Sponsors (2)
The bill standardizes and refocuses federal K–12 formula funding to better target high-poverty, small LEAs and provide predictability from FY2026, but it does so by redistributing existing dollars and fixing the formula in ways that will reduce funding for some districts, risking program cuts and trade-offs in equity.
Students and schools in high-poverty, small-student-count LEAs will receive fairer, more targeted per-student federal formula funding, improving resources and helping reduce education inequities in those high-poverty communities.
States and LEAs gain a clearer, predictable grant formula beginning FY2026 (and the bill preserves the larger-of-(B)-or-(C) rule through FY2025), making multi-year budgeting and program planning more stable for districts and state education agencies.
LEAs and states that benefit from the standardized clause (iii) weighted child count will get more stable EFIG awards starting FY2026, aiding financial predictability for those winners.
Some large LEAs or districts that previously received more under the old calculations will lose federal formula funding, reducing resources available to students and potentially forcing staff or program cuts.
Because the bill redistributes existing appropriations rather than increasing total funding, districts that lose share may face budget shortfalls that require cutting programs, services, or staff.
Beginning in FY2026, some LEAs will receive lower grant amounts due to fixing the weighted child count to subparagraph (B), which could lead to reduced classroom resources and support services for low-income students in those districts.
Based on analysis of 4 sections of legislative text.
Introduced March 18, 2026 by Glenn Thompson · Last progress March 18, 2026
Changes how federal Title I and related Elementary and Secondary Education Act formulas count and weight children for grant awards so that percentage-based weighting (which favors high-poverty rates) replaces a number-based weighting (which has favored very large local educational agencies). The bill phases the change: through fiscal year 2025 grant formulas use the larger of two existing weighted-count calculations; beginning in fiscal year 2026 the formulas will use the percentage-focused calculation, shifting how fixed appropriations are distributed among LEAs. The change amends the weighted child-count rules used for Targeted Grants and Education Finance Incentive Grants, explains congressional findings about previous inequities, and does not create new funding — it redistributes existing Title I funds based on the revised weighting rules.