Under the current grant structure, many federal education grants are distributed to school districts based on enrollment numbers, and those funds must be used for specific purposes. Many rural school districts receive so little funding from the formula-based grants that the districts cannot use the funding from any single grant to carry out a meaningful activity.
Grants awarded on a competitive basis also pose obstacles for many rural school districts.
The districts are often so small that they lack the resources required to write and manage proposals for competitive grants. The Rural Education Initiative Act addresses both problems facing rural school districts. The bill would allow a school district to combine funds received from certain formula-based grants and use them for a single purpose. In addition, a rural school district would have the option to forego competitive grants programs, instead receiving a direct payment based on the size of the school district and the formula-based funding that district received. In order for a school district to qualify for the Rural Education Initiative Act, it must have fewer than 600.