New legislation is being suggested to help improve First Nations student graduation rates and educational outcomes.

A First Nations Education Act is just one of the recommendations from the Standing Senate Committee on Aboriginal Peoples.

Committee member Senator Lillian Dyck says new funding formulas would be implemented to account for the remoteness of a community or to include culture and language in the curriculum.

The committee recommends the new Act be optional for First Nations communities, while recognizing the authority of on-reserve schools.