Department of Education

IMPACT AID

Fiscal Year 2020 Budget Request

CONTENTS

Page

Appropriations Language ........................................................................................................B-1

Analysis of Language Provisions and Changes.......................................................................B-2

Appropriation, Adjustments and Transfers ..............................................................................B-3

Summary of Changes .............................................................................................................B-4

Authorizing Legislation............................................................................................................B-5

Appropriations History.............................................................................................................B-6

Summary of Request ..............................................................................................................B-7

Activities:

Payments for federally connected children: ........................................................................B-9

Basic support payments ..............................................................................................B-9

Payments for children with disabilities .......................................................................B-20

Facilities maintenance ......................................................................................................B-24

Construction .....................................................................................................................B-26

Payments for Federal property .........................................................................................B-31

StateTables*

State tables reflecting final 2018 allocations and 2019 and 2020 estimates are posted on the 

Department’s webpage at: https://www2.ed.gov/about/overview/budget/statetables/index.html
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Appropriation s L angu age

For carrying out programs of financial assistance to federally affected schools authorized by 

title VII of the ESEA, [$1,446,112,000] $1,371,799,000, of which $1,301,242,000 shall be for 

basic support payments under section 7003(b), $48,316,000 shall be for payments for children 

with disabilities under section 7003(d),1 $17,406,000, to remain available for obligation through 

September 30, [2020] 2021, shall be for construction under section 7007(b),

2 [$74,313,000 shall 

be for Federal property payments under section 7002,] 3 and $4,835,000, to remain available 

until expended, shall be for facilities maintenance under section 7008.

4 Provided, That for 

purposes of computing the amount of a payment for an eligible local educational agency under 

section 7003(a) for school year [2018-2019] 2019-2020, children enrolled in a school of such 

agency that would otherwise be eligible for payment under section 7003(a)(1)(B) of such Act, 

but due to the deployment of both parents or legal guardians, or a parent or legal guardian 

having sole custody of such children, or due to the death of a military parent or legal guardian 

while on active duty (so long as such children reside on Federal property as described in section 

7003(a)(1)(B)), are no longer eligible under such section, shall be considered as eligible 

students under such section, provided such students remain in average daily attendance at a 

school in the same local educational agency they attended prior to their change in eligibility 

status.5 (Department of Education Appropriations Act, 2019.)

NOTE

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document, which follows the appropriation language.
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Analysis of Language Provisions and Changes

Language Provision Explanation

1 $1,371,799,000, of which $1,301,242,000 

shall be for basic support payments under 

section 7003(b), $48,316,000 shall be for 

payments for children with disabilities under 

section 7003(d)

This language specifies funding levels for 

basic support payments and payments for 

children with disabilities. 

2 $17,406,000, to remain available for 

obligation through September 30, [2020]

2021, shall be for construction under section

7007(b)

This language specifies the amount for 

construction, makes it available only for 

competitive awards, and makes the funds 

available for 2 years, to provide sufficient 

time to hold the competition.

3 [$74,313,000 shall be for Federal property 

payments under section 7002,...]

This language, which specifies the amount 

for Federal property payments, is deleted 

because the Administration is not requesting 

funding for the program in fiscal year 2020.

4 $4,835,000, to remain available until 

expended, shall be for facilities maintenance 

under section 7008:

This language provides funds for the 

maintenance and repair of federally owned 

school facilities on a “no-year” basis because 

these activities typically require several years 

to initiate and complete.

5 Provided, That for purposes of computing 

the amount of a payment for an eligible local 

educational agency under section 7003(a) for 

school year [2018-2019] 2019-2020, children 

enrolled in a school of such agency that 

would otherwise be eligible for payment 

under section 7003(a)(1)(B) of such Act, but 

due to the deployment of both parents or 

legal guardians, or a parent or legal guardian 

having sole custody of such children, or due 

to the death of a military parent or legal 

guardian while on active duty (so long as 

such children reside on Federal property as 

described in section 7003(a)(1)(B)), are no 

longer eligible under such section, shall be 

considered as eligible students under such 

section, provided such students remain in 

average daily attendance at a school in the 

same local educational agency they attended 

prior to their change in eligibility status.

