The 25-state group decided that read-aloud accommodations for text passages will be limited, for now, to students in middle and high school.
The funding will establish a center at Vanderbilt University in Nashville, Tenn. that will focus on instructional strategies in reading and math for students with persistent learning struggles.
The state cannot exclude students with disabilities who are 20 and 21 from public schools, according to a federal appeals court.
Though strong research in this area is lacking, studies do show interesting areas that policymakers can explore, according to a report from the federal What Works Clearinghouse.
Most states have already pledged to do away with the tests, which were aimed at students who could not meet grade-level standards despite good instruction.
Moving a student with disabilities to a more-restrictive setting to address bullying may violate special education law, a U.S. Department of Education guidance letter says.
Bennett and Sally Shaywitz, who have researched dyslexia for decades, are behind an effort to increase dyslexia awareness among African-Americans and Latinos.
Nursing groups opposed the move, which was approved by the state Supreme Court, saying that it was unauthorized practice of medicine.
Black students and students with disabilities are being placed in "drastically inferior" education programs at a disproportionate rate, says the Education Law Center.
The reports on state performance in special education will shift to a system that measures "things that really matter," says Melody Musgrove, the director of the office of special education programs.