Assemblyman Avi Schnall has introduced two bills that would let school districts redirect unspent nonpublic school aid between related programs instead of returning the money to the State — a fix that could keep millions of dollars working for students each year.

Under current law, when a district does not spend the full amount of State aid it receives for a specific nonpublic school program, the leftover funds must be refunded to the State. The money cannot be moved to a related program where it might still be needed, even if students in that same district could benefit.

In FY 2024 alone, New Jersey districts refunded more than $21 million in unspent nonpublic school aid — about 14 percent of total entitlements. Lakewood, which serves the largest nonpublic school population in the state, refunded roughly $8.5 million that year, including $3.5 million in Auxiliary Aid and Transportation funds and $3 million in Handicapped Aid.

“This is money that was already approved, already appropriated, and already designated to support nonpublic school students,” said Assemblyman Schnall. “When a district has unspent funds in one program but unmet needs in another, it makes no sense to send that money back to Trenton. We should be letting districts use every dollar to serve the children it was meant for.”

Schnall’s legislation pairs together programs that serve overlapping needs and allows districts to shift unexpended aid between them: Nonpublic Textbook Aid and the Nonpublic Technology Initiative would be linked, recognizing that both programs support classroom learning materials. Nonpublic Nursing Services aid and Nonpublic Security Aid would also be linked, since both support student health and safety.

Any funds still unspent across both paired programs at year’s end would still be refunded to the State, preserving accountability while giving districts meaningful flexibility.

“Every school year, families and administrators identify real needs that go unfunded — a textbook shortage here, a security upgrade there,” Schnall said. “This bill is a commonsense fix that respects taxpayers and the students who depend on these services.”