NCLB OVERVIEW
Preliminary Overview of Programs and Changes Included in the No Child Left Behind Act of 2001
Archived Information

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Title VIII

    Impact Aid
    (Title VIII)

    Overview

    Reauthorizes the Impact Aid program, which provides financial assistance to local educational agencies (LEAs) affected by Federal activities. Impact Aid helps replace the lost local revenue that would otherwise be available to LEAs to finance the education of these students. Programs include: Basic Support Payments, Payments for Children with Disabilities, Facilities Maintenance, Payments for Federal Property, and Construction. With the exception of competitive Impact Aid Construction grants, the statutory language for Impact Aid generally remains unchanged from current law (it was reauthorized in 2000).

    Changes from Current Law

    Continues requirements to award Impact Aid Construction funds both by formula (40 percent) and competitively (60 percent), but changes the priority order for awarding competitive funds as follows:

    First, emergency grants for "heavily impacted" school districts and school districts with little or no bonding capacity that receive Impact Aid Construction formula grants.

    Second, emergency grants for:

    • school districts that (1) have at least 40 percent federally connected students residing on Indian lands or 40 percent federally connected military students; (2) are at 75 percent or more of their limit of bonded indebtedness; and (3) have an equalized assessed value of property per student that is below the State average; and

    • schools that (1) are not inside an LEA that would otherwise be eligible for an emergency Construction grant; (2) have at least 40 percent federally connected students residing on Indian lands or 40 percent federally connected military students; and (3) are inside an LEA that is at 75 percent or more of its limit of bonded indebtedness and has an equalized assessed value of property per student that is below the State average.

    Third, modernization grants for school districts that (1) receive any type of Impact Aid payment; (2) are either "heavily impacted" or have little or no bonding capacity; and (3) have school facility needs resulting from the presence of the Federal government.

    Fourth, modernization grants for:

    • school districts that either (1) have at least 40 percent federally connected students residing on Indian lands or 40 percent federally connected military students; (2) are at 75 percent or more of their limit of bonded indebtedness; and (3) have an equalized assessed value of property per student that is below the State average; or (1) receive an Impact Aid Payment for Federal Property; (2) are at 75 percent or more of their limit of bonded indebtedness; and (3) have an equalized assessed value of property per student that is below the State average.

    • schools that (1) are not inside an LEA that would otherwise be eligible for a modernization Construction grant; (2) have at least 40 percent federally connected students residing on Indian lands or 40 percent federally connected military students; and (3) are inside an LEA that is at 75 percent or more of its limit of bonded indebtedness and has an equalized assessed value of property per student that is below the State average.

    Other Changes - Earmarks an additional LEA, Annette Islands, Alaska, for eligibility for Basic Support Payments for Heavily Impacted LEAs based on unique characteristics of the LEA; moves an earmark for the Centennial, Pennsylvania LEA from Impact Aid Payments for Federal Property to the Fund for the Improvement of Education; and requires that the Secretary accept late grant applications for specified LEAs.

    Accountability

    • None.

    Allocation of Funds

    • Formula and competitive - With the exception of Facilities Maintenance and the competitive portion of Construction, all Impact Aid funds are awarded on a formula basis. The formula funds are distributed directly to LEAs using formulas that are all based, in part, on the number and type of federally connected students in LEAs.

    • Leveraging - Competitive Construction funds may not exceed 50 percent of the total cost of the project assisted.

    • Award limit - Competitive Construction awards to a single LEA may not exceed $4 million during any 4-year period.

    Set-Asides

    • While funds are not set aside solely for school districts that receive Basic Support Payments for Heavily Impacted LEAs, they are earmarked for eligibility and receive payments before any regular Basic Support Payments are made.


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Last Modified: 01/19/2005