Allocating funds according to legitimate educational needs such as low-income students or students with limited English proficiency is called _____.

• A. Horizontal equity
• B. Vertical equity
• C. Needs-based funding
• D. Outcome equity

Answer: (B)

Allocating funds according to legitimate educational needs is vertical equity. The idea is to provide more resources to students who face greater challenges—such as those from low-income backgrounds or with limited English proficiency—so that opportunities and outcomes become more comparable across groups. Horizontal equity would give the same amount to every student regardless of need, which doesn’t address disparities. Needs-based funding describes funding driven by need, but vertical equity specifically captures the principle of adjusting allocations to equalize opportunities by varying the support based on need.