ACE Act

The ACE Act changes how federal education grants are calculated to better support schools in high-poverty areas. It phases out a current system that favored larger school districts by shifting to a formula based solely on the percentage of students from low-income families, starting in 2024. This directly benefits smaller school districts with high concentrations of economically disadvantaged students that were previously disadvantaged under the old dual-weighting system. The change aims to align funding more closely with congressional intent to direct more resources to schools serving the most economically disadvantaged students.