The Elementary and Secondary Education Act (ESEA), Section 1003A, authorizes state education agencies (SEAs) to use up to 3 percent of the state’s Title I, Part A (Title I-A) grant to create a grant program for local education agencies (LEAs) to support direct student services.

The US Department of Education notified the Office of the State Superintendent of Education (OSSE) that its award will increase by more than 20 percent from fiscal year 2026 (FY26) to FY27. This significant increase makes it possible to take advantage of the direct student services opportunity while also increasing the funds made available to LEAs through the Title I-A formula.

OSSE consulted with LEAs this spring, and the majority expressed interest in a grant opportunity for direct student services. Based on this feedback and the large increase to the state’s Title I-A award, OSSE has decided to take the 3 percent reservation to launch this grant program, called Direct Investment in Students, in FY27.

The competitive grant will support LEAs to provide direct student services for:

• Enrollment in academic courses not otherwise offered at a student’s school;
• Credit recovery and academic acceleration that leads to a high school diploma;
• Costs for exams (e.g., Advanced Placement [AP] exams), dual enrollment, or other post-secondary coursework that is accepted for credit at institutions of higher education (IHE);
• Personalized learning, such as high-quality academic tutoring; and/or
• Transportation to allow a student at a school identified for comprehensive support and improvement (CSI) to transfer to another public or public charter school.

Information about competitive priorities, program design, and the application process will be forthcoming.

For questions or additional information about this new grant program, please reach out to Jessica Sobin at [email protected] and Sam Angileri at [email protected].