This language provides continued eligibility 

for students affected by the deployment or 

death of their military parent so long as the 

children attend school in the same LEA they 

attended prior to the parent’s death or 

deployment.
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Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2018 2019 2020

Discretionary:

Discretionar y Appropriation................................................. $1,414,112 $1,446,112 $1,371,799

Total, discretionary appropriation............ 1,414,112 1,446,112 1,371,799
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Summary of Changes

(dollars in thousands)

2019......................................................................................... $1,446,112

2020......................................................................................... 1,371,799

Net change ....................................................... -74,313

Decreases: 2019 base

Change

from base

Program:

Eliminate funding for Payments for Federal Property, 

which are payments made without regard to the 

presence of federally connected children. $74,313 -$74,313

Net change -74,313
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B-5

Authorizing Legislation

(dollars in thousands)

Activity

2019

Authorized

footnote

2019

Estimate

footnote

2020

Authorized

footnote

2020

Request

footnote

Payments for federally connected children:

ents for federall y connected childr en:Basic support payments (ESEA-VII-7003(b) and (e))............ $1,151,233 $1,301,242 $1,240,573 $1,301,242

ents for federall y connected childr en:Payments for children with disabilities (ESEA-VII-7003(d))... 48,316 48,316 52,065 48,316

Facilities maintenance: (ESEA-VII-7008) ................................... 4,835 4,835 5,210 4,835

Construction (ESEA-VII-7007) ................................................... 17,406117,406 18,757117,406

Payments for Federal property (ESEA-VII-7002)........................ 66,813 74,313 71,998 0

Total definite authorization.................................................... 1,288,603 1,388,603

Total annual appropriation .................................................... 1,446,112 1,371,799

 

1 The statute provides that 40 percent of the funds appropriated for Construction under section 7007 shall be used to make formula payments 

under section 7007(a) and 60 percent shall be used to make competitive awards under section 7007(b).
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Appropriations History

(dollars in thousands)

Year

Budget 

Estimate 

to Congress

House 

Allowance Footnote

Senate 

Allowance Footnote Appropriation

2011 $1,276,183 $1,276,1831 $1,296,183 2 $1,273,6313

2012 1,276,183 1,308,6314 1,273,6314 1,291,186

2013 1,224,239 1,291,1865 1,291,1865 1,223,649

2014 1,224,239 N/A6 1,290,9452 1,288,603

2015 1,221,790 N/A6 1,288,6037 1,288,603

2016 1,288,603 1,298,6038 1,288,6038 1,305,603

2017 1,305,603 1,315,6039 1,328,6039 1,328,6039

2018 1,236,435 1,333,60310 1,340,11210 1,414,11210

2019 1,259,790 1,466,11211 1,439,11211 1,446,11211

2020 1,371,799

 1 The level for the House allowance reflects the House-passed full-year continuing resolution. 2 The level for the Senate allowance reflects Committee action only. 3 The level for appropriation reflects the Department of Defense and Full-Year Continuing Appropriations Act, 2011 

(P.L. 112-110). 4 The level for the House allowance reflects an introduced bill; the level for the Senate allowance reflects Senate 

Committee action only. 5 The level for the House and Senate allowances reflect action on the regular annual 2013 appropriations bill, which 

proceeded in the 112th Congress only through the House Subcommittee and the Senate Committee. 6 The House allowance is shown as N/A because there was no Subcommittee action. 7 The level for the Senate Allowance reflects Senate Subcommittee action only. 8 The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations bill, which 

proceeded in the 114th Congress only through the House Committee and Senate Committee. 9 The levels for the House and Senate allowance reflect Committee action on the regular annual 2017 appropriation 

bill; the Appropriation reflects the Consolidated Appropriations Act, 2017. 10 The level for the House allowance reflects floor action on the Omnibus appropriations bill; the Senate Allowance 

reflects Committee action on the regular annual 2018 appropriation bill; the Appropriation reflects the Consolidated 

