In this paper, we study the nonlocal linear bending behavior of functionally graded beams subjected to distributed loads. A finite element formulation for an improved first-order shear deformation theory for beams with five independent variables is proposed. The formulation takes into consideration 3D constitutive equations. Eringen's nonlocal differential model is used to rewrite the nonlocal stress resultants in terms of displacements. The finite element formulation is derived by means of the principle of virtual work. High-order nodal-spectral interpolation functions were utilized to approximate the field variables, which minimizes the locking problem. Numerical results and comparisons of the present formulation with those found in the literature for typical benchmark problems involving nonlocal beams are found to be satisfactory and show the validity of the developed finite element model.