The Alabama State Department of Education (ALSDE), Special Education Services Section is accepting Fiscal Year 2027 applications for the Alabama High Cost Fund (ALHCF), a state administered IDEA Part B funding vehicle that helps Alabama local education agencies cover unusually high costs of direct special education and related services for individual children and youth with disabilities.
Eligibility: An applicant must be an Alabama local education agency with a qualifying high needs student enrolled in the LEA and receiving special education and related services from that LEA. The student must be age 3 through 21, have a current IEP and eligibility report, and have documented FY 2027 costs exceeding $42,459, which ALSDE identifies as three times the FY 2025 average per pupil expenditure. The LEA must also meet the listed IDEA compliance and fund management conditions.
Next published deadline: November 6, 2026 for electronic submission. The controlling ALSDE memorandum does not publish a closing clock time or time zone. ALSDE states that additional submission dates may be added if funds remain.
Funding: ALSDE does not publish a single per applicant maximum award. The application calculates allowable ALHCF support from the student’s total qualifying cost after subtracting $42,459 and applicable third party funding such as health insurance. Multiple applications may be submitted for different qualifying high cost students, but applications for groups of students are not accepted.
Eligible costs and documentation: Only costs identified in the student’s IEP and associated with direct special education and related services are considered. The official cost worksheet includes special education services, child specific materials and supplies, related services such as transportation, occupational therapy, physical therapy, and nursing services, plus other costs such as consultations, training, and independent evaluations. Applications must include required LEA signatures, a proposed budget, detailed financial need and catastrophic impact information, and the student specific program and service documentation required by the official application.
Match or cost share: The controlling materials do not state a conventional mandatory match percentage. The award formula requires the LEA to absorb the threshold amount and account for applicable third party funds before calculating allowable ALHCF support.
Submission: Applications are submitted electronically through the official ALSDE application link. Approved costs may not be incurred before submission and approval. FY 2027 funds are available from October 1, 2026 through September 30, 2027 and are not automatically renewed.
Questions may be directed to the ALSDE Special Education Services Section at sesgrants@alsde.edu or 334-694-4782.
Atlas analysis: Atlas Opportunity Score 86/100. N9+ Fit Score 55/100. This is a strong school health and high needs disability funding vehicle because it explicitly supports IEP required related services including nursing and consultations. The controlling guidance does not expressly identify remote examination devices or general medical technology as allowable costs. Any role for the Nonagon N9+ device and platform would therefore require a real student specific IEP need, cost treatment that ALSDE accepts, and careful coordination with third party coverage. Generic outreach should not introduce N9+.
Official source: ALSDE FY26-2055, Fiscal Year 2027 Special Education Services Application for Alabama High Cost Fund.