The Smaller Class Sizes for Students and Educators Act of 2026 would authorize the federal government to award competitive grants to local school districts to reduce class sizes in kindergarten through third grade classrooms. The bill would prioritize funding for school districts serving the highest number of low-income students, with grants lasting five years. Districts would be required to reduce class sizes to no more than 18 students per class in their highest-poverty schools, hire qualified teachers, provide professional development, and use at least 97 percent of grant funds directly for class size reduction efforts, with the remaining 3 percent available for administrative costs. The legislation authorizes $2 billion in funding for the first fiscal year and any additional amounts needed in following years, while requiring annual reports to Congress on progress in reducing class sizes and improving student outcomes and teacher working conditions.