Allocation of Funds Under Title I-A of the Elementary and Secondary Education Act

Summary

The Elementary and Secondary Education Act (ESEA) was comprehensively reauthorized by the Every Student Succeeds Act (ESSA; P.L. 114-95) on December 10, 2015. The Title I-A program is the largest grant program authorized under the ESEA and is funded at $14.9 billion for FY2016. It is designed to provide supplementary educational and related services to low-achieving and other students attending pre-kindergarten through grade 12 schools with relatively high concentrations of students from low-income families. Under current law, the U.S. Department of Education (ED) determines Title I-A grants to local educational agencies (LEAs) based on four separate funding formulas: Basic Grants, Concentration Grants, Targeted Grants, and Education Finance Incentive Grants (EFIG).

Annual appropriations bills specify portions of each year’s Title I-A appropriation to be allocated to LEAs and states under each of the four formulas. In FY2016, an estimated 43% of Title I-A appropriations were allocated through the Basic Grant formula, 9% through the Concentration Grant formula, and 24% through each of the Targeted Grant and EFIG formulas. Once funds reach LEAs, the amounts allocated under the four formulas are combined and used jointly.

For each formula, a maximum grant is calculated by multiplying a “formula child count,” consisting primarily of estimated numbers of school-age children in poor families, by an “expenditure factor” based on state average per pupil expenditures for public K-12 education. In some formulas, additional factors are multiplied by the formula child count and expenditure factor. These maximum grants are then reduced to equal the level of available appropriations for each formula, taking into account a variety of state and LEA minimum grant and “hold harmless” provisions. In general, LEAs must have a minimum number of formula children and/or a minimum formula child rate to be eligible to receive a grant under a specific Title I-A formula. Some LEAs may qualify for a grant under only one formula, while other LEAs may be eligible to receive grants under multiple formulas.

This report provides a detailed discussion of each of the four Title I-A formulas used to determine grants. Table A-1 in Appendix A offers an overview of the key elements included in the four formulas. Appendix B provides an overview of Title I-A appropriations levels in recent years.