The bill, introduced by Representative Callender, enacts a new section, 3317.50, of the Revised Code, which establishes provisions regarding school districts that initiate legal actions against the state concerning the calculation and distribution of foundation funding. Under this new section, the Department of Education and Workforce is mandated to withhold state foundation funding from any school district that is a complainant or part of a complainant in such legal actions. The withheld funds will be certified to the Director of Budget and Management and transferred into a newly created state foundation funding escrow fund. The bill stipulates that the withheld funds will only be released to the school district upon the termination of the legal action or the district's withdrawal from it.

Additionally, the bill includes appropriations for fiscal years 2026 and 2027, allowing the Director of Education and Workforce to certify the necessary amounts for releasing withheld funds from the escrow fund to the Director of Budget and Management. This ensures that the funds can be appropriately allocated when required. The bill also outlines that the Director of Budget and Management will establish accounts to track the source and amount of funds for each appropriation made under this act, ensuring compliance with existing legislative provisions.