Title I funds are distributed to school districts based on census data and the cost of education in each state; Title I funds are not distributed to districts based on free and reduced-price (FRP) meal data. Accordingly, adopting CEP does not impact the amount of Title I funds a district receives.
Adopting CEP could impact how Title I funds are allocated within a district. This is because districts often use an approach called "rank and serve," where individual schools are "ranked" by the level of need in that school (often estimated using FRP data) and then "served" Title I funds accordingly. However, there are a number of ways to distribute Title I funds that allow districts to adopt CEP fully or partially with little or no impact on how Title I funds are distributed.
In districts fully adopting CEP (i.e. in every school), schools may be ranked by their ISPs, by their ISPs*1.6, or by student participation in another federal program like Medicaid.
In districts partially adopting CEP (i.e. in some but not all schools), districts can use ISP for all schools, ISP*1.6 for all schools, or a combination of FRP percentage in non-CEP schools and ISP*1.6 in CEP schools. (The 1.6 multiplier, when applied to the ISP, is a standard proxy for a school's FRP percentage.)
By working with school nutrition, district administration, and financial officers, districts can find ways to adopt CEP partially or fully with little or no impact to the way funding is distributed to schools within that district. Learn more with this resource from FRAC, "Understanding the Relationship Between Community Eligibility and Title I Funding."
Since 1997, the Federal Communications Commission's E-rate program has helped ensure that eligible schools and libraries have affordable access to the Internet. Schools adopting CEP can calculate their use ISP*1.6 to apply for E-Rate funding, in place of free and reduced-price (FRP) meals application data. For more information, visit "New Policy Makes It Easier for Community Eligibility Schools to Participate in E-Rate Program."
States differ in their approaches for distributing state education funding. Some states may require CEP schools to administer alternative income forms to capture free and reduced-price (FRP) meals application data, some states use ISP*1.6 as a proxy for FRP data, and some states don't use either! Luckily, FRAC has a chart to make it easy to find your state's approach to state education funding. To learn more, visit https://frac.org/wp-content/uploads/cep-state-education-data-policies-1.pdf.