The bill amends the "The Education Equity and Property Tax Relief Act" by revising the formula for calculating permanent foundation education aid for school districts. It introduces a new subsection (a)(3) to include an additional amount to support school districts with students residing in housing taxed in accordance with § 44-5-13.11. This amount is determined by multiplying a housing factor of 40% by the core instruction per pupil amount and applying it to all resident children in such housing. The bill also modifies the existing language by removing the word "and" before the list of components that make up the foundation education aid and inserting the new support amount for school districts.

Furthermore, the bill adjusts the determination of the state's share of foundation education aid in § 16-7.2-4. It adds the percentage of students residing in housing taxed in accordance with § 44-5-13.11 to the calculation. The bill also establishes a poverty loss stabilization fund for districts that experience a significant decline in their state share ratio. The act is set to take effect upon passage and will apply to all school years commencing on or after July 1, 2024.