Relating to the sparsity adjustment for certain school districts under the Foundation School Program.

HB 441 adjusts the funding formula for rural school districts under Texas' Foundation School Program by lowering the minimum student attendance thresholds used to calculate basic allotments. Specifically, it reduces the required attendance basis from 350 to 130 students for districts offering K-12 programs meeting attendance or distance criteria (90+ students or 30+ miles from nearest high school district), from 75 to 50 students for K-8 districts (50+ students or 30+ miles), and from 60 to 40 students for K-6 districts (40+ students or 30+ miles). This change directly benefits small, rural school districts with low enrollment by providing more equitable funding relative to their actual student population. The bill takes effect September 1, 2025, and is currently pending in committee.