ACE Act

This bill, known as the All Children are Equal Act, changes how federal education funds are distributed to local school districts under Title I of the Elementary and Secondary Education Act. It directly affects school districts that receive targeted grants and education finance incentive grants by adjusting the formula used to calculate how much money each district receives. The key change is that starting in fiscal year 2026, the bill will use only percentage-based weighting instead of the current dual system that also considers the absolute number of students, which the bill argues better targets funding to districts with high concentrations of economically disadvantaged students regardless of district size. This shift aims to ensure smaller districts with high poverty rates receive adequate funding without being disadvantaged by having fewer total students.