To amend the Impact Aid program under the Elementary and Secondary Education Act of 1965 to improve the distribution of school construction payments to better meet the needs of military and Indian land school districts.

Summary: Amends the Elementary and Secondary Education Act of 1965 to revise Impact Aid program requirements for distribution of school construction payments, and of school facility emergency and modernization grants, to local educational agencies (LEAs) impacted by military dependent children or by children residing on Indian lands.

Makes LEAs which were eligible for Impact Aid for the preceding fiscal year, and experience an overall increase in student enrollment, eligible for school facility emergency and modernization grants if at least 250 extra children are, or at least 10% of such increase is, the direct result of: (1) base realignment and closure or global rebasing; (2) force structure changes or relocations; or (3) an action initiated by the Secretary of the Interior or other federal agency.

SECTION 1. IMPROVED DISTRIBUTION OF CONSTRUCTION PAYMENTS.

    
            Section 8007(a) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7707(a)) is amended--
            (1) in paragraph (1), by striking ``40 percent'' and 
        inserting ``80 percent'';
            (2) in subparagraphs (A) and (B) of paragraph (2), by 
        striking ``50 percent'' each place it appears and inserting 
        ``40 percent'';
            (3) in paragraph (2) by adding at the end the following new 
        subparagraphs:
                    ``(C) The agency is eligible under section 
                8003(b)(2) or is receiving a basic support payment 
                under circumstances described in section 
                8003(b)(2)(B)(ii).
                    ``(D) The agency is eligible under section 
                8003(a)(2)(C).''; and
            (4) by striking paragraph (3) and inserting the following:
            ``(3) Amount of payments.--The amount of a payment to each 
        local educational agency described in this subsection for a 
        fiscal year shall be--
                    ``(A) not less than the greater of the amount 
                appropriated as provided under paragraph (1) for such 
                fiscal year; divided by--
                            ``(i) the number of children determined 
                        under subparagraphs (B), (C), and (D)(i) of 
                        section 8003(a)(1) who were in average daily 
                        attendance for all local educational agencies 
                        described in paragraph (2), including the 
                        number of children attending a school facility 
                        described in section 8008(a) if the Secretary 
                        does not provide assistance for the school 
                        facility under that section for the fiscal 
                        year; multiplied by
                            ``(ii) the number of children determined 
                        for such agency;
                    ``(B) not less than $25,000, except that this 
                subparagraph shall not apply if the amount available to 
                carry out paragraph (1) for such fiscal year is less 
                than $32,000,000; and
                    ``(C) not more than $3,000,000.''.

SEC. 2. COMPETITIVE EMERGENCY AND MODERNIZATION GRANTS.

    Section 8007(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7707(b)) is amended--
            (1) in paragraph (1) by striking ``60 percent'' and 
        inserting ``20 percent'';
            (2) in paragraph (3)(A) by inserting after ``an emergency 
        grant under paragraph (2)(A)'' the following: ``if the agency 
        is covered by paragraph (7), or''.
            (3) in paragraph (3)(C)(i)(I) by striking ``the agency 
        meets at least one'' and all that follows, and inserting ``the 
        number of children determined under section 8003(a)(1)(C) for 
        the agency for the preceding school year constituted at least 
        40 percent of the total student enrollment in the schools of 
        the agency during the preceding school year.'';
            (4) by striking paragraph (3)(D)(ii)(II) and inserting the 
        following:
                                    ``(II) The number of children 
                                determined under section 8003(a)(1)(C) 
                                for the school for the preceding school 
                                year constituted at least 40 percent of 
                                the total student enrollment in the 
                                school during the preceding school 
                                year.'';
            (5) in paragraph (4)(C) by striking ``(B), (C), and (D)'' 
        and inserting ``and (C)'';
            (6) by redesignating paragraph (7) as paragraph (8); and
            (7) by inserting after paragraph (6) the following:
            ``(7) Special rule.--Notwithstanding paragraph (3)(C)(i)(I) 
        and (3)(D)(ii)(II), a local educational agency is eligible to 
        receive a grant under this subsection not to exceed $3,000,000 
        in any one fiscal year if such agency--
                    ``(A) was eligible to receive a payment under 
                section 8003 for the fiscal year prior to the year for 
                which the application is made; and
                    ``(B) has had an overall increase in enrollment--
                            ``(i) during the period between the end of 
                        the school year preceding the fiscal year for 
                        which the application is made and the beginning 
                        of the school year immediately preceding that 
                        school year;
                            ``(ii) of which not less than 250, or not 
                        less than 10 percent (whichever is lower), are 
                        children described in--
                                    ``(I) subparagraphs (A), (B), (C), 
                                or (D) of section 8003(a)(1); or
                                    ``(II) subparagraphs (F) or (G) of 
                                section 8003(a)(1), but only to the 
                                extent such children are civilian 
                                dependents of employees of the 
                                Department of Defense; and
                            ``(iii) that is the direct result of one or 
                        more of the following:
                                    ``(I) Base realignment and closure 
                                or global rebasing, as determined by 
                                the Secretary of Defense.
                                    ``(II) Force structure changes or 
                                force relocations.
                                    ``(III) An action initiated by the 
                                Secretary of Interior or other federal 
                                agency.''.