	Introduction

The Rural Education Achievement Program (REAP) is authorized by Part B of Title V of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA, P.L. 114-95 ) in 2015. To compensate for the challenges facing rural schools, REAP awards two types of formula grants. The Small, Rural School Achievement (SRSA) program provides funds to rural local educational agencies (LEAs) that serve small numbers of students. The Rural and Low-Income School (RLIS) program provides funds to rural LEAs that serve high concentrations of low-income students, regardless of the LEA's size. Funds appropriated for REAP are divided equally between the SRSA and RLIS programs. The ESSA reauthorization of the REAP statute made major changes to the program by
1. updating the locale codes used for determining the eligibility of LEAs, 2. clarifying that LEAs within educational service agencies are to be considered for SRSA eligibility, 3. extending to RLIS the alternative state certification option for meeting the rural criterion that already existed for SRSA, and 4. giving LEAs the option to choose which program to receive funds under if eligible for both SRSA and RLIS. ESSA provided new authority allowing an LEA eligible under both the SRSA and RLIS programs to choose the program from which they prefer to receive funds. In FY2016, the average per pupil grant amount was $78 for SRSA, compared to $23 for RLIS.
The Rural Education Achievement Program (REAP) is authorized by Part B of Title V of the Elementary and Secondary Education Act of 1965, as amended by the Every Student Succeeds Act (ESSA, P.L. 114-95) in 2015. To compensate for the challenges facing rural schools, REAP awards two types of formula grants. The Small, Rural School Achievement (SRSA) program provides funds to rural local educational agencies (LEAs) that serve small numbers of students. The Rural and Low-Income School (RLIS) program provides funds to rural LEAs that serve high concentrations of low-income students, regardless of the LEA's size.
The ESSA reauthorization of the REAP statute made several major changes to the way funds are allocated to rural LEAs. Most notably, ESSA amended the scheme used to identify rural LEAs that may be eligible for REAP funds and gave LEAs the option to choose which program to receive funds under if eligible for both SRSA and RLIS.
REAP funds are divided equally between the SRSA and RLIS programs at the national level, but at the local level, award amounts to LEAs under each program vary widely. In FY2016, the average per pupil grant amount was $77 for SRSA awards, compared to $22 for RLIS awards. Given that final award amounts under each program depend greatly on the number of LEAs eligible for funds, the new option to choose the program from which to receive funds may raise important implementation issues.
This report provides a detailed description of eligibility rules and formula allocation procedures for SRSA and RLIS and discusses issues that may arise as ESSA amendments are implemented.