HB 276 modifies Texas’s public school finance formula by switching from average daily attendance (ADA) to average enrollment as the basis for state funding allocation. The bill amends Section 48.005 of the Education Code, defining “average enrollment” as the average number of students enrolled during the school year. It adjusts funding eligibility criteria across various school programs (e.g., prekindergarten, alternative education) to align with the new average enrollment metric instead of daily attendance counts. This shift aims to increase funding stability, particularly benefiting districts with inconsistent daily attendance rates. The act would take effect beginning with the 2026–2027 school year​.