The Department is distributing $20 million in Rural School Aid funding in fiscal year 2027, including $16 million from the fiscal year 2027 General Appropriations Act (GAA) (line item 7061-9813 ) and $4 million from the fiscal year 2026 Fair Share Supplemental Budget.
In accordance with the line-item language, the Department identified districts eligible for Rural School Aid based on student density (not more than 35 students per square mile) and per capita income (less than $58,132 per capita according to 2023 data from the Department of Revenue). Based on these criteria, there are 67 school districts eligible to receive Rural School Aid in fiscal year 2027 .
Rural School Aid is allocated across three priority groups based on student density. Priority 1 districts serve not more than 11 students per square mile, Priority 2 districts serve more than 11 and not more than 21 students per square mile, and Priority 3 districts serve more than 21 and not more than 35 students per square mile. The Department allocated $10.0 million (50 percent) for Priority 1 districts, $6 million (30 percent) for Priority 2 districts, and $4 million (20 percent) for Priority 3 districts. The Rural School Aid that districts in each priority group receive is based on a prorated share of their fiscal year 2027 Chapter 70 target aid.
Rural School Aid can be used for a wide variety of purposes to support district operations, with priority given to efforts to increase regional collaboration, consolidation, or other strategies to improve long-term operational efficiency and effectiveness.
The Department will distribute the funding in two rounds, the first in October 2026 and the second in April 2027. Once received, the funds should be deposited in a separate account so that they can be spent without further action on the part of the local appropriating authority by June 30, 2027. Districts are required to complete a brief survey to report on planned uses of the funds each year. Rural School Aid is reported as a state grant expenditure on the End of Year Report.
Please direct all questions regarding Rural School Aid to Michelle Griffin or 781-338-6515.
Last Updated: August 13, 2026