Indigenous Students Excel through Parity Act of 2026 (II)

The term Assistant Secretary means the Assistant Secretary for Indian Affairs.

The term Indian School Equalization Formula means the Indian School Equalization Formula described in subparts B and C of part 39 of title 25, Code of Federal Regulations (or successor regulations).

The term Indian School Equalization Program means the Indian School Equalization Program described in part 39 of title 25, Code of Federal Regulations (or successor regulations).

The term Indian Tribe means any Indian or Alaska Native Tribe, band, nation, pueblo, village, or other community included on the list published by the Secretary pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).

The term Secretary means the Secretary of the Interior.

Not later than 1 year after the date of enactment of this Act, and in accordance with paragraph (3), the Secretary, in coordination with the Assistant Secretary and the Director of the Bureau of Indian Education, shall update the Indian School Equalization Formula, including by completing the process of developing alternative methods for the equitable distribution of the Indian School Equalization Formula, with consideration given to the factors described in paragraph (2).

The factors referred to in paragraph (1), are the following:

(A) Ensuring that the Indian School Equalization Formula provides sufficient funding to adequately fund schools operated by the Bureau of Indian Education.

(B) Average State-by-State salaries for school teachers, principals, other leadership positions, and all school staff at schools not operated by the Bureau of Indian Education, with consideration given to matching the highest quartile of those salaries.

In updating the Indian School Equalization Formula under paragraph (1), the Secretary shall—

(A) ensure the updated Indian School Equalization Formula provides sufficient funding to fully support salaries for all employees at a rate commensurate with paragraph (2)(B);

(B) consider the weights or ratios related to—

(i) schools controlled by Indian Tribes;

(ii) schools with fewer than 100 students; and

(iii) schools located in rural areas; and

(C) ensure that Havasupai Elementary School is awarded an additional cost factor of 12.5 Weighted Student Unit (as defined in section 39.2 of title 25, Code of Federal Regulations (or successor regulations)).

The Secretary, in coordination with the Assistant Secretary and the Director of the Bureau of Indian Education, and in consultation with national organizations representing Indian Tribes and students attending Bureau of Indian Education schools, shall submit to Congress a report describing—

(1) the adequacy of the Indian School Equalization Formula and the Indian School Equalization Program in fulfilling the needs of Bureau of Indian Education schools and schools controlled by Indian Tribes; and

(2) recommendations for increasing or modifying factors to improve the Indian School Equalization Formula.

Subject to subsection (b), not later than the first fiscal year beginning after the date on which the Indian School Equalization Formula is updated under section 4(a), and every fiscal year thereafter, the Assistant Secretary shall ensure that the budget of the United States submitted by the President under section 1105 of title 31, United States Code, requests full funding for the operation and maintenance of the Indian School Equalization Program.

In determining the amount necessary for full funding for operation and maintenance for the Indian School Equalization Program under subsection (a), the Assistant Secretary shall—

(1) use the Indian School Equalization Formula updated under section 4(a);

(2) consider and consult the most recent annual report to Congress of the National Advisory Council on Indian Education;

(3) adjust the amount as necessary to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor; and

(4) include, as fixed costs—

(A) funding increases to match the salary schedule of the Department of Defense Education Activity; and

(B) pay increases for all non-teacher employees at schools controlled by Indian Tribes at the same rate as pay increases for Federal employees, as required under—

(i) the Indian Self-Determination and Education Act (25 U.S.C. 5301 et seq.); and

(ii) the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et seq.).