Policy Brief 9 - Title I Funding and School Integration - The Current Funding Formula’s Disincentives to Deconcentrate Poverty and Potential Ways Forward

Oct 15, 2026

Policy Brief 9 examines how Title I funding under the Elementary and Secondary Education Act shapes incentives related to school integration and poverty concentration. It explains that allocations depend on low-income student counts and concentrated poverty, so districts can lose money when poverty levels fall through interdistrict or internal integration efforts. The brief describes concentration and targeted grant mechanics, outlines financial and administrative consequences for participating in desegregation, and summarizes calls from advocates and lawmakers for formula reform to align funding with integration goals.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

AccessFree to download

How Title I Funding May Operate to Discourage Racial and Economic Integration

What Can Be Done?

Conclusion

POLICY BRIEF 9 | NOV 2019 TITLE I FUNDING AND SCHOOL INTEGRATION: THE CURRENT FUNDING FORMULA’S DISINCENTIVESTO DECONCENTRATE POVERTY AND POTENTIAL WAYS FORWARD TABLE OF CONTENTS HOW TITLE I FUNDING MAY OPERATE TO DISCOURAGE RACIAL AND ECONOMIC INTEGRATION WHAT CAN BE DONE? CONCLUSION p. 04 p. 05 p. 06 Policy Brief 9 | Title I Funding and School Integration page 2 of 8 In the aftermath of Brown v. Board of Education and the civil rights movement, Congress enacted the Elementary and Secondary Education Act (ESEA) to prioritize educational opportunity for all Americans. Title I of the ESEA is the single largest federal investment in K-12 schools, making it a key tool for driving opportunity and closing the achievement gap.1 Title I provides financial assistance to schools based on the number of low-income students they enroll.2 Schools receiving the grants are required to comply with federal non-discrimination statutes, theoretically incentivizing equity in schools and districts across the country.3 The precise amount of Title I funds a school receives per low-income student depends on several factors. Two key factors are district size and the level of concentrated poverty in the district and school. While well intentioned, these and other more complicated factors in Title I’s funding formulas can disincentivize innovative interdistrict programs that promote racial and economic integration. In short, Title I allocations can shrink as districts reduce their overall levels of school poverty. These formulas may also discourage districts from taking steps to integrate schools internally, within the district (see discussion below) . Asa notable Brooklyn school learned in 2018, increasing diversity cost it almost $120,000 when its poverty level dipped from 60% to 59% .4 Since 2011, the National Coalition on School Diversity has urged Congress to change the formula, stating that “Title I’s funding formulas provide incentives for school districts to maintain high poverty levels and no incentive to deconcentrate poverty or foster voluntary transfer or assignment policies with surrounding districts.”5 NCSD’s policy brief built on the work of Professor Derek Black, who had explored the issue in depth in a 2010 law review article.6 Unfortunately, Congress left the existing Title I funding formula intact when the ESEA was finally reauthorized in 2015. NCSD has continued to press this issue, most recently in Crafting a Policy Agenda for 2019 and Beyond ,7 and the Century Foundation also recently included the issue in A Bold Agenda for School Integration.8 The need to reform Title I’s funding formulas is well known. Congress authorized a program to study those funding flaws as part of the 2015 reauthorization of ESEA.9 Though no report has been released, the issue is gaining new attention with the release of education platforms of two leading Democratic presidential candidates – Senators Elizabeth Warren and Bernie Sanders – who have called out the formula as a problem that needs to be addressed.10 Senator Warren’s education plan states,“to ensure that school districts won’t have to choose between integration and federal funding, my plan will guarantee that districts will retain access to Title I funds even if their successful integration efforts cause the districts to fall below current Title I funding thresholds.”11 Senator Sanders’ education plan includes a proposal to “triple Title I funding to ensure at-risk schools get the funding they need and end funding penalties for schools that attempt to desegregate.”12 Policy Brief 9 | Title I Funding and School Integration page 3 of 8 HOW TITLE I FUNDING MAY OPERATE TO DISCOURAGE RACIAL AND ECONOMIC INTEGRATION The Title I Concentration Grants formula allocates dollars to school districts if the district has at least 15% of its students in poverty, or 6,500 poor children, whichever is less.13 Targeted Grants use the same data as Concentration Grants, but weig

FAQs

How does Title I funding determine how much money a school district receives?

Title I provides financial assistance based on the number of low-income students a district enrolls and factors such as district size and the level of concentrated poverty.

What incentives in the current Title I formula can discourage integration?

Allocations can shrink when districts reduce overall levels of school poverty, and districts may lose money when low-income students transfer or when poverty percentages dip below thresholds.

Why can integration also reduce schools’ flexibility in planning and spending?

Schools with 40% or more low-income students can use funds for universal school-wide programs, while those below 40% must use targeted assistance programs, increasing administrative costs and limiting programmatic decisions.

Oct 15, 2026

Uploaded by Alex Sinclair