The Rural Education Achievement Program (REAP) is authorized by Part B of Title V of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA, P.L. 114-95) in 2015. Congress created this program to address the unique needs of rural schools that disadvantage them relative to non-rural schools. To compensate for the challenges facing rural schools, REAP awards two types of formula grants. The Small, Rural School Achievement (SRSA) program provides funds to rural local educational agencies (LEAs) that serve small numbers of students. The Rural and Low-Income School (RLIS) program provides funds to rural LEAs that serve high concentrations of low-income students, regardless of the LEA's size. Funds appropriated for REAP are divided equally between the SRSA and RLIS programs and LEAs may receive funds from only one of the two programs. The ESSA reauthorization of the REAP statute made major changes to the program by: (1) updating the locale codes used for determining the eligibility of LEAs; (2) clarifying that LEAs within educational service agencies are to be considered for SRSA eligibility; (3) extending to RLIS the alternative state certification option for meeting the rural criterion that already existed for SRSA; and (4) giving LEAs the option to choose which program to receive funds under if eligible for both SRSA and RLIS. This report discusses the challenges facing rural schools and the manner in which REAP attempts to address these challenges.