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Impact Aid Section 7003
Payments for Federally Connected Children


Current Section  Eligibility
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Eligibility

Section 7003 establishes several broad categories of federally connected school children who may generate payments for their school districts. Following are brief descriptions of the categories:

  • Child resides on federal property with a parent employed on federal property situated in whole or in part within the boundaries of the school district.
  • Child resides on federal property with a parent who is both an accredited official of a foreign government and a foreign military officer.
  • Child resides on federal property and has a parent on active duty in the uniformed services of the United States.
  • Child resides on eligible Indian lands (no employment requirement).
  • Child has a parent on active duty in the uniformed services of the United States.
  • Child has a parent who is both an accredited official of a foreign government and a foreign military officer.
  • Child resides in eligible low-rent housing.
  • Child resides on federal property.
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  • Child resides with a parent employed on federal property.
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For purposes of computing payments under section 7003, the statute refers to federally connected average daily attendance (ADA). By definition, the term "average daily attendance" means the aggregate days of attendance in a given reporting period divided by the number of days school was actually in session during that same period. Specific examples for determining ADA are cited in 34 CFR Sec. 222.37. Additional ADA information, including a list of states that no longer require the collection of ADA data, can be found under the heading "ADA-State Agreements."

Threshold Eligibility

To qualify for section 7003 funding, an LEA must meet one of the following threshold eligibility requirements:

  1. The LEA must be serving eligible federally connected children numbering at least 400 in ADA; or
  2. At least 3 percent of the total number of children in ADA must be such children.

Children with Disabilities

LEAs that serve federally connected children with disabilities may receive an additional payment to assist with the excess costs of providing educational services to these children. An LEA must provide services for all children with disabilities claimed on its application in accordance with the Individuals with Disabilities Education Act (IDEA).


7007a (Construction Payment)

This section authorizes payments for capital expenditure assistance to LEAs that receive a Basic Support Payment under section 7003 and that meet one of the following criteria:

  1. The number of children in average daily attendance in the schools of the LEA who reside on Indian lands equals at least 50 percent of the total student enrollment in the schools of the LEA.
  2. The number of children in average daily attendance in the schools of the LEA who have a parent on active duty in the uniformed services of the United States equals at least 50 percent of the total student enrollment in the schools of the LEA.
  3. The LEA receives a payment under section 7003(b)(2).

LEAs must use these funds for construction activities, which may include:

  1. preparing drawings and specifications for school facilities
  2. erecting, building, acquiring, altering, remodeling, repairing or extending school facilities
  3. inspecting and supervising the construction of school facilities
  4. debt services for construction activities


   
Last Modified: 09/21/2017