 2026–27 State Budget, maintaining a balanced budget while continuing investments in education, healthcare, childcare, and other essential services.

One of the most significant education provisions is a proposal to modernize the governance structure of the California Department of Education.

Beginning January 1, 2027, operational management of the California Department of Education would shift from the elected Superintendent of Public Instruction to a Governor-appointed Education Commissioner, subject to Senate confirmation. The Superintendent would remain a constitutional officer while assuming a more policy-focused role, including serving on the State Board of Education and the California Community Colleges Board of Governors.

The proposal also expands the State Board of Education and represents one of the most significant structural changes to California education governance in decades.

The budget agreement also preserves major investments in TK–12 education, special education, universal school meals, preschool, and workforce development. CAPSES will continue reviewing budget trailer bills as implementation details are finalized.

What this means for CAPSES members

Although these governance changes will not immediately affect daily operations, they might influence how education policy is developed and implemented beginning in 2027. It could have an impact on direction and leadership inside the CDE.

Legislative Watch

The Legislature is approaching its final policy committee deadlines before Summer Recess, after which lawmakers will return in August to complete the second half of the legislative session.

Among the bills CAPSES continues to monitor are:

• AB 2490 (Valencia), which would extend the amount of time career substitute permit holders may remain in one classroom while adding new training, mentoring, and professional development requirements. The bill would allow certain Emergency Career Substitute Teaching Permit holders to serve up to 70 cumulative days in a single classroom, including special education classrooms. This is an increase from the earlier 60-day proposal.

• SB 1083 (Pérez) and AB 1381 (Muratsuchi), continue efforts to strengthen California's response to egregious employee misconduct while balancing due process protections. Both authors have indicated additional amendments are expected. These bills build on the proposals of last year’s SB 848.

• CSBA's "SOS for Student Achievement" legislative package: AB 2225 (Patel), AB 2202 (Muratsuchi), AB 2514 (Ransom), and AB 2149 (Garcia) would establish a statewide strategy for closing achievement gaps through coordinated planning, a new advisory commission, public accountability dashboards, and annual reviews of whether state policies and education funding are aligned with improving student outcomes. While these measures primarily focus on state-level governance and accountability, they could influence future education priorities, funding decisions, and statewide support systems.

What this means for CAPSES members

Most major education bills have now advanced through policy committees and will continue moving after Summer Recess. CAPSES remains actively engaged on legislation affecting workforce development, student safety, special education, accountability, and equitable access to services.

Advocacy Spotlight: SB 685

One bill that has quickly become a significant priority for CAPSES is SB 685 (Cortese).

The bill seeks to strengthen student safety and accountability across California schools. While CAPSES strongly supports those goals, several provisions, as currently drafted, could have meaningful implications for certified Nonpublic Schools and Agencies, including employee clearance processes, certification requirements, reporting obligations, and administrative operations.

CAPSES has already begun working closely with Capitol Advisors, legislative committee staff, and Senator Cortese's office to provide technical feedback that reflects the unique role, existing oversight, and operational realities of California's certified NPSs and NPAs.

Our objective is to ensure the legislation strengthens student protections while avoiding unnecessary duplication, unintended administrative burdens, or conflicts with existing state and federal requirements.

What this means for CAPSES members

SB 685 continues to evolve, and we anticipate additional amendments throughout the legislative process. We will remain actively engaged, keep members informed as the bill develops, and seek member input whenever appropriate.

Insurance & Risk Management

CAPSES continues participating in the statewide Insurance Crisis Coalition, working alongside organizations representing child-serving providers to advance both state and federal solutions to the growing liability insurance crisis.

Although many of the coalition's immediate efforts have focused on foster family agencies and residential providers, CAPSES has ensured that the concerns facing Nonpublic Schools and Agencies remain part of these statewide discussions.

At the federal level, coalition partners continue educating Congress and federal agencies about the growing insurance challenges affecting organizations serving children and youth. An encouraging development came when the House Appropriations Committee directed the U.S. Department of Health and Human Services to study the availability and affordability of liability insurance and recommend both federal and state policy solutions. That report is expected in early 2027.

The coalition is also engaging with the National Association of Insurance Commissioners, which recently established a working group dedicated to addressing insurance availability for child-serving organizations.

At the state level, advocacy efforts continue despite additional bridge funding not being included in this year's budget. Coalition partners are now focused on long-term legislative and regulatory solutions that improve insurance market stability while protecting organizations serving vulnerable children.

One important trend discussed during the coalition meeting is the increasing emphasis insurers are placing on documented abuse prevention and organizational risk management. Carriers are moving beyond written policies and increasingly expect organizations to demonstrate ongoing staff training, supervision, prevention systems, and operational accountability as part of underwriting decisions.

What this means for CAPSES members

While many current policy discussions focus on child welfare providers, the broader insurance market (and insurers' evolving expectations around prevention and organizational practices) are directly relevant to NPSs and NPAs. CAPSES will continue ensuring our sector has a voice in these conversations while advocating for practical, sustainable solutions.

Looking Ahead

The second half of the legislative session promises to be an active one.

Over the coming months, CAPSES will continue:

• Monitoring legislation affecting our sector.

• Reviewing implementation of California's budget and education governance reforms.

• Engaging with policymakers on SB 685 and other priority legislation.

• Representing NPSs and NPAs within statewide insurance and workforce coalitions.

• Advocating for policies that improve access, strengthen the workforce, reduce unnecessary administrative burden, and support students with disabilities.

Just as importantly, we will continue building relationships with legislators, state agencies, coalition partners, and education leaders to ensure the perspectives of California's certified Nonpublic Schools and Agencies remain part of every important policy conversation.

Thank you for your continued partnership and engagement. If your organization is experiencing challenges related to any of these issues, or if there are emerging topics you believe CAPSES should be monitoring, we encourage you to reach out. Your experiences strengthen our advocacy and help policymakers better understand the realities facing the students and providers we collectively serve.

Acknowledgment

This update reflects CAPSES' ongoing monitoring and analysis of federal and state policy developments affecting our members. We are grateful for the work of our advocacy partners, including Capitol Advisors Group, as well as trusted policy and news organizations such as EdSource, CalMatters, and the California Alliance of Child and Family Services, whose reporting, legislative analysis, coalition leadership, and policy expertise help inform many of the updates shared here. CAPSES' role is to synthesize these developments, advocate on behalf of California's certified Nonpublic Schools and Agencies, and provide analysis specific to our sector.