The U.S. Department of Education has settled a dispute with South Carolina education officials over spending cuts to special education services.
The dispute began when the Education Department threatened to withhold more than $112 million from the state after its legislature cut money it set aside for students with disabilities between 2010 and 2013.
South Carolina later sued. The department returned some of that money in 2011 after the state managed to scrape together funds to pay for special education services. But at least $51 million in federal funds were withheld. Late last month, the department agreed to release that money. In exchange, the state will pay an extra $60 million to districts, money it withheld from them during the recession.
