ESEA Title I-A Formulas: A Primer

Title I-A of the Elementary and Secondary Education Act (ESEA) authorizes aid to local educational agencies (LEAs) for the education of disadvantaged children. Title I-A grants provide supplementary educational and related services to low-achieving and other students attending elementary and secondary schools with relatively high concentrations of children from low-income families. The Title I-A program is the largest grant program authorized under the ESEA and is funded at $18.4 billion for FY2023. The U.S. Department of Education (ED) determines Title I-A grants to 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 these formulas. 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 ratably 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. Once funds reach LEAs, the amounts allocated under the four formulas are combined and used jointly. This report provides a general overview of the key components of each formula.