Nearly £1.5m of extra council funding will be provided to prevent a new special needs school from closing after less than a year.
Hill View School in Somerset was funded by the Department for Education (DfE), but "significant operational difficulties", including water ingress and faulty gates, meant it was not able to welcome more students in February.
Councillors have criticised the DfE for not putting in enough money, with one saying it was "outrageous" for the council to have to "carry the can".
The DfE has been contacted for comment.
The government funded the building of Hill View Special School, near Yeovil, after accepting a bid by Somerset County Council to create more SEND spaces, the Local Democracy Reporting Service reports.
The free school opened in September 2024 for 60 children with special educational needs and disabilities (SEND) and is run by the Oak Partnership Trust.
