COMPENSATORY EDUCATION ALLOTMENT.

(a) For each student who does not have a disability and resides in a residential placement facility in a district in which the student's parent or legal guardian does not reside, a district is entitled to an annual allotment equal to the basic allotment multiplied by 0.2 or, if the student is educationally disadvantaged, 0.275. For each full-time equivalent student who is in a remedial and support program under Section 29.081 because the student is pregnant, a district is entitled to an annual allotment equal to the basic allotment multiplied by 2.41.

(b) For each student who is educationally disadvantaged and resides in an economically disadvantaged census block group as determined by the commissioner under Subsection (c), a district is entitled to an annual allotment equal to the basic allotment multiplied by the weight assigned to the student's census block group under Subsection (d).

(c) For purposes of the allotment under Subsection (b), the commissioner shall establish an index for economically disadvantaged census block groups in the state that provides criteria for determining which census block groups are economically disadvantaged and categorizes economically disadvantaged census block groups in five tiers according to relative severity of economic disadvantage. In determining the severity of economic disadvantage in a census block group, the commissioner shall consider:

(1) the median household income;

(2) the average educational attainment of the population;

(3) the percentage of single-parent households;

(4) the rate of homeownership; and

(5) other economic criteria the commissioner determines likely to disadvantage a student's preparedness and ability to learn.

(d) The weights assigned to the five tiers of the index established under Subsection (c) are, from least to most severe economic disadvantage, 0.225, 0.2375, 0.25, 0.2625, and 0.275.

(e) If insufficient data is available for any school year to evaluate the level of economic disadvantage in a census block group, a school district is entitled to an annual allotment equal to the basic allotment multiplied by 0.225 for each student who is educationally disadvantaged and resides in that census block group.

(e-1) For each student who is a homeless child or youth as defined by 42 U.S.C. Section 11434a, a school district is entitled to an annual allotment equal to the basic allotment multiplied by the highest weight provided under Subsection (d).

(f) A student receiving a full-time virtual education provided through a full-time virtual campus under Chapter 30B shall be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under Subsection (b) or (e), as applicable.

(g) Not later than March 1 of each year, the commissioner shall:

(1) review and, if necessary, update the index established under Subsection (c) to be used for the following school year, based on the most recent estimates published by the United States Census Bureau; and

(2) notify each school district of any changes to the index.

(h) The state demographer, the Department of Agriculture, and any other state agency with relevant information shall assist the commissioner in performing the commissioner's duties under this section.

(i) On a schedule determined by the commissioner, each school district shall report to the agency the census block group in which each student enrolled in the district who is educationally disadvantaged resides. The agency shall provide to school districts a resource for use in determining the census block group in which a student resides.

(j) The commissioner shall adopt rules for the method of determining the number of students who qualify for an allotment under this section at a campus that participates in the Community Eligibility Provision administered by the United States Department of Agriculture, as provided by the Healthy, Hunger-Free Kids Act of 2010 (Pub. L. No. 111-296).

(j-1) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.

(k) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.

(l) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.

(m) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.

(n) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.

(o) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(1), eff. September 1, 2025.