Appropriations Act, 2018 (P.L. 115-141). 11 The levels for the House and Senate Allowance reflect Committee action on the regular annual 2019 

appropriations bill; the Appropriation reflects enactment of the Department of Defense and Labor, Health and Human 

Services, and Education Appropriations Act, 2019 (P.L. 115-245).
B-7

Click here for accessible version

Summary of Request

DEPARTMENT OF EDUCATION FISCAL YEAR 2020 PRESIDENT'S BUDGET

(in thousands of dollars)

Amount Percent

 1. Payments for federally connected children (section 7003):

(a) Basic support payments (section 7003(b)) D 1,270,242 1,301,242 1,301,242 0 0.00%

(b) Payments for children with disabilities (section 7003(d)) D 48,316 48,316 48,316 0 0.00%

Subtotal 1,318,558 1,349,558 1,349,558 0 0.00%

 2. Facilities maintenance (section 7008) D 4,835 4,835 4,835 0 0.00%

 3. Construction (section 7007) D 17,406 17,406 17,406 0 0.00%

 4. Payments for Federal property (section 7002) D 73,313 74,313 0 (74,313) -100.00%

D 1,414,112 1,446,112 1,371,799 (74,313) -5.14%

NOTES: D = discretionary program; M = mandatory program

Detail may not add to totals due to rounding. 

Impact Aid (ESEA VII)

Total 

Cat 

Code

2018 

Appropriation 

2019 

Appropriation

2020 

President's 

Budget

2020 President's Budget Compared 

to 2019 Appropriation
IMPACT AID

B-8

Summary of Request

The Impact Aid program provides financial assistance to school districts affected by Federal 

activities. The presence of certain children living on Federal property across the country can 

place a financial burden on the local educational agencies (LEAs) that educate them because 

such property is exempt from local property taxes, denying LEAs access to the primary source 

of revenue used by most communities to finance education. Impact Aid helps replace the lost 

local revenue that would otherwise be available to LEAs to pay for the education of these 

children.

The Administration requests $1.4 billion in fiscal year 2020 for Impact Aid programs, including:

• $1.3 billion for Basic Support Payments on behalf of federally connected children. These 

funds provide grants for both regular Basic Support Payments and Basic Support Payments 

for Heavily Impacted LEAs.

• $48.3 million for Payments for Children with Disabilities. These payments are made on 

behalf of federally connected children with disabilities in order to help eligible LEAs meet the 

mandate under the Individuals with Disabilities Education Act to provide a free appropriate 

public education to all children with disabilities.

• $4.8 million for Facilities Maintenance. The Department of Education owns and maintains 

nine school facilities that originally were built to enable LEAs and the Department of 

Defense to educate federally connected students. The request would support Department 

of Education efforts to make emergency repairs to the remaining school buildings and 

continue the process of transferring these schools to LEAs.

• $17.4 million for Construction payments to LEAs, with appropriations language that would 

require all funds to be awarded competitively. LEAs generally pay for most of their school 

construction costs using local, as opposed to State and Federal, resources and rely on 

property taxes to finance these costs. Competitive grants assist federally affected LEAs that 

do not have access to those local resources in making emergency repairs and renovations 

and modernizing schools.

No funds are requested for Payments for Federal Property. This authority provides payments 

to LEAs without regard to the presence of federally connected children and, therefore, does not 

necessarily support the provision of educational services for these children.
IMPACT AID

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Activities:

Payments for federally connected children:

Basic support payments

(Elementary and Secondary Education Act of 1965, as amended, Title VII, section 7003(b) 

and (e))

(dollars in thousands)

FY 2020 Authorization: $1,240,573

Budget Authority:

2019 2020 Change

$1,301,242 $1,301,242 0

PROGRAM DESCRIPTION

The Impact Aid Basic Support Payments program is authorized under the Elementary and 

Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act 

(ESSA) and the National Defense Authorization Act of 2017 (NDAA). 

