Which term describes funds allocated to address differences in student needs, such as for English learners or low-income students?

• A. Horizontal equity
• B. Vertical equity
• C. Entitlements
• D. Categorical aid

Answer: (B)

This question is about how funds are distributed to reflect different student needs. Vertical equity means providing more resources to students who require more support—such as English learners or low-income students—so that differences in needs don’t translate into unequal opportunities or outcomes. By weighting funding toward those with greater needs, the aim is to level the playing field across the student population.

Horizontal equity would give the same amount to every student, which can leave high-need students underserved. Entitlements are about guaranteed funding levels schools receive, not about adjusting by student need. Categorical aid targets specific programs or purposes, but doesn’t by itself describe distributing funds based on varying needs across the whole student body. Hence, the term that best fits is vertical equity.