Impact Aid

To provide financial assistance to local educational agencies (LEAs) where affected by Federal activities, i.e., where the tax base of a district is reduced through the Federal acquisition of real property (Section 7002, ESEA), and where the presence of certain children living on Federal property places a financial burden on the LEAs that educate them (Sections 7003 and 7007, ESEA).

Local educational agencies that provide free public elementary or secondary education may apply. Under Section 7002, generally, assistance is provided to districts where an aggregate of 10 percent or more of the assessed valuation of all real property in the school district as of the time(s) of acquisition has been acquired by the Federal Government since 1938 and the district is not being substantially compensated by revenue from activities on the eligible Federal property. Under Section 7003, assistance is provided to districts where at least three percent or 400 of the total number of eligible federally connected children in average daily attendance (ADA) live on Federal property including Indian lands and/or have a parent who works on Federal property or is on active duty in the uniformed services. Under Section 7007(b), "heavily impacted" LEAs that enroll a high proportion (at least 40 percent) of federally connected children, or have little or no funding capacity, may be eligible for a competitive construction award.

Payments are computed on the basis of the statutory formula. Payments are prorated if appropriations are insufficient.