Title I of the Elementary and Secondary Education Act (ESEA) is the single largest federal investment in K-12 schools, making it a key tool for driving opportunity and closing the achievement gap. Title I provides financial assistance to schools based on the number of low-income students they enroll. Schools receiving the grants are required to comply with federal non-discrimination statutes, theoretically incentivizing equity in schools and districts across the country. The precise amount of Title I funds a school receives per low-income student depends on several factors. Two key factors are district size and the level of concentrated poverty in the district and school. While well intentioned, these and other more complicated factors in Title I's funding formulas can disincentivize innovative interdistrict programs that promote racial and economic integration. In short, Title I allocations can shrink as districts reduce their overall levels of school poverty. These formulas may also discourage districts from taking steps to integrate schools internally, within the district. This brief urges Congress to change the formula, stating that Title I's funding formulas provide incentives for school districts to maintain high poverty levels and no incentive to deconcentrate poverty or foster voluntary transfer or assignment policies with surrounding districts.