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Title 1 Funding: Understanding and Using Title 1 Funds in Schools
November 26, 2024

Title 1 Funding: Understanding and Using Title 1 Funds in Schools

Title 1 funding is the largest federal financial assistance program available to schools and districts across the US. The program plays a crucial role in supporting academic outcomes for disadvantaged students as it provides funds to schools with high proportions of students from low-income families to boost academic achievements through a wide range of eligible activities. The allocation of Title 1 funds follows complex eligibility criteria and distribution formulas that administrators need to be familiar with in order to get access to funding.

This article aims to provide school leaders with all the information that they need to determine if they qualify for Title 1 funding and how to understand how much they can receive. We will discuss what options are available and what programs qualify.

Meanwhile, if you need synchronous, real-time, online core or supplemental instruction to fill teacher vacancies, check out Fullmind. Keep in mind that the salaries of core teachers and tutors in Title 1 schools are allowable expenses under this program.

What Title 1 Funding Is

Title 1 funding refers to a financial program of the U.S. Department of Education that distributes funds to schools and districts with a high percentage of students from low-income families. The purpose of Title 1 funds is to help schools establish entity-wide programs that help disadvantaged students improve their academic achievements. This aims to break the link between high poverty/vulnerability and low academic performance/achievement.

At the moment, Title 1 funding constitutes the largest federal assistance program for public schools across the US. Title 1 funds were originally introduced as part of the Elementary and Secondary Education Act (ESEA), enacted in 1965. Since then, this provision has been reauthorized a number of times. Currently, Title 1 funding is governed by the Every Student Succeeds Act (ESSA) of 2015.

To be eligible for this financing program, a school needs to have a minimum of 40% of students from low-income families according to the definition used by the U.S. Census Bureau.

There are a few different types of Title 1 funding:

  • Title 1, Part A: This funding program provides financial assistance to Local Educational Agencies (LEAs) and schools with high numbers of students from low-income families. It aims at improving basic programs operated by LEAs. This is the largest portion of Title 1 funding and can be used by schools and districts nationwide. It is disbursed via schoolwide programs and targeted assistance programs, discussed shortly.
  • Title 1, Part B: This funding is allocated as State Assessment Grants to develop the standards and assessment requirements under Title 1, conduct assessments, and audit them. State Educational Agencies (SEAs) and LEAs are eligible for this aid.
  • Title 1, Part C: This comprises state grants under the Migrant Education Program that aims to ensure that all migratory children meet the high academic standards in each state and graduate with a high-school diploma.
  • Title 1, Part D: This authorizes Prevention and Intervention Programs for Children Who Are Neglected, Delinquent, or At-Risk in order to improve educational services for students and youth in local, tribal, and state institutions to be able to achieve the same academic standards as all other children in the state.

How Title 1 Funding Works

There is a specific implementation process that Title 1 fund distribution follows.

Title 1 funding flows in the following way:

  • The U.S. Department of Education distributes funds to SEAs.
  • SEAs distribute funds to LEAs.
  • LEAs distribute funds to eligible public schools.

Eligible schools need to submit an application that describes how the funds will be used to support academic achievements and that shows the school leaders’ dedication to improve academic outcomes.

Title 1 funds can be provided in the form of grants, allocations, and reallocations.

Who Can Use Title 1 Funding

Title 1 funds can be used by schools that have at least 40% of students coming from low-income families. According to these criteria, over 60% of traditional and charter public schools are eligible. While funding is generally available to public primary and secondary schools, individual private school students that live in public school attendance areas might also be eligible.

There are two main ways in which Title funding is channeled:

  • Schoolwide Programs: Schoolwide plans provide services to all students in an eligible Title 1 school (where 40% or more of students are low-income). In general, these are more flexible and more beneficial as federal government resources can be used as vehicles for reforming the entire school system and improving the academic performance of the whole student body. A schoolwide plan needs to be developed in a way that enhances the achievements of all students in the school, especially low-achieving students, and needs to involve the participation of the LEA, principals, teachers, administrators, parents, and community members. Title 1 schoolwide programs have a real potential to change the reality for vulnerable schools and entire communities.
  • Targeted Assistance Programs: Targeted assistance plans use funds to provide assistance to eligible students who are identified as being at the highest risk of failing to meet state academic standards. These programs can be operated in schools at LEAs with 35% or more of students living in poverty. Services are provided supplementally, in addition to the regular instruction that all students at the school receive. They are offered to selected students who don’t necessarily include all low-achieving students. Targeted assistance programs are generally less effective as they don’t involve meaningful changes at the core of the school and might not reach some deserving students.

What Title 1 Funds Can Be Used For

According to federal laws, Title 1 funds can be used for remedial instructional and non-instructional initiatives that aim to improve the entire educational program across the school in an effort to enhance the performance of students with the lowest achievement scores. An important requirement for eligible programs is to be schoolwide and to strive to benefit the entire student body. This provides schools and districts with some flexibility in allocating Title 1 funds as long as it contributes to improving the academic achievements of economically disadvantaged students.

Some examples of eligible activities include:

  • Supplemental instructional services such as tutoring for reading, math, or science support
  • After-school programs focused on academic activities such as tutoring, homework help, or STEM support
  • Summer schools that aim to provide catchup opportunities or prevent learning loss outside the academic year
  • Programs for students with disabilities and learning difficulties such as tutoring or adaptive technology
  • Early childhood programs such as early literacy and math skills development
  • Field trips for educational purposes such as visits to museums, historic sites, or zoos
  • Alternatives to suspension that strive to reduce dropout rates and improve academic outcomes
  • Instructional materials and resources including textbooks, workbooks, teacher guides, computers, smartboards, and other technological devices used for educational purposes
  • Software licenses for instructional and assessment apps at Title 1 schools
  • Curriculum and instruction licenses for Title 1 schools
  • Parental involvement activities and events such as parent workshops or family literacy nights
  • Salaries for Title 1 teachers, tutors, and administrators as long as they are allocable
  • Salaries for substitute teachers for core academic programs at Title 1 schools
  • Professional development for teachers that aim to improve educators’ skills such as workshops, trainings, and others
  • Employee benefit programs, health insurance, unemployment insurance, pension plans, and others

Meanwhile, Title 1 funds cannot be used for items such as salaries for staff serving non-Title 1 schools, office furniture and supplies, non-education related appliances, non-classroom use furniture, school uniforms, employee awards, and parent award events.

