School districts shall, at a minimum, use the funds to provide activities and materials designed to encourage children's self-esteem, provide role modeling. and mentoring techniques in social competence and social skills, and discourage inappropriate drug use. Additionally, school districts may use the funding for either or both of the following purposes:
- To reduce K-3 class size in basic skills instruction to the state goal of 17 students for every one teacher
- To improve instruction in the basics. especially reading
For more information on the allowed and disallowed uses of categorical funding refer to Iowa Administrative Code Chapter 281--98.