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High Cost Child Claims

This guidance is intended to ensure that High-Cost Child (HCC) funding requests are complete, accurate, and supported by the required documentation. 

High-Cost Child (HCC) Eligibility 

The Arizona Department of Education Exceptional Student Services (ADE/ESS) has established that students with disabilities whose educational costs exceed three times the annual per-pupil average may qualify for High-Cost Child (HCC) funding. The current eligibility threshold is $39,339 annually, which equates to approximately $218.55 per instructional day based on 180-day school year, or $3,934.00 per month.

PEAs submitting claims based on the $218.55 daily cost threshold must provide attendance records covering the exact dates included in the claim period. 

New HCC Claim Requirements Effective October 2026 

All High-Cost Child claims will undergo a comprehensive review to verify that all required documentation has been submitted. Claims must include: 

  • A current Individualized Education Program (IEP). (Dates of the IEP must be valid within the claim dates, sometimes more than one IEP is needed) 
    • AzEDS data must match all disability categories listed on the most recent IEP. The Sped categories for primary and secondary should reflect what is in the student’s IEP along with the LRE. 
    • AzEDS data must pass all integrity rules 
  • Invoices documenting costs attributable to the High-Cost Child. Invoices must show date of service. Please include crosswalks, budget definitions, and other supporting documentation as needed. 
  • A narrative on PEA letterhead describing the financial impact of the student's excess costs on the PEA. 
  • HCC claim request date that does not exceed the submission date. 
  • A completed Claim Summary Template. 

Additional Eligibility Requirements 

To be eligible for HCC funding consideration, a PEA must: 

  • Be in compliance with Maintenance of Effort (MOE) requirements. 
  • Have no holds placed on their IDEA Part B funding. 
  • Have submitted at least one reimbursement request against its current-year IDEA Part B Consolidated application. 

If any required documentation is missing or any eligibility requirement is not met during the review process, the claim will be returned and will not be considered for the current approval round. The PEA must resolve all identified issues and resubmit the claim during the next submission round. 

Please ensure your PEA staff have been given the appropriate role to access the application: ESS High Cost: PEA User 

Public Education Agencies (PEA) will be limited to submitting only one claim per submission round.  Please note, if your PEA submits more than one claim per round, the additional claims will be returned without review by the HCC Specialist. 

Claims must be submitted before each deadline listed below for funding consideration. 

 

Submission Deadline Dates

HCC Round for Funding Approval

Submission Deadline 

1st

Friday, October 30, 2026

2nd 

Friday, January 29, 2027

3rd

Friday, March 26, 2027

4th

Friday, May 28, 2027

 

Reasons claims are returned 

  • Items being requested reimbursement for are not listed in students IEP 

  • Integrity errors in AzEDS

  • Invoices that fall outside of claim date, not readable, don’t align with claim summary template, or don’t calculate up to the HCC claim request amount 

  • Claim documents do not match student name listed on claim 

The ESS HCC Specialist may return claims for edits or corrections, and those edits must be submitted within five business days.  

 

Not allowable for reimbursement  

  • Special Education Teachers or Administrators salaries/benefits 

  • Office equipment or Office supplies 

  • Claim amount does not meet the Monthly average of $3,934.00  

Training Videos COMING SOON!

 

Resources

 

ESS HCC claims Program Specialist Contacts

Carol Bush                Program Specialist (602) 542-0709

Tanya Rodriguez      Program Specialist (602) 542-4610

Abby Sanchez,         Finance Director     (602) 542-2812

 

 

Revised on 10/22/2026