Virginia school districts return nearly $30 million in misused special education funds

Loudoun County had to repay nearly $29 million, while Essex and Northumberland had to pay back $450,000 and $243,607 respectively.

Published: October 6, 2025 4:41pm

Three Virginia school districts have returned nearly $30 million in misused special education funds as of Monday, after a Virginia Department of Education investigation in May, and one division is still disputing allegations it misused the funds.

The Virginia Department of Education found in May that Essex County, Loudoun County and Northumberland County all violated the Individuals with Disabilities Education Act, which mandates that school divisions meet a Maintenance of Effort obligation that requires that local and state spending on children with disabilities not dip below the level of the preceding fiscal year.

Loudoun County had to repay nearly $29 million, while Essex and Northumberland had to pay back $450,000 and $243,607 respectively.

Essex is disputing its charge, arguing the shortfall was a mistake made by a former employee, though it did pay back the funds, according to the Virginia Mercury

“Essex County Public Schools has paid its Maintenance of Effort penalty in protest, and is very hopeful that the Virginia Department of Education will either grant us an allowable exception or support our request for review of the penalty to the U.S. Department of Education,” Scott Croxton, chairman of the Essex County School Board, told the outlet. 

Loudoun County is paying the money back after a review found some of its money for special education was mistakenly spent on English Learner programs instead. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.

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