Mayor Bill de Blasio has said the city is taking steps to help families of students with disabilities.
The mayor and Assembly Speaker Sheldon Silver say the Department of Education will now expedite reimbursements to parents whose children attend special education programs outside the city.
They also say the process of placement decisions will be streamlined.
"Parents often found themselves waiting months and months and months for reimbursement checks. So, let's face it: the system penalized struggling parents in many, many ways, even when it was clear the parents claim was appropriate," de Blasio said.
"For too long, parents of special needs children have had to engage in protracted legal battles in order to get their children appropriately placed," said Assembly Speaker Sheldon Silver.
The changes are expected to be in place by September 1.