Impact Aid Basic Support Payments compensate local educational agencies (LEAs) for the 

expense of educating federally connected children. In communities across the country, the 

presence of Federal activities can both increase the number of students and decrease the local 

property tax base, which is the major source of revenue for education in most LEAs. Basic 

Support Payments go into the general funds of these LEAs, which use them for such expenses 

as teacher salaries, computers, curricular materials, regular and special instruction programs, 

and utilities.

The Impact Aid statute authorizes Basic Support Payments to LEAs on behalf of the following 

categories of federally connected students:

A. students who live on Federal property with a parent employed on Federal property 

situated in whole or in part within the boundaries of the LEA, or with a parent who is a 

foreign military officer accredited by a foreign government;

B. students who live on Federal property and who have a parent on active duty in the 

uniformed services of the United States;

C. students who live on certain Indian lands;

D. students who do not live on Federal property but who have a parent on active duty in the 

uniformed services of the United States, or a parent who is a foreign military officer 

accredited by a foreign government;

E. students who reside in a low-rent housing project assisted under the United States 

Housing Act of 1937;
IMPACT AID

Basic support payments

B-10

F. students who live on Federal property but otherwise do not fit into any of the categories 

described above; and

G. students who do not reside on Federal property but who have a parent employed on 

Federal property situated in whole or in part in the same State as the LEA.

An LEA that claims students living on Indian lands under category (C) is required to consult with 

the parents and Tribes of these children concerning their education and to ensure that these 

children receive equal educational opportunities. The LEA must develop and file with the 

Department a set of Indian policies and procedures describing how it meets this requirement. 

Children living on Indian lands receive a weight of 1.25 per student in the Basic Support 

Payments formula, higher than the weights assigned to other categories of federally connected 

children. These children often are disadvantaged and live in isolated rural areas, factors that 

can result in increased costs to the school districts that serve them.

The law authorizes two different types of Basic Support Payments: Regular Basic Support 

Payments and Basic Support Payments for Heavily Impacted LEAs.

Regular Basic Support Payments (section 7003(b)(1))

An LEA is eligible for Basic Support Payments only if the total number of eligible federally 

connected students described above is at least 400 in average daily attendance or 3 percent of 

total average daily attendance. In order to receive payments on behalf of students in categories 

(F) and (G), an LEA must have at least 1,000 such students in average daily attendance, or the 

number of such students must equal or exceed 10 percent of the total average daily attendance 

in that LEA.

To determine the maximum payment an LEA may receive, the statute specifies weights for each 

category of federally connected students. The weighted student count is multiplied by the 

greatest of four local contribution rates (LCRs), which are intended to represent the local share 

of the cost of educating these students, to determine the LEA's maximum payment. The four 

LCR options are:

• one-half of the U.S. average per-pupil expenditure for education;

• one-half of the State per-pupil expenditure (SPPE);

• the LCR of comparable LEAs in the State; and

• the product of the SPPE and the local contribution percentage (the percentage of education 

expenditures that comes from the local level) in the State.

If appropriations are insufficient to make maximum payments in full, the formula reduces 

maximum payments by multiplying them by a percentage, called the Learning Opportunity 

Threshold (LOT) percentage, which is the sum of:

• the percentage of the LEA’s students in average daily attendance who are federally 

connected; and
IMPACT AID

Basic support payments

B-11

• the LEA’s maximum payment under the Basic Support Payments formula as a percentage 

of total current expenditures.

The sum of these two percentages may not exceed 100 percent. In addition to this maximum 

LOT, LEAs with an enrollment of fewer than 1,000 students and per-pupil expenditure below the 

State or national average receive a minimum LOT of 40 percent. A LOT percentage, when 

multiplied by a maximum payment, results in a LOT payment. If the appropriation is insufficient 

to provide LOT payments in full, the formula ratably reduces these payments. If the level of 

funding exceeds the level needed to fund LOT payments, but is insufficient to provide maximum 

payments to all LEAs, the formula ratably increases these payments above the LOT. However, 

these ratably increased LOT payments may not exceed an LEA’s maximum payment.

