School aid: supplemental; funding for rural and isolated districts; provide for. Amends 1976 PA 451 (MCL 380.1 - 380.1852) by adding sec. 1281d.

HB 4874 requires the Michigan legislature to appropriate at least $12.3 million annually starting fiscal year 2026 for supplemental payments to rural school districts meeting specific criteria defined in existing law (MCL 388.1622d). This bill directly affects eligible rural and isolated school districts by guaranteeing additional state funding beyond their regular school aid. The key provision mandates a fixed annual appropriation for these districts, ensuring consistent supplemental support beginning in 2026. The bill does not change how districts operate or define "rural districts," but rather establishes a dedicated funding stream for them. It is currently in the introduction phase, referred to the Appropriations Committee.