🛝 Fed Targets Special Ed Choice, Reading Reforms Stall, AI Bias Exposed

Welcome to Playground Post, a bi-weekly newsletter that keeps education innovators ahead of what's next.

This week's reality check: Federal government pushes school choice into special education, schools are still struggling to actually implement the science of reading and AI teacher tools are saving time but creating new risks.

💎 Data Gem

1 in 8 teaching positions in the U.S. are unfilled or staffed by under‑qualified teachers, according to the Learning Policy Institute's July 2025 fact sheet. That means at least 411,549 classrooms nationwide lack properly certified educators.

Education Department Eyes Special Education in School Choice Expansion

The federal government is working with states and districts to expand school choice models specifically for students with disabilities.

Diana Diaz-Harrison, deputy assistant secretary of the Office of Special Education and Rehabilitative Services, told 1,200 conference attendees that families are "seeking choices, flexibility, innovation and specialization."

Here's what's interesting: This isn't just about more options. 

It's about maintaining IDEA compliance while embracing what Diaz-Harrison calls "21st century tools."

The challenge? 

Private schools don't have to comply with IDEA, but families still want specialized services.

As choice expands, there's growing demand for solutions that help both traditional and alternative schools serve students with disabilities effectively.

Think specialized learning platforms, compliance management tools, and transition support services.

Companies focused on special education technology and services should pay attention. The federal push for school choice combined with IDEA requirements creates a real market need for tools that work across different school settings.

Schools Struggle with "Balanced Literacy Rehab" Despite New Curricula

Districts are buying science of reading curricula, but implementation is messier than expected.

Education consultant Kristen McQuillan identifies a pattern: schools adopt new materials but teachers keep using old methods alongside them, confusing students.

Kids get explicit phonics lessons in the morning, then are told to "guess the word using the picture" later.

For the 1 in 5 students with dyslexia, this inconsistency can be especially damaging.

McQuillan outlines three warning signs that schools need what she calls "Balanced Literacy Rehab":

• Principals think the program is implemented but lack verification tools

• Teachers use both new and old programs simultaneously

• Science of reading stops at 2nd grade, while upper grades stick to outdated comprehension strategies

The market gap is quite obvious. Schools need implementation support tools like principal observation guides, teacher coaching platforms, and systems that ensure instructional coherence across grade levels.

The implementation challenge represents a massive opportunity for companies that can bridge the gap between curriculum adoption and actual classroom practice.

AI Teacher Assistants Save Time But Create New Risks

Nearly two-thirds of teachers used AI during the 2024-25 school year, saving up to six hours weekly.

But a new Common Sense Media report found that popular tools like ChatGPT, Google Gemini and MagicSchool pose "moderate risk" to students and educators.

Why? 

These tools make it too easy to funnel content directly to students without review. 

When asked about debunked claims, some AI assistants suggested classroom lessons exploring the topic rather than noting it was false information.

Even worse, when creating behavior plans for students, some tools gave different suggestions based on race, offering varying recommendations.

But here's the thing - teachers still want these tools. The Gallup survey shows clear time savings and other benefits.

The opportunity is building AI teacher assistants that are both useful and safe.

Innovators could help by creating built-in bias detection, content review processes, and clear guardrails around sensitive applications like IEPs.

The Common Sense Media report shows there's huge upside to AI in education, but also clear market need for more thoughtful implementations.

More Quick Hits

Check out more news stories:

• Federal special ed oversight changes — Staff cuts at the Department of Education mean families may have to pursue due-process hearings through overburdened state systems

• Education grant portal targeted — Cybersecurity firm identified phishing campaign spoofing the Department of Education's G5 grant portal to harvest credentials

• Presidential AI Challenge launches — White House invites teachers and students to develop AI projects addressing community issues, with finalists presenting at the White House

• ChatGPT Study Mode explained — OpenAI's new feature guides students through problems step-by-step instead of providing direct answers

🔎 Worth Checking Out

Monthly roundup of resources you might like:

• TeachAI: AI Guidance for Schools Toolkit — Comprehensive policy resources and principles for implementing AI in education settings

• SETDA Universal Connectivity Report — Executive summary on connectivity needs and infrastructure requirements for schools

• Comparitech Ransomware Stats — H1 2025 roundup showing continued cybersecurity challenges facing education institutions

• State AI Policy Tracker — Tracker of K-12 AI policies and model frameworks by state

To stay up-to-date on all things education innovation, visit us at playgroundpost.com.