The bill amends the Education Equity and Property Tax Relief Act to establish a permanent foundation education aid formula, which will be updated annually. This formula includes a core instruction amount based on regional expenditure data and student numbers, as well as additional support for high-need students, such as those below 185% of the federal poverty guidelines and English language learners. The bill also revises the determination of the state's share of foundation education aid, taking into account a district's capacity to generate revenue and the concentration of high-need students. A provision is added to ensure that if the state share ratio is less than the community's and the district has a high percentage of impoverished PK-6 students, the state's share will match the community's. Communities are required to fund their school districts at or above the local share by July 1, 2028, and cannot reduce support until the school committee is fully funded. The bill also addresses direct state funding for excess costs associated with special education students.

The bill includes changes to the distribution of funds for excess educational costs, funding for career and technical education, pre-kindergarten programs, and the establishment of a stabilization fund for specific schools with financial needs. It also discusses state funding for transportation costs and introduces a regionalization bonus for public school districts that regionalize. The bill removes language regarding additional state support for English learners, suggesting a policy or funding change, and defines state support for school resource officers. Categorical programs will be funded according to a transition plan, and the act will take effect on July 1, 2023, for the 2023-2024 fiscal year.