This bill establishes a new category of State school aid called regional stabilization aid, aimed at ensuring that certain regional school districts receive a minimum level of funding. Specifically, it mandates that regional school districts with more than seven constituent school districts will receive aid equal to the greater of the amount calculated under existing school funding laws or the total State school aid they received in the 2024-2025 school year. This total includes various forms of aid such as equalization aid, special education categorical aid, security categorical aid, transportation aid, adjustment aid, and any Stabilized School Budget aid granted under a specific law.

The bill is set to take effect immediately, but the distribution of regional stabilization aid will begin in the 2025-2026 school year. This legislative measure aims to provide financial stability to larger regional school districts, ensuring they are adequately funded in accordance with their needs and the resources available from the State.