Basic Support Payments for Heavily Impacted LEAs (section 7003(b)(2))

The ESSA and NDAA made multiple changes to eligibility criteria and payment formulas for 

Basic Support Payments for Heavily Impacted LEAs, including eliminating the distinction 

between new and continuing LEAs. Under the amended ESEA, a “heavily impacted” LEA must 

fall into one of the following five categories:

• An LEA whose boundaries are the same as a Federal military installation or an LEA with no 

taxing authority and whose boundaries are the same as an island property designated by 

the Secretary of the Interior as being held in trust by the Federal Government;

• An LEA with a tax rate for general fund purposes that is 95 percent or greater of the average 

tax rate of comparable LEAs in the State, has a total number of eligible federally connected 

students described above that is at least 45 percent of the LEA’s total student enrollment, 

and has an average per-pupil expenditure that is (1) less than 125 percent of the SPPE if 

their total enrollment is at least 500 students or (2) less than 150 percent of the SPPE or the

average per-pupil expenditure of 3 or more comparable LEAs in the State if their total 

enrollment is less than 500;

• An LEA with a tax rate for general fund purposes that is 125 percent or greater of the 

average tax rate for comparable LEAs in that State and has a total number of eligible 

federally connected students described above that is at least 30 percent or at least 

20 percent for LEAs with at least 65 percent of non-federally connected children eligible to 

receive free or reduced price lunch;

• An LEA that received a payment for fiscal year 2015 under section 8003(b)(2)(E) (as was in 

effect in fiscal year 2015) and has a total student enrollment of at least 25,000 of which, at 

least 35 percent are federally connected students as described above and at least 3,500 are 

federally connected students who live on Federal property with a parent employed on 

Federal property situated in whole or in part within the boundaries of the LEA, live with a 

parent who is a foreign military officer accredited by a foreign government or who have a 

parent on active duty in the uniformed services of the United States or at least 7,000 are 

federally connected students who do not live on Federal property but who have a parent on 

active duty in the uniformed services of the United States, or a parent who is a foreign 

military officer accredited by a foreign government; or
IMPACT AID

Basic support payments

B-12

• An LEA with a tax rate for general fund purposes that is 95 percent or greater than the 

average tax rate of comparable LEAs in the State, was eligible for a heavily impacted 

payment in fiscal year 2001, has a total number of students counted under categories (F) 

and (G) greater than or equal to 35 percent of the LEA’s total student enrollment, and has a 

total enrollment of less than 350 students or has an average per-pupil expenditure that is 

less than 125 percent of the SPPE if total enrollment is at least 500 students or less than 

150 percent of the SPPE or the average per-pupil expenditure of 3 or more comparable 

LEAs in the State if total enrollment is less than 500.

An LEA that no longer meets the eligibility requirements above will continue to receive a heavily 

impacted payment in the first year the LEA falls out of eligibility. An LEA that falls out of eligibility 

due to falling below 95 percent of the average tax rate for general fund purposes for 

2 consecutive years will continue to receive a heavily impacted payment in the first 2 years of

ineligibility. An LEA must be eligible for 2 consecutive years before returning to heavily impacted 

status.

The “heavily impacted” maximum payments are based on a formula that is similar to the regular 

Basic Support Payments but that produces much larger payments for the eligible LEAs — the 

average per-pupil payment for Heavily Impacted districts is roughly $5,200, compared to $1,400

per-pupil for regular Impact Aid districts. Under the formula for heavily impacted LEAs, LEAs 

receive funds on behalf of students in categories (F) and (G), even if the number of those 

students falls below the Basic Support Payment thresholds of 1,000 students or 10 percent. 

Moreover, many recipients’ payments are based on substantially higher weights for federally 

connected students than apply to regular payments for the same types of students. Heavily 

impacted LEAs receive higher weights for their federally connected students based on the 

number of students in the LEA, the composition of the students within the LEA, or a combination 

of the two. For instance, federally connected students receive weights ranging from .05 to 1.35

per student under the regular Basic Support Payments formula, but they receive a weight of 

1.75 per student under the Basic Support Payments for Heavily Impacted LEAs formula, 

provided that the LEA has 100 or fewer federally connected students.

