Apr 13, 2023
At first glance, choosing to revitalize your school district by adopting new educational technology can feel like an insurmountable hill to climb. However, there are many different grant and funding programs to help your school district do just that. Below, you’ll find the different sources of funding and how they can be used to ensure your district is at the forefront of providing excellent educational experiences for students and their families.
Types of Educational Grants
It’s important to note that there are two main types of grants: formula grants (also often called state-administered programs) and discretionary grants. Although some funding programs may work outside of these two frameworks, it’s rare to see.
Formula Grants
Formula grants are given based on pre-set formulas. Before the year begins, Congress determines how much will be appropriated to go to schools through these grants. Although most formula grants do require a state or school district to fill out a basic application, they are always noncompetitive. As long as a state or school district meets the predetermined formula, it will be awarded the grant. The grant size, however, may fluctuate based again on the formula: a state or school district’s size or population of students living in poverty will usually cause fluctuations in how much is awarded.
Discretionary Grants
Discretionary grants, however, are given out based on predetermined criteria and are competitive—not every state or district that applies will receive the grant. Applications are typically much more involved than applications for formula grants. States or districts apply for grants they believe match based on published descriptions, and then a panel of judges awards the grants to the states or school districts they believe best match the description and awards the appropriate amount to the winners.
Educational Grant Sources
Most educational grants come through the Office of Elementary and Secondary Education (OESE) in some form or fashion. The OESE is a branch of the United States Department of Education and exists “to empower States, districts, and other organizations to meet the diverse needs of every student by providing leadership, technical assistance, and financial support.”
OESE typically sends funding to State Education Agencies (SEAs), who then pass the funding on to Local Education Agencies (LEAs)—that is, local school districts. Depending on the funds given, OESA sometimes requires that the money is given as formula grants, and other times allows SEAs to decide whether the funds will be given as formula or discretionary grants.
For a breakdown and comparison of each type of educational grant, visit the US Department of Education's Grants Overview page.
ESSA Funding for Schools
One of OESE’s primary responsibilities is to award each state its appropriate ESSA funding. Congress passed the Every Student Succeeds Act (ESSA) in 2015, replacing No Child Left Behind (NCLB). It is organized into nine different sections, called “titles.” The majority of these titles provide funding (typically through formula grants) to the states and school districts that comply with the requirements of the title. Three of the titles that are most likely to provide the funding necessary for improving a school district’s edtech are listed here and outlined in further detail below:
Title I: Improving Basic Programs Operated by State and Local Educational Agencies
- Title I: The purpose of Title I funding is to improve basic program operations across educational agencies, and as such, frequently provides school districts with one of their best sources of funding to upgrade their educational technology. Each state is required to designate 7% of its Title I monies to interventions and technical assistance, including instructional services like online software.
Title I funds must be used to “support evidence-based educational strategies that close the achievement gap and enable the students to meet the state’s challenging academic standards.” Additionally, Part A requires that funds are used to “involve parents/guardians of participating public and private school children as active partners in their children's education at school through open, meaningful communication, training, and, as appropriate, inclusion in decision-making processes.” As educational technologies typically enhance a school district’s ability to meet both of these requirements, Title I funding is often used to purchase online ed tech software.
For more information on Title 1 funding, read: Title 1 Explained: 5 Things Educators Need to Understand About Federal Money for Students in Poverty
Title IV: 21st Century Schools
- Title IV: The original purpose of Title IV funding was to bring schools into the 21st Century through improved use of digital literacy. As time has gone by, provisions have been added to ensure school districts have the funds needed to ensure that all students not only have access to the technology required for excellent education but that technology is used to improve academic achievement.
Part A of Title IV focuses on student support and academic enrichment grants that additionally allow for partnerships with businesses that will increase either access to technology or enable technology to be used to improve academic achievement. Moreover, it stipulates that a portion of funding should be used for professional development that allows for using data and technology to improve instruction.
However, it is important to note that while Part A of Title IV does allow for the purchase of technology infrastructure, including devices, equipment, and software applications, no more than 15% of allocated funds can be used towards these purchases.
Title IV not only contains two grant programs but an additional discretionary grant program and various assistance programs, as well, some of which may be applicable to educational technology that increases educators’ ability to capture and act on educational data to improve learner outcomes.
For more information about Title IV funding, visit the Every Student Succeeds Act comprehensive guide.
Title V: State Innovation and Local Flexibility
- Title V: Title V exists to ensure that school districts with small populations or in low-density areas (rural schools) have access to funds that they may otherwise miss out on due to not having the staff or resources needed to apply for grants. However, what is significant about Title V is that the funds awarded to these rural schools can be used for the activities and resources approved under Title I Section A, Title II Section A, Title III Section A, and Title IV Section A. So a small, rural school may have more success purchasing online educational software through awarded Title V funds.
How Does Otus Fit?
Schools today face mounting pressure to do more with limited resources—while also ensuring equity, improving outcomes, and meeting accountability requirements. Federal and state funding streams were designed to help districts address these challenges, and many explicitly allow for investments in educational technology and data systems.
Otus provides an all-in-one platform that helps districts maximize the impact of these funds by:
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Making Data Actionable: Centralizing classroom, local, and state assessments alongside third-party data so educators and leaders can quickly identify needs, track growth, and measure program effectiveness.
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Driving Equity and Personalization: Using data-driven insights to support evidence-based interventions, differentiate instruction, and ensure every student has access to the support they need to succeed.
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Strengthening Collaboration: Giving teachers, administrators, and families shared visibility into progress toward standards, goals, and district priorities—all in one place.
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Supporting Future-Ready Learning: Offering tools for personalized plans, portfolios, and progress monitoring that align with initiatives like Portrait of a Graduate and college- and career-readiness frameworks.
With Otus, districts can show clear alignment between their funding priorities and student outcomes. Whether the goal is to close achievement gaps, enhance digital learning, or provide evidence of program effectiveness, Otus equips schools with the platform needed to rise to today’s challenges and prepare for tomorrow.
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