Funding guide for district leaders

How to fund Telo AI

Telo adds supplemental speaking practice for English Learners. Most districts fund it with Title III, and many can also use Title I, Title IV-A or state English Learner funds. Here is how each source works, what to watch for, and when the money arrives.

Four sources districts use to fund Telo

Title III is the usual starting point. Title I is far larger and often overlooked. Title IV-A and state funds can fill the gaps.

Title III

The federal grant dedicated to English Learners. Telo fits as supplemental technology for English language development.

How Title III works ↓

Title I

About 20 times larger than Title III. In a schoolwide program, it can fund tools that serve every student, English Learners included.

How Title I works ↓

Title IV-A

Funds the effective use of technology, with a cap on devices and software. It can also be transferred into Title I or Title III.

How Title IV-A works ↓

State EL funds

Many states add their own funding for English Learners, under their own rules.

See the state guides ↓

Title III: the grant built for English Learners

Title III, Part A is the federal grant for English Learners and immigrant students: $890 million nationally in fiscal year 2026, divided among districts mainly by their number of English Learners.

What the law allows

ESEA section 3115 lets districts use Title III to improve instruction for English Learners, including through “the acquisition or development of educational technology or instructional materials.”

Why Telo fits

Telo gives each English Learner extra one-on-one speaking practice on top of core ESL or bilingual instruction. That is supplemental English language development, which is what Title III is for.

The rule to respect

Supplement, not supplant. Title III cannot pay for services the district must already provide to English Learners under state or federal law. Present Telo as added practice, never as the core English Learner program.

Go deeper: What can Title III funds be used for? and Can Title III pay for robotics?

Title I: the larger grant most EL programs overlook

Title I, Part A supports schools with high shares of students from low-income families. At about $18.4 billion nationally in fiscal year 2026, it is roughly 20 times the size of Title III. Whether it can pay for Telo depends on the kind of Title I program the school runs.

Schoolwide programs

A school where at least 40% of students come from low-income families (or that has a state waiver) can run a schoolwide program and use Title I to upgrade instruction for the whole school. Telo can be funded this way when the school’s needs assessment and schoolwide plan support it.

Targeted assistance schools

Other Title I schools serve only the students identified as most at risk of not meeting state standards. English Learners are eligible on the same basis as other students, so Telo can serve the English Learners selected for Title I services.

Title I and Title III together

The two grants can share the cost of one rollout, for example Title III in English Learner classrooms and Title I in schoolwide campuses. Keep a clear record of which grant pays for which robots and licenses.

Title I spending runs through your federal programs director and each school’s plan, so bring them in early, ideally while schools are building next year’s plan. More on how the two grants differ: Title I vs Title III.

Title IV-A: useful, with one limit to know

Title IV, Part A (Student Support and Academic Enrichment) includes a technology strand. It has a cap that matters for hardware, and a flexibility that matters more.

Effective use of technology

Districts can spend part of their Title IV-A funds on the effective use of technology to improve student learning.

The 15% cap

No more than 15% of the funds a district spends on that technology strand can go to technology infrastructure. State guidance counts devices and software licenses as infrastructure, which limits what Title IV-A alone can put toward robots.

Transfer into Title I or Title III

A district can transfer all or part of its Title IV-A and Title II-A funds into Title I or Title III. Transferred funds follow the rules of the program they move to, so the 15% cap no longer applies. The district notifies its state at least 30 days before the transfer.

State English Learner funds

Many states fund English Learners on top of the federal grants, through their school finance formula or dedicated programs, each with its own rules. Our state guides explain how it works.

State guide

Texas

Title III and state funding for Emergent Bilingual programs.

Read the guide →

State guide

California

LCFF supplemental and concentration grants, and how they work with Title III.

Read the guide →

State guide

New York

Title III and New York State aid for English Language Learners.

Read the guide →

State guide

Florida

Title III and state support for ESOL programs.

Read the guide →

When the money arrives

Federal funds follow the federal calendar, then pass through your state and your district’s own budget year. Knowing the dates helps you time a purchase.

July 1

The U.S. Department of Education normally makes Title III and Title IV-A funds available on July 1, together with a first share of Title I, Part A. Dates can slip: in 2025, Title III and Title IV-A funds were only released at the end of July.

October 1

The rest of the year’s Title I, Part A funds arrive on October 1. Your state passes funds on once it approves your district’s application, and your district’s fiscal year (July to June in many states, October to September in Alabama) decides when they show up in your budget.

Up to 27 months to spend

Federal rules give each year’s funds up to 27 months, from July 1 to September 30 two years later, though your state may set earlier deadlines. Districts receiving $50,000 or more in Title I can carry over at most 15% of it, so year-end balances are a common reason to buy mid-year.

Which fund fits your situation

A quick way to find where to start. Your federal programs office makes the final call.

Your situation Where to look first
Telo will serve English Learners only Title III
The school runs a Title I schoolwide program Title I, through the schoolwide plan
The school is a Title I targeted assistance school Title I, for the English Learners selected for Title I services
Your Title III allocation is too small for the rollout Title I alongside Title III, or a Title IV-A transfer into Title III
Your Title III subgrant would be under $10,000 A Title III consortium with other districts, through your state
You are buying in the middle of the year This year’s remaining balances, or carryover before it lapses
Your state funds English Learners on its own State English Learner funds

Once the funding is set, buying is simple

Telo is an awarded TIPS vendor, so any of the 7,000+ TIPS member districts and schools can buy it without running a separate RFP.

TIPS cooperative

Awarded TIPS vendor, open to 7,000+ member districts and schools nationwide.

Regional cooperatives

Also approved through Region 19 Allied States Cooperative, Region 7 ESC and Region 18 ESC, plus direct contracts with 29 ISDs.

Paperwork ready

A formal quote, our W-9, COI, DPA and MSA, and a funding-source justification letter mapped to the grant you plan to use.

Funding FAQ

Can Title I funds pay for Telo?+

Often, yes. In a Title I schoolwide program, Telo can be funded when the school’s needs assessment and schoolwide plan include it. In a targeted assistance school, it can serve the students selected for Title I services, English Learners included. Check with your federal programs director first.

Is Telo an allowable Title III expense?+

Telo is supplemental speaking practice for English Learners, and Title III explicitly allows educational technology that improves English Learner instruction. It must add to the core English Learner program, not replace it.

Can we combine Title I and Title III for one rollout?+

Yes, as long as each grant’s share is documented and spent under its own rules. One way to split it: Title III for English Learner classrooms, Title I in schoolwide campuses.

Can Title IV-A pay for Telo robots?+

In part. Title IV-A can fund the effective use of technology, but no more than 15% of that technology spending can go to devices, software and other infrastructure. Transferring Title IV-A funds into Title I or Title III removes that cap, because transferred funds follow the receiving program’s rules.

What does “supplement, not supplant” mean for Telo?+

Federal funds must add to what the district would provide anyway, not replace state and local spending. Telo fits when it adds speaking practice on top of the instruction English Learners already receive. Avoid presenting it as the district’s required English Learner program.

When is the best time to plan a Telo purchase?+

Ideally while your schools build next year’s plans and budgets, so Telo is written into the Title I schoolwide plan or the Title III application. A mid-year purchase works too, using this year’s remaining balances or carryover.

Do you provide a funding justification letter?+

Yes. Tell us which grant you plan to use and we’ll send a letter mapping Telo to its allowable uses, along with the quote and our vendor documents. Email schools@mytelo.ai.

This page is general information about federal and state funding rules, not legal or compliance advice. Allowable uses depend on your state’s rules and your district’s plans: confirm with your federal programs office or your state education agency.

Sources: Committee for Education Funding, FY 2026 funding table; ESEA sections 1114, 1115, 1127, 3115 and 4109; U.S. Department of Education, transferability letter (May 19, 2026); TEA, Title IV-A technology infrastructure guidance.

Not sure which fund fits?

Tell us your district and the grant you have in mind. We’ll map Telo to it and send a funding justification letter.