This bill establishes a new grant program aimed at supporting school districts facing extraordinary needs and fiscal capacity disparities in providing adequate education. The program, inserted as section 198:42-a into RSA 198, will provide funding assistance to eligible K-12 school districts, allowing them to utilize grant funds in a manner that best addresses their local educational needs without restrictions on specific groups. School districts receiving these grants must submit a plan to the Department of Education detailing essential programs and accountability indicators, which will be evaluated for their potential to contribute to academic growth and achievement.

Additionally, the bill outlines the requirements for grant accountability, including the use of statewide assessments or the development of standardized assessments to measure progress. School districts are mandated to submit annual progress reports to the Department of Education, with grant funds being withheld until these reports are submitted. The state board of education is authorized to adopt rules for the implementation of this section. The act is set to take effect on July 1, 2027.