Title I, Part A (Title I) is a formula program to States. The U.S. Department of Education allocates Title I funds to State educational agencies (SEAs) through four statutory formulas (Basic Grants, Concentration Grants, Targeted Grants, and Education Finance Incentive Grants) that are based primarily on the annually-updated census poverty LEA data mentioned above adjusted for the cost of education in each State. SEAs in turn distribute Title I funds to their local educational agencies (LEAs) in accordance with Title I requirements.
Basic, Concentration and Targeted Grants
Basic Grants provide funds to LEAs in which the number of children counted in the formula (formula children) is at least 10 and exceeds 2 percent of an LEA's school-age population. Concentration Grants flow to LEAs where the number of formula children exceeds 6,500 or 15 percent of the total school-age population. Targeted Grants are based on the same data used for Basic and Concentration Grants except that the data are weighted so that LEAs with higher numbers or percentages of formula children receive more funds. Targeted Grants flow to LEAs where the number of formula children is at least 10 and comprises at least 5 percent of the LEA's school-age population.
Education Finance Incentive Grants
Education Finance Incentive Grants (EFIG) distribute funds to states based on factors that measure (1) a state's effort to provide financial support for education compared to its relative wealth as measured by its per-capita income and (2) the degree to which education expenditures among LEAs within the state are equalized. Once a state's EFIG allocation is determined, funds are allocated to LEAs in which the number of formula children is at least 10 and comprises at least 5 percent of the LEA's school-age population.