Context is everything. Are the bibles being distributed to be studied in a literature course, or a comparative mythology course, or a world religions course, or are they being distributed as truth from the Christian God and offered as an encouragement to personally follow Christianity? Obviously in this matter the purpose is recruitment.
In Ontario, Canada, most schools are public non-sectarian, in which individual school boards may prohibit or may permit the handing out of bibles, but if they do permit it, they must permit all creeds (including atheism), and the kids must not be pressured into it.
In Ontario there are also a great many Roman Catholic public schools, in which Christianity is core, and the bible is taught as truth. For example, when teaching the Miracle of Fatima to kindergarten students, some of whom asked if it was true, I was required to tell them that it was true.
In Ontario there are many private schools, which in addition to the non-sectarian provincial curriculum, are free to include as much religious education and practice of whatever sort they wish. For example, I attended a private school that included attending church every day in addition to formal Christian religion courses a couple of times a week, with Gideon’s bibles being handed out in grade five.
The only significant controversy arises when public non-sectarian schools ban religious proselytizing, which ruffles the feathers of bible thumpers. Quite a few major school board have instituted such bans. What is worth noting, however, is that much of our population (two thirds to three quarter’s of Ontario’s and a quarter of Canada’s) is in the Golden Horseshoe conurbation (Toronto, Hamilton, etc.), which is marvelously cosmopolitan. For example, in the City of Toronto, almost half of the population’s mother tongue is something other than English or French, and there are over 180 languages and dialects spoken. In this context, Christian proselytizers are not relevant to most people’s lives.
Christianity is a very big thing in the USA. It isn’t so to anywhere near the same degree in Canada. When it comes to religion and its involvement in education, healthcare and politics, in Canada it is more live and let live, rather than out-shout each other, although of course we too have our occasional moments of insanity. Because it is more live and let live, we don’t have to fight as much to keep others from forcing their creeds upon us.