The Senate on Wednesday approved a $391 increase in per-student foundation funding for public schools for the 2025–2026 school year, raising the amount from $7,771 to $8,162. The bill, sponsored by Sen. Jane English, R–North Little Rock, now moves to the House for consideration.
Foundation funding is the primary mechanism the state uses to distribute public education dollars and is calculated by multiplying the per-student amount by each district’s average daily membership. While the Legislature recommends how districts should allocate those funds—such as for salaries or staffing—local districts retain broad discretion in spending decisions.
In addition to the base amount, the bill earmarks $320 for the school district’s share of employee health insurance, a shift from past practice where those costs were embedded in the funding matrix. For the 2026–2027 school year, the per-student base drops slightly to $8,037, with $333 separately designated for health insurance, maintaining overall support.
Funding levels under the bill also affect the state’s Education Freedom Account program, which provides 90% of foundation funding to students using state support to attend private or home schools. That means eligible students would receive $7,346 in 2025–2026 and $7,233 in 2026–2027 through the LEARNS Act program.
The bill includes modest increases in categorical funding for alternative learning environments, English language learners, and low-income students, based on each district’s percentage of students eligible for free or reduced-price lunch.