MA H517

Establishes a Rural Schools Aid Fund with $60 million annual transfer from the General Fund to support districts with 35 or fewer students per square mile and below-average per capita income, with priority given to the lowest-density districts

Creates a Declining Enrollment Fund for districts experiencing at least 35% enrollment decline over 20 years, distributed on a per-pupil basis with priority to districts with the greatest percentage decline

Increases special education reimbursement to 100% of instructional and transportation costs exceeding the threshold, paid in the year costs are incurred, and establishes a legislative commission to review special education financing by June 30, 2026

Provides new transportation funding including full reimbursement of extraordinary rural transportation costs and a Non-Resident Pupil Transportation Fund for students attending schools outside their municipality

Incentivizes regionalization through a School District Regionalization Grant Fund (up to $1.5 million over 3 years), 90% minimum state grant percentage for regional school facility projects, debt relief for closed schools, and $200 per pupil transitional aid for new regional districts' first 3 years