The bill amends Section 16-7.2-3 of the General Laws under "The Education Equity and Property Tax Relief Act" to establish a permanent foundation education aid formula for school districts. This formula includes a core instruction amount based on regional expenditure data and an additional amount to support high-need students, which is determined by factors such as family income and multilingual learner status. The bill mandates that the Department of Elementary and Secondary Education develop a new poverty measure by October 1, 2022, to better identify students in need, and it requires annual reporting on the use of funds and the number of students qualifying for assistance.

Additionally, the bill introduces new provisions requiring the department to evaluate and recommend funding solutions for multilingual learners and to develop alternatives for identifying students from low-income families by October 1, 2024. By October 1, 2025, the department must propose funding alternatives to increase state education aid based on poverty density levels within districts, considering methodologies used in Massachusetts. The act will take effect upon passage, aiming to enhance educational equity and support for districts with high poverty rates.