School aid: local districts; grant program for school districts to maintain smaller classroom sizes; provide for. Amends 1979 PA 94 (MCL 388.1601 - 388.1896) by adding sec. 31c.

SB 493 creates a $65 million grant program for Michigan school districts to reduce K-3 class sizes, targeting high-need areas (Opportunity Index Band 4+). Districts must use at least 30% of their existing state aid funds to support these small classes, with average class sizes capped at 17 students (max 19 per class). The program prioritizes geographic diversity and specifically allocates funds to Muskegon Heights, Benton Harbor, Flint, and Wayne-Westland school districts for the 2025-2026 school year. Funds are a temporary two-year initiative, with unspent money carrying over to 2026-2027 to lower K-3 class sizes by 2030.