ACE Act

This bill changes how the federal government calculates funding for two types of education grants that go to local school districts — Targeted Grants and Education Finance Incentive Grants. Right now, both grants use two different methods to count disadvantaged children in a district — one based on the percentage of poor children and one based on the total number of poor children — and whichever method gives a higher count is used. Starting in 2026, this bill would require Targeted Grants to use only the percentage-based method and Education Finance Incentive Grants to use only the number-based method.

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