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Bill

S 5038

Special Education Administration Protection Act

119th Congress Introduced by Bill Cassidy

Prohibits transferring or outsourcing OSERS duties to HHS, keeping key special education functions within the Department of Education and blocking new cross-agency arrangements.

Introduced in Senate
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Bill Summary · S 5038

Summary of Bill: S.5038 (119th Congress) – Special Education Administration Protection Act

Purpose

  • The bill seeks to prohibit the transfer or outsourcing of the functions of the Department of Education’s Office of Special Education and Rehabilitative Services (OSERS) to the Department of Health and Human Services (HHS) or through any agreement with HHS.
  • Its overarching aim is to protect the administrative functions and responsibilities of OSERS from being moved to or contracted out to HHS.

Key Provisions and Changes

  • Section 2(a) – Prohibition on transfers and outsourcing
    • The Secretary of Education is barred from:
    • Procuring services from, contracting with, or carrying out an agreement with HHS relating to OSERS functions authorized under section 207 of the Department of Education Organization Act (20 U.S.C. 3417).
    • Obtaining goods or services from, transferring activities to, or entering into any similar arrangement with HHS for those OSERS functions.
  • Section 2(b) – Non-applicability of other laws (with caveats)
    • Except as otherwise noted, certain general appropriation and government-wide procurement laws would not apply to the transfer/contracting restrictions described in Section 2(a). Specifically:
    • General Education Provisions Act section 430(a) (20 U.S.C. 1231(a))
    • Department of Education Organization Act sections 415 and 419 (20 U.S.C. 3475, 3479)
    • Economy Act (31 U.S.C. 1535)
  • Section 2(c) – Exceptions
    • The prohibitions do not apply to: 1) Any procurement, contract, agreement (including arrangements for obtaining goods or services), transfer, or similar arrangement between the Department of Education and the Department of Health and Human Services that was in effect on February 1, 2025. 2) The renewal of such an existing procurement, contract, agreement, transfer, or arrangement described in the subsection.

Applicability and Timeline

  • The prohibition applies to new transfers or agreements after the enactment, with a one-time carve-out for pre-existing arrangements with HHS that were active as of February 1, 2025, and their renewals.
  • The bill’s effective scope hinges on maintaining OSERS’ functions within the Department of Education and preventing outsourcing/transfer to HHS going forward.

Potential Impact

  • Administrative Autonomy: Aims to preserve OSERS' leadership, governance, and administrative functions within the Department of Education, reducing the risk of operational changes due to inter-agency transfers.
  • Budget and Procurement: Would constrain cross-agency procurement and contracting processes related to OSERS functions, potentially limiting cost-sharing or efficiency initiatives that involve HHS.
  • Stakeholders Affected:
    • Primary: Office of Special Education and Rehabilitative Services (OSERS), Department of Education leadership, and related program offices.
    • Secondary: Departments that interact with OSERS, including potential contractors and service providers, and HHS if existing arrangements exist.

Procedural Details

  • Introduction and Referral: Introduced in the Senate by Senator Cassidy on July 21, 2026, and referred to the Senate Committee on Health, Education, Labor, and Pensions.
  • Status: Read twice and referred to the committee as of the latest action; no final passage information provided in the available text.

Notable Considerations

  • The bill does not abolish or remove OSERS; it restricts transferring its functions to HHS.
  • The exception for arrangements in effect as of February 1, 2025, means existing coordination mechanisms could continue if they predate the bill, with renewal options still possible under those terms.

If you’d like, I can provide a side-by-side comparison with current law (as of 2024/2025) to highlight exact legal divergences and potential edge cases.

Compiled from official sources — confirm details with the bill’s official record.

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