The bill amends Chapter 16-7.2 of the General Laws, known as "The Education Equity and Property Tax Relief Act," by introducing a new section that allows school districts to elect not to spend money on mandates that are not fully funded by the state. This provision will take effect on July 1, 2026. A mandate is defined as any rule, regulation, or policy implemented by the Department of Elementary and Secondary Education that requires a school district to incur expenses without corresponding state funding, including but not limited to the foundation education-aid formula.

If a school district chooses to exercise this option, it must provide written notice to the department by August 31 of the fiscal year in which it intends to refrain from spending. This notice must specify the unfunded mandate and the total dollar amount being saved as a result of not spending on that mandate. Furthermore, the bill stipulates that school districts opting not to spend money on these unfunded mandates will not be penalized or have their state aid reduced as a result of this decision. The act will take effect upon its passage.