Title I, Part A (Title I) of the Elementary and Secondary Education Act (ESEA), as amended provides financial assistance to local educational agencies and schools with high numbers or high percentages of children from low-income families to help ensure that all children meet challenging state academic standards. Federal funds are currently allocated through four statutory formulas that are based primarily on census poverty estimates and the cost of education in each state.
Section A of Title I provides grants to states to distribute directly to school districts. This is by far the largest source of federal money for local schools.
School districts do not have to apply for Title I funding as they would have to for a competitive grant. If a school district qualifies for Title I funding, it is entitled to the money. However, the district must submit to the state education agency a plan for how it will use the funds to improve academic achievement among disadvantaged students.
“Disadvantaged” students are those who come from low-income families, are in foster homes, or are neglected or delinquent, or who live in families receiving temporary assistance from state governments.
To read more from the U.S. Department of Education click here