New Compliance Requirements Under Section 164k – State School Aid Act (FY 2025–2026)
Effective for fiscal year 2025–2026, Section 164k (MCL 388.1764k) of the State School Aid Act introduces significant compliance obligations for districts and ISDs. Noncompliance can result in a 5% withholding of state aid under Section 22b (districts) or Section 81 (ISDs) until corrective action is taken.
What You Need to Know
The Michigan Department of Education (MDE) will enforce these requirements. If a violation is reported and confirmed, funding withholding will apply. Districts/ISDs should act now to ensure compliance in the following areas:
- School Meal Regulations
- All food provided in breakfast and lunch programs must comply with federal school meal regulations.
- Action: Review menus and procurement processes for compliance.
- All food provided in breakfast and lunch programs must comply with federal school meal regulations.
- Household Applications
- To the extent practicable under federal rules, districts/ISDs must require each student household to complete the child nutrition and education benefits application, even if universal meals are offered.
- Action: Update enrollment packets and communication to families.
- Pupil Count Day Incentives
- Starting after the Fall 2025 count day, districts/ISDs cannot provide financial incentives for students to attend pupil membership count day.
- Action: Audit current practices and remove any monetary incentives.
- Survey Transparency
- Districts/ISDs must
- Post survey questions and results on their website.
- Notify parents/legal guardians about surveys.
- Applies to surveys from the district, ISD, or any local, state, or federal government entity.
- Action: Create a survey disclosure protocol and web posting process.
- Districts/ISDs must
- Curriculum Notification (Effective FY ending Sept. 30, 2026)
- If a district/ISD uses a curriculum not on the state’s evidence-based list (per MCL 380.1280f) for grades K–5, it must notify parents with:
- A statement that the curriculum is not evidence-based or aligned to state standards, which could negatively impact academic outcomes.
- An explanation of why the district is not using an evidence-based curriculum.
- A plan and timeline for adopting an evidence-based, standards-aligned curriculum.
- Action: Prepare template notifications and review curriculum adoption timelines.
- If a district/ISD uses a curriculum not on the state’s evidence-based list (per MCL 380.1280f) for grades K–5, it must notify parents with:
Connection to Section 1280f (MCL 380.1280f) – Evidence-Based Literacy Standards
Section 1280f of the Revised School Code establishes Michigan’s framework for early literacy and reading proficiency. It requires districts to:
- Implement evidence-based reading programs aligned with the Science of Reading
- Provide ongoing professional development for teachers
- Use approved screening and progress-monitoring assessments
By January 1, 2026, MDE must publish an official list of Tier 1 evidence-based curricula (MCL 380.1280f(5)).
How Sections 1280f and 164k Intersect:
- Section 1280f sets the academic standards and defines what qualifies as “evidence-based.”
- Section 164k enforces compliance through funding conditions and transparency requirements, ensuring districts/ISDs communicate clearly with parents and align instructional practices with state standards.
Risk Management Guidance
- Start compliance audits now—especially for meal programs, survey practices, and curriculum planning.
- Develop parent communication templates for curriculum notifications.
- Train staff on new restrictions (e.g., count day incentives).
- Monitor MDE updates for the approved curriculum list and reporting protocols.
Bottom Line: Section 164k adds financial consequences to operational compliance. Districts/ISDs should implement proactive measures to avoid funding withholdings.
For inquiries, please contact Eric Feldman at Feldmane@millerjohnson.com or (313) 435-2355.