The state has outlined several protections that it believes would protect these students, who are not able to demonstrate what they know on grade-level tests.
Along with the report's release, U.S. Sen. Tom Harkin, D-Iowa, reintroduced a bill that would severely restrict or prohibit the use of restraints and seclusion in schools.
Many students from the Magnolia State are shifted into alternative diploma paths which may leave them unable to get a job or enroll in college, according to a recent special report.
New York is considering asking the Education Department for permission to test students at a lower grade level than their chronological age.
Pilot tests being developed by one of two common-core testing consortia will not allow the use of Braille or text-to-speech technology.
Joan McLaughlin, the new chief, has served in the position in an acting capacity since July 2013.
The state says this policy would allow students to be tested more accurately, but special education advocates worry such testing would lead to lowered standards.
Supporters in both groups are happy to see more money, but in the case of special education, swings in funding can have unintended consequences, one advocate says.
The lawmaker was first elected in 1974, and has had a major impact on education policy.
The FBI was one of several federal agencies involved in an investigation into a vocational program that was found to be improperly isolating students with intellectual disabilities.