Allocating Additional Funding for Low-Income Students: Michigan's Section 25m Funding Proposal

In 2023, Michigan increased funding for school districts with large concentrations of students from families with low incomes. For the 2024-25 school year, the governor has proposed $90 million in additional funding for districts based on the depth of poverty students face. The current proposal includes two main components: districts would be required to apply for discretionary funding through the Michigan Department of Education (MDE), and districts would be required to spend the funds on students from families with the lowest incomes. Though this is a substantial investment, there are drawbacks to how the funds would be allocated and limitations related to identifying low-income students.