ACE Act

The "All Children are Equal Act" seeks to amend the Elementary and Secondary Education Act of 1965, specifically concerning the allocation formulas for Title I targeted grants and education finance incentive grants. Congress found that the current dual weighting system, allowing local educational agencies (LEAs) to choose between "percentage weighting" and "number weighting," has inadvertently shifted funds from smaller, high-poverty LEAs to larger ones, contrary to the intent of directing more funding to areas with higher concentrations of economically disadvantaged children. Currently, LEAs select the weighting system (percentage or absolute number of eligible students) that yields the highest grant amount. However, studies confirmed that the number weighting option often favors very large LEAs, even with lower poverty percentages, thereby disadvantaging smaller LEAs and undermining equitable distribution. This unintended consequence has been documented by the Congressional Research Service and the National Center for Education Statistics. To rectify this imbalance, the bill mandates a transition for both targeted grants and education finance incentive grants. While LEAs will continue to use the larger of the two weighting amounts through fiscal year 2025, beginning in fiscal year 2026, grant calculations will exclusively use the percentage weighting method. This change aims to ensure federal funds are more effectively directed to local educational agencies with the highest concentrations of economically disadvantaged students, aligning with congressional intent.