The local contribution rates (LCRs) are also much higher under the heavily impacted formula. 

They are the higher of:

• 80 percent of the U.S. average per-pupil expenditure for education; or

• 80 percent of the SPPE.

Heavily Impacted LEAs receive their maximum Heavily Impacted payments so long as funding 

is sufficient to cover the maximum payments for these LEAs and funds are sufficient to fully fund 

LOT payments for regular LEAs under section 7003(b)(1). If the appropriation is insufficient to 

provide LOT payments in full for regular LEAs under section 7003(b)(1), Basic Support 

Payments to heavily impacted LEAs are ratably reduced by the same percentage as payments 

to regular LEAs.

The Basic Support Payments program also includes hold-harmless language that applies to all 

eligible LEAs (regular and Heavily Impacted). An LEA with a payment that decreases by 
IMPACT AID

Basic support payments

B-13

20 percent or more from the previous year will receive 90 percent of the previous year’s 

payment. In the following year, the LEA will receive no less than 85 percent of the previous 

year’s payment. And in the third year following the determination of a 20 percent decrease in 

payment, the LEA will receive no less than 80 percent of the previous year’s payment.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2015 ................................................................................$1,151,233

2016 ..................................................................................1,168,233

2017 ..................................................................................1,189,233

2018 ..................................................................................1,270,242

2019 ..................................................................................1,301,242

FY 2020 BUDGET REQUEST

The Administration requests $1.3 billion for Basic Support Payments in fiscal year 2020, the 

same as the fiscal year 2019 appropriation. The request includes appropriations language that 

overrides the authorization level provided for this program in the Elementary and Secondary 

Education Act, as amended, and would retain appropriations language enacted in 2019 that 

provides continued eligibility for students affected by the deployment or death of their military 

parents, ensuring that the LEAs serving these children are not adversely affected by ongoing 

military action overseas.

The request recognizes that students counted under categories (A), (B) and (C)—primarily 

students who reside on Indian lands or who reside on and whose parents work on Federal 

property—represent a major financial expense for LEAs that educate them. Because federally 

owned land and Indian lands are exempt from local taxes, LEAs lack the ability to raise funds to 

educate these students using property taxes, which are the primary source of local revenue for 

public education costs.

Although students counted under categories (D), (E), (F), and (G)—primarily students who 

reside in low-rent housing and students who reside, or whose parents work, on private 

property—do not create the same financial burden for LEAs, it is still significant. Military families 

living off-base pay property taxes on their residences but typically pay little in sales tax and, 

because of the Soldiers and Sailors Relief Act, often do not pay income taxes to their State or 

locality of residence. While all types of “off-base” students either reside, or have parents who 

work, on property that the district cannot tax, the education of children who reside in low-rent 

housing is costly to districts because of the need for additional academic assistance and other 

supports often required for students from low-income families.

The 2020 request would be sufficient to maintain the Department’s commitment to almost

800,000 federally connected children in over 1,000 school districts. While LEAs may expend 

their payments for either current operations or capital costs, the program’s formula is designed 

to compensate LEAs for current expenditures for educating federally connected students. Most 

districts report that they use Basic Support Payments for payroll and general operating 

expenditures. 
IMPACT AID

Basic support payments

B-14

PROGRAM OUTPUT MEASURES 

(amounts in whole dollars)