How Title 1 Funding Has Changed

Title 1 funding was initiated almost 60 years ago, in 1965, under the Elementary and Secondary Education Act. The Act was signed into law by President Lyndon Johnson and marked a turning point for the education system in the US as ongoing federal funding for education was introduced for the first time. Until then, education was largely managed and funded by state and other local authorities.

As part of the ESEA, Title 1 funds were designed to offer supplemental federal assistance to LEAs with high concentrations of students from low-income families in order to improve education services to educationally deprived children.

Upon its introduction, Title 1 funding was allocated based on a single formula. This formula multiplied a state per-pupil expenditure (SPPE) factor by the number of students from low-income families (formula-eligible children) to determine the authorization amount. As Title 1 funds are meant to be disbursed as supplemental programs, the logic was to provide additional 40 cents for every SPPE dollar spent on education services delivered to economically disadvantaged students. These initial grants turned into what is now known as Basic Grants.

Title 1 funding continued changing and evolving throughout the years. Concentration Grants were introduced in the 1970s. The No Child Left Behind Act (NCLB) of 2002 enabled Targeted Grants and Education Finance Incentive Grants (EFIGs).

Currently, there are four grants under which Title 1 funding can be disbursed, and each one of them uses a different formula. It is important to note that a single district can receive funding from more than one type of grants.

The four types of Title 1 grants and their formulas are:

  • Basic Grants for school districts with at least 10 formula-eligible students and 2% of the school-age population being formula-eligible. This formula continues to provide funding based on the number of low-income students and the general district needs.
  • Concentration Grants for districts with more than 6,500 formula-eligible students or 15% of the school-age population being formula-eligible. This formula offers additional funds to districts with a high concentration of disadvantaged students.
  • Targeted Grants for school districts with a minimum of 10 formula-eligible students and 5% of the school-age population being formula-eligible. This formula provides funding to districts with the most vulnerable students according to the number of students and their level of poverty.
  • Education Finance Incentive Grants (EFIGs) for districts with at least 10 formula-eligible students accounting for a minimum of 5% of the school-age population. This formula allocates funding to districts with high poverty and low per pupil funding.

Formula-eligible refers to students that qualify towards a school’s eligibility for Title 1 funding or students that come from low-income families or meet other criteria.

The purpose of these four formulas is to ensure that funds are distributed in a way that addresses the specific needs of each district and school with students from low-income families. Still, there are some flaws to the formulas that lead to some districts receiving relatively more funds than others.

How Title 1 Funding Is Determined

The allocation of Title 1 funds follows a complex process with complicated calculations in an attempt to ensure equity and access for all eligible students, schools, and districts.

The main factors that affect the amount of Title 1 funding to be received include:

  • Number of students from low-income families based on census data and participation in programs such as the National School Lunch Program (NSLP)
  • Number of students from migrant families, in foster care, and other qualifying conditions (for different types of Title 1 funding)
  • Per-pupil funding allocation that varies by state and district to reflect local resources and education needs
  • The four formulas for calculating Title 1 distributions

The U.S. Department of Education allocates funds to states according to the total amount of available federal funding and the number of eligible students in each state. Then, in each state, funds are allocated in a way that provides more resources to districts with a higher percentage of eligible students. Finally, the allocation of Title 1 funds within the district depends on the number of low-income students in each school. In general, schools with a high share of eligible students receive funding for Schoolwide Programs, while schools with a lower percentage of low-income students get aid for Targeted Assistance Programs.

How Title 1 Funding Varies by State

Title 1 funding varies at the state level depending on two main factors: 1) The number of formula-eligible students in the state and 2) The per-pupil expenditure by state. This means that states with more students from low-income families receive more funding in order to enhance academic outcomes for low-achieving students. In addition, it also means that states that spend more funds on economically disadvantaged students get access to more Title 1 funding as it is designed as supplemental funds that support local efforts to address the needs of low-income students.

According to data from the National Center for Education Statistics (NCES), in the 2015 fiscal year, the average Title 1 allocation per formula-eligible student was $1,227 across the US. However, this amount varied widely from one state to another. The State of Idaho received the lowest allocation of $984 per formula-eligible child, while the State of Vermont got the highest allocation of $2,590 per formula-eligible student.

With regards to locales, large cities tend to get the most funding per pupil ($1,446), and fringe rural locales receive the least ($1,070). Locales with populations of less than 300 have the highest per-pupil allocation ($1,442), followed by those with populations of 25,000+ ($1,323), while locales with populations of 5,000-9,999 receive the lowest ($1,107).

Bottom Line

The introduction of Title 1 funding in 1965 was a real game-changer to the US education system as it marked the entry of sustainable federal funding into public schools. Title 1 funds provide a major opportunity for eligible districts and schools to boost the academic achievements of all students, especially those from low-income families. However, the program is associated with complex intricacies that school and district administrators have to be intimately familiar with in order to benefit from available opportunities.

To solve the problem of teacher shortages in your school or district, check out Fullmind services. Keep in mind that teacher and tutor salaries are eligible for Title 1 funding in participating schools.