An Act relating to funding for residential schools; and providing for an effective date.

SB 257 amends Alaska law to adjust funding for residential schools by establishing new reimbursement rules for school districts. It directly affects districts operating residential schools and students attending them by: (1) reimbursing one round-trip transportation cost (least expensive option) between a student's home and school, and (2) providing a monthly room/board stipend per student based on region, ranging from $1,200 (Southcentral) to $1,776 (Northern Remote). The stipend amounts are calculated as a percentage of Alaska's base student allocation, with specific regional rates set in the bill. The changes apply retroactively from July 1, 2025, and take effect immediately.