Output Measures 2018 2019 2020

All eligible LEAs

All eligibl e LEAs :Number of LEAs receiving payments 1,040 1,040 1,040

All eligibl e LEAs:Range of payments $540–

54,968,064

$558–

59,111,139

$560–

62,725,584

Regular LEAs

Regular LEAs:Number of LEAs receiving payments 1,013 1,015 1,044

Regular LEAs:Range of payments $540–

41,676,623

$558–

43,066,752

$560–

43,195,333

Heavily impacted LEAs

Heavil y Impacted LEAs: Number of LEAs receiving payments 27 25 25

Heavil y Impacted LEAs: Range of payments $506,517–

54,968,064

$451,192–

59,111,139

$452,539–

62,725,584

Number of federally connected students

Federall y connected students: In all eligible LEAs 799,041 799,041 799,041

Federall y connected students: In regular LEAs 744,768 752,077 752,077

Federall y connected students: In heavily impacted LEAs 54,273 46,964 46,964

Total payments for students

Payments: In regular LEAs $998,220,119 $1,058,925,910 $1,055,867,890

Payments: In heavily impacted LEAs $272,021,881 $242,316,090 $245,374,110

Average payment per student

Aver age payment: In all LEAs $1,590 $1,629 $1,629

Aver age payment: In regular LEAs $1,340 $1,408 $1,404

Aver age payment: In heavily impacted LEAs $5,012 $5,160 $5,225

Percentage of LEAs by size of payment

Percentag e of LEAs by size of payment: $1–4,999 3.1% 3.2% 3.1%

Percentag e of LEAs by size of payment: $5,000–49,999 29.1% 29.0% 29.4%

Percentag e of LEAs by size of payment: $50,000–499,999 40.6% 40.6% 40.3%

Percentag e of LEAs by size of payment: $500,000 or more 27.2% 27.2% 27.2%
IMPACT AID

Basic support payments

B-15

Output Measures 2018 2019 2020

Total dollar amount of payments 

by size of payment

Total dollar amount of payments 

by size of payment: $1–4,999 $110,064 $112,972 $105,307 Total dollar amount of payments 

by size of payment: $5,000–49,999 $7,048,290 $6,913,547 $6,883,435 Total dollar amount of payments 

by size of payment: $50,000–499,999 $79,484,352 $79,683,536 $78,502,401 Total dollar amount of payments 

by size of payment: $500,000 or more $1,183,599,294 $1,214,531,945 $1,215,750,857

Average payment per child 

by percentage of federally

connected children

Aver age payment per child 

by percentage of federall y

connected children: 0–19 percent $232 $232 $229 Aver age payment per child 

by percentage of federall y

connected children: 20–39 percent $1,082 $1,104 $1,103 Aver age payment per child 

by percentage of federall y

connected children: 40–59 percent $3,745 $3,905 $3,946 Aver age payment per child 

by percentage of federall y

connected children: 60–79 percent $6,830 $6,919 $6,859 Aver age payment per child 

by percentage of federall y

connected children: 80 percent or more $8,202 $8,467 $8,486

Number of students

Number of students: “On-Base” students1 215,296 215,296 215,296

Number of students: Indian students 111,284 111,284 111,284

Number of students: Military “On-Base” students 101,564 101,564 101,564

Number of students: Civilian “On-Base” students 2,448 2,448 2,448

Number of students: “Off-Base” students2 583,745 583,745 583,745

Number of students: Military “Off-Base” students 216,860 216,860 216,860

Number of students: Low-rent housing students 184,619 184,619 184,619

Number of students: Civilian “Off-Base” students 182,266 182,266 182,266

Total payments

Total payments: “On-Base” students1 $1,140,471,848 $1,168,196,664 $1,167,120,823

Total payments: Indian students $696,284,929 $715,909,389 $715,564,225

Total payments: Military “On-Base” students $438,442,126 $446,422,678 $445,691,527

Total payments: Civilian “On-Base” students $5,744,793 $5,864,597 $5,865,071

Total payments: “Off-Base” students2 $129,770,152 $133,045,336 $134,121,177

Total payments: Military “Off-Base” students $93,233,482 $95,305,406 $96,634,171

Total payments: Low-rent housing students $12,952,767 $13,128,242 $13,036,937

Total payments: Civilian “Off-Base” students $23,583,903 $24,611,688 $24,450,069

 

1 “On-Base” students are generally those students who live on Indian lands or whose parents both live and work on 

