The bill amends Minnesota Statutes 2024, section 124D.98, to modify the literacy incentive aid program by establishing new eligible uses for literacy aid and appropriating funds for this purpose. The term "literacy incentive" is replaced with "basic literacy aid," and new subdivisions are added to define various types of literacy aid, including basic literacy aid, English learner literacy aid, and targeted literacy aid. The bill outlines how these aids will be calculated based on factors such as adjusted average daily membership and concentration factors for English learners and poverty. Additionally, it specifies that school districts must use their literacy aid to meet the requirements and goals of their local literacy plans.

The bill also includes provisions for the commissioner to determine eligibility for free and reduced-price meals, which will impact the calculation of targeted literacy aid. The effective date for these changes is set for fiscal year 2026 and later. Furthermore, the bill appropriates funds from the general fund to the Department of Education for literacy aid, detailing specific amounts for the fiscal years 2025, 2026, and 2027.

Statutes affected:
Introduction: 124D.98