The bill establishes a new section that mandates enrollment stabilization funding for local education agencies in Washington State. Specifically, if a local education agency's combined state revenue for the 2026-27 or 2027-28 school years falls below the revenue that would have been generated using 2025-26 annual average enrollment values, the superintendent of public instruction is required to provide an enrollment stabilization amount for that school year. The bill defines the "2026-27 enrollment stabilization amount" and "2027-28 enrollment stabilization amount" based on the difference between the projected revenue using the 2025-26 values and the actual revenue generated in those years.

Additionally, the bill outlines what constitutes "combined state revenue," which includes various allocations such as general apportionment, special education, and other educational program allocations. It clarifies that the enrollment stabilization amounts are not part of the state's basic education program but can be utilized for any allowable costs within the programs. The provisions of this section will expire on July 1, 2028.