(1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $1,250,000.00 for 2025-2026 for the purposes of this section. Except as otherwise provided in this section, if the operation of the special membership counting provisions under section 6(4)(dd) and the other membership counting provisions under section 6(4) result in a pupil being counted as more than 1.0 FTE in a fiscal year, the payment made for the pupil under sections 22a and 22b must not be based on more than 1.0 FTE for that pupil, and that portion of the FTE that exceeds 1.0 is paid under this section in an amount equal to that portion multiplied by the educating district's foundation allowance or per-pupil payment calculated under section 20. It is the intent of the legislature that, for 2026-2027, the allocation from the state school aid fund money appropriated in section 11 for the purposes described in this section will be $750,000.00.

    (2) Special education pupils funded under section 53a are not funded under this section.

    (3) If the funds allocated under this section are insufficient to fully fund the adjustments under subsection (1), the department shall prorate payments under this section on an equal per-pupil basis.

    (4) The department shall make payments to districts under this section according to the payment schedule under section 17b.