ACE Act
- Sponsor
- Rep. Thompson, Glenn [R-PA-15]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Mar 18, 2026
Bottom line
The ACE Act aims to redirect federal Title I funds towards smaller local educational agencies with high concentrations of poverty by altering the grant allocation formula.
What it actually does
The All Children are Equal Act (ACE Act) amends the Elementary and Secondary Education Act of 1965 (ESEA) to modify how federal Title I grants are allocated to local educational agencies (LEAs). Specifically, for Targeted Grants and Education Finance Incentive Grants, it eliminates the option for LEAs to use a "number weighting" system based on the absolute count of economically disadvantaged students. Instead, it mandates that all LEAs use a "percentage weighting" system, based on the proportion of such students, for fiscal year 2026 and subsequent years.
Proponents argue
Proponents argue that the current dual weighting system, particularly the number weighting alternative, disproportionately benefits very large LEAs, even those with lower percentages of economically disadvantaged students. They contend that this unintended consequence shifts funding away from smaller LEAs with high concentrations of poverty, contrary to the original intent of Title I. By eliminating number weighting, the bill ensures that funds are more effectively targeted to LEAs with the highest percentage of economically disadvantaged children, promoting equity in educational funding.
Opponents contend
Opponents might argue that eliminating the number weighting system could negatively impact large urban or suburban school districts that, while perhaps having a lower percentage of economically disadvantaged students, still serve a substantial absolute number of such students. They might contend that these large LEAs require significant resources to address the needs of their large populations of low-income students, and a shift to solely percentage-based weighting could reduce their funding, potentially disrupting existing programs and services for vulnerable students in those districts.
The bill is short and its core change is clearly articulated, making it accessible for a quick but informed read.
Section 2
Update to Findings on Grant Allocation Equity
This section updates the official findings of the Elementary and Secondary Education Act of 1965 (ESEA) to state that the current Basic Grant Formula does not adequately target funds to schools with the highest concentrations of economically disadvantaged students. It explicitly identifies that the "number weighting" system in Targeted and Education Finance Incentive Grants has shifted funding from smaller to larger local educational agencies, regardless of poverty levels, which is contrary to congressional intent.
Supporters argue
Proponents argue that these findings are crucial for justifying the subsequent formula changes, clearly articulating the problem the bill seeks to solve: ensuring Title I funds are directed to LEAs with the highest concentrations of poverty.
Critics contend
No specific opposition is typically raised against statutory findings unless they contain factually incorrect or highly contentious assertions. The findings here are based on CRS and NCES data.
Tradeoffs
The findings highlight a tension between allocating funds based on absolute numbers of students versus the percentage of students in poverty, acknowledging that the current system has unintended consequences.
Section 3, amending Section 1125(c)(2)(A) of ESEA
Elimination of Number Weighting for Targeted Grants
This provision amends the formula for Targeted Grants under Title I. Starting in fiscal year 2026, local educational agencies (LEAs) will no longer be able to choose between two weighting systems (one based on percentage of economically disadvantaged children and one based on absolute numbers). Instead, they will exclusively use the percentage-based weighting system to determine their grant amounts. For fiscal years through 2025, the existing dual system remains in place.
Section 4(a), amending Section 1125A(d)(1)(B)(i) of ESEA
Elimination of Number Weighting for EFIP Grants (Low Equity Factor States)
Similar to the Targeted Grants, this provision amends the formula for Education Finance Incentive Grants (EFIP) for states with an equity factor less than 0.10. Starting in fiscal year 2026, LEAs in these states will exclusively use the percentage-based weighting system to determine their EFIP grant amounts, eliminating the option to use number weighting. The dual system remains for fiscal years through 2025.
Section 4(b), amending Section 1125A(d)(2)(B)(i) of ESEA
Elimination of Number Weighting for EFIP Grants (Medium Equity Factor States)
This provision makes the same change as Section 4(a) but applies it to states with an equity factor greater than or equal to 0.10 and less than 0.20. Starting in fiscal year 2026, LEAs in these states will exclusively use the percentage-based weighting system for EFIP grants.
Section 4(c), amending Section 1125A(d)(3)(B)(i) of ESEA
Elimination of Number Weighting for EFIP Grants (High Equity Factor States)
This provision extends the same formula change to states with an equity factor greater than or equal to 0.20. From fiscal year 2026 onwards, LEAs in these states will also exclusively use the percentage-based weighting system for EFIP grants.