This bill appropriates up to $25 million from the Property Tax Relief Fund to support certain school districts facing increased health care costs. The funds will be distributed to qualifying school districts that have implemented allowable adjustments to their adjusted tax levy for health care cost increases during the 2026-2027 school year. The amount each qualifying district receives will be based on its proportionate share of the total statewide increase in health care costs among all school districts, with the total distribution not exceeding $25 million.

To qualify for these funds, school districts must meet specific criteria, including spending below adequacy as defined by current law, having a maximum adjusted tax levy increase authority that is less than the difference between their local share and adjusted tax levy from the previous year, lacking available banked cap for the adjusted tax levy, and utilizing their maximum adjusted tax levy increase authority in the specified school year. The bill is set to take effect immediately upon passage.