The bill amends the State School Aid Act of 1979, significantly altering funding allocations for public schools in Michigan for the fiscal years ending September 30, 2025, and September 30, 2026. It appropriates $17,688,951,300 for 2025 and $19,017,010,000 for 2026 from the state school aid fund, along with additional funds from other sources. Key changes include increasing the allocation for fiscal year cash-flow borrowing costs from $1,000,000 to $5,000,000 and adjusting the payment timeline for the school loan bond redemption fund. The bill also mandates that districts with support category buildings allocate at least 10% of targeted student support dollars for interventions, establish the MiStrategyBank for tutoring programs, and enhance accountability through annual reports to parents regarding services and expenditures.

Additionally, the bill introduces a performance-based funding system tied to student performance in state assessments, establishes new definitions and provisions for virtual education, and allocates funds for mental health services and early childhood education. It emphasizes compliance with federal requirements, mandates comprehensive needs assessments for districts, and outlines specific funding allocations for various educational initiatives, including special education and career and technical education programs. The bill also includes provisions for nonpublic schools, disciplinary policies regarding referrals for abortions, and a framework for reimbursement of costs incurred by nonpublic schools for health and safety compliance. Overall, the legislation aims to enhance educational funding, support systems, and accountability while addressing the needs of diverse student populations.