WA HB1267

Increases the funded special education enrollment limit from 16% to 16.5% in 2025-26, 17% in 2026-28, and eliminates the cap entirely beginning in 2028-29, allowing all eligible students to generate excess cost allocations

Exempts school districts with fewer than 2,500 students, districts that received safety net awards in the prior year, and districts where at least 10% of enrollment has a military parent from the funded enrollment limit

Requires the Office of the Superintendent of Public Instruction to monitor districts and charter schools for overidentification of special education students or overprovision of services beyond individualized education program requirements

Mandates corrective action plans for districts found to be overidentifying students, with findings reported to the state auditor

Imposes a 16% funding cap on districts that fail to implement corrective actions after audit, reducing their excess cost allocation proportionally if their enrollment percent exceeds 16%