The Smaller Class Sizes for Students and Educators Act of 2026 would provide federal grants to local school districts to reduce class sizes in kindergarten through third grade, with a target maximum of 18 students per class. Grants would be awarded competitively for five-year periods, with priority given to school districts serving the highest percentages of low-income students, and would focus on schools with the greatest concentrations of economically disadvantaged pupils. School districts receiving grants must use at least 97 percent of funds directly for class size reduction through hiring qualified teachers, obtaining classroom space, and providing professional development, while limiting administrative costs to 3 percent. The bill authorizes $2 billion in funding for the first fiscal year following enactment, with additional funding available in subsequent years, and requires annual reporting on progress toward class size goals and student outcomes, including teacher satisfaction and retention data.