Federal property, as defined in subsections 7003(a)(1)(A)-(C). 2 “Off-Base” students are generally those students who either reside on Federal land with their parents or whose 

parents work on Federal land, as defined in subsections 7003(a)(1)(D)-(G).
IMPACT AID

Basic support payments

B-16

Output Measures 2018 2019 2020

Average payments per child

Aver age payments per child: “On-Base” students1 $5,297 $5,426 $5,421

Aver age payments per child: Indian students $6,257 $6,433 $6,430

Aver age payments per child: Military “On-Base” students $4,317 $4,395 $4,388

Aver age payments per child: Civilian “On-Base” students $2,347 $2,396 $2,396

Aver age payments per child: “Off-Base” students2 $222 $228 $230

Aver age payments per child: Military “Off-Base” students $430 $439 $446

Aver age payments per child: Low-rent housing students $70 $71 $71

Aver age payments per child: Civilian “Off-Base” students $129 $135 $134

Cost of fully funding 

maximum payments $2,216,035,699 $2,203,783,922 $2,207,235,599

 1 “On-Base” students are generally those students who live on Indian lands or whose parents both live and work on 

Federal property, as defined in subsections 7003(a)(1)(A)-(C). 2 “Off-Base” students are generally those students who either reside on Federal land with their parents or whose 

parents work on Federal land, as defined in subsections 7003(a)(1)(D)-(G).

NOTE: All figures are estimates based on 2018 student count and payment data as of January 2019.

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years, and those requested in fiscal 

year 2020 and future years, as well as the resources and efforts invested by those served by 

this program.
IMPACT AID

Basic support payments

B-17

Goal: To provide appropriate financial assistance for federally connected children who 

present a genuine burden to their school districts.

Objective: Properly compensate districts for revenue lost due to a Federal presence.

Measure: The percentage of Basic Support Payment recipients (excluding districts that receive 

payments for “heavily impacted” districts) that have per-pupil expenditures between 80 and 

120 percent of their State average per-pupil expenditure.

Year Target Actual

2015 67% 64.1%

2016 67 62.3

2017 67 63.5

2018 67

2019 67

2020 67

Measure: The percentage of Basic Support Payment recipients designated as “heavily 

impacted” districts that have per-pupil expenditures between 80 and 120 percent of their State 

average per-pupil expenditure.

Year Target Actual

2015 75% 66.7%

2016 75 56.7

2017 75 46.7

2018 75

2019 75

2020 75

Additional information: These measures serve as proxies for how well Impact Aid payments 

make up for the revenue lost due to the presence of federally connected students. Districts 

spending more than 20 percent above or below the State average are likely being over- or 

under- compensated. In 2017, 30 percent of regular districts spent more than 120 percent of 

the State average while 40 percent of heavily impacted districts spent more than 120 percent of 

the State average. Targets were set using 2006 data as the baseline. Data for 2018 will be 

available once final payments have been made.
IMPACT AID

Basic support payments

B-18

Efficiency measures

Measure: The number of requests to forgive overpayments of Basic Support Payments.

Year Target Actual

2015 10 0

2016 10 2

2017 10 2

2018 10 3

2019 10

2020 10

Additional information: This performance measure provides a proxy for calculating the extent 

to which the Department’s payments to over 1,000 LEAs are accurate. The data show that the 

accuracy of payments has been very good in recent years. In 2018, there were 3 requests from 

LEAs for overpayment forgiveness.

Measure: The percentage of eligible applicants that receive initial Basic Support Payments 

within 60 days after the enactment of an appropriation.

Year Target Actual

2015 90% 90%

2016 90 92

2017 90 99

2018 90 99

2019 90 96

2020 90

Additional information: This measure tracks the timeliness of Basic Support Payments made 

by the Department. The Department has successfully met and exceeded the performance 

target for 5 consecutive years, including the most recent year, fiscal year 2019.

Other Performance Information

A study of the Impact Aid program, published in 2007, examined the financial burdens that 

school districts face due to a Federal presence and how well Impact Aid funds are targeted to 