THE BASICS OF IMPACT AID

   
  • Impact Aid is the second oldest federal education program administered by the U.S. Department of Education, first passed in 1950.

 

  • The program was established to help make up the lost local tax base to school districts imposed upon by federal property.  People living on federal property do not pay local property tax.  People working on federal property, work for companies that do not pay local property tax.

 

  • The Impact Aid program is normally re-authorized every five years as part of the Elementary and Secondary Education Act (ESEA).  It was reauthorized in 2002 as part of the “No Child Left Behind” Act of 2001 (PL107-110).

 

  • There are basically four areas of impaction:  military, Indian lands, low rent housing, and federal ownership of land such as national parks, federal prisons, VA hospitals, etc.

 

  • It is the only education program that is not forward funded.  When Congress appropriates dollars annually in the fall, they then become available for distribution.  However continuing resolutions (CR) can put school districts in a financial bind waiting for the funds to arrive.

 

  • Money is directly wired from the Dept of Education to school district’s bank accounts, avoiding administrative costs at the state level.

 

  • There are no “strings attached” to the money and districts can use it in the areas they need it most as determined by the local Board of Education.
   
  • Federally connected children are recognized as these:

Military “a” – Children whose parent is active duty military and lives on base.

Military “b” – Children whose parent is active duty military and lives off-base.

Civilian “b” – Children whose parent works on federal property.

Low rent housing “b” childChildren whose parents reside in federal low rent housing, not including Section 8 housing. 
Each federal type is given a weighting to determine impact aid support.

 

  • There are also additional add-on dollars for military-connected students with current IEPs (children with disabilities).

 

  • For school districts with at least 50% military students, construction dollars are also appropriated.  Funds may be used for any type of capital improvement and there is no time limitation for expending the funds.

 

  • Basic support impact aid payments are made to districts that educate at least 400 federal students (ADA) or that have at least 3% ADA of federal students.

 

  • Civilian “b” children can only be calculated into a school’s payment if there are at least 1,000 in the district or they represent 10% or more of the district’s ADA.

 

  • To receive Impact Aid payments a district must survey the district to determine the number of federal students and then they must complete an application.  The application is sent to the U.S. Dept of Education by January 31st of each school year.
 
In 1991, Congress authorized the Dept of Defense (DOD) to supplement Impact Aid districts with additional dollars to help districts with significant concentrations of military students to help deal with the consequences of inadequate local funding, challenges related to base closures/realignments, and deteriorating facilities.  These dollars also have “no strings” attached and there is no time limit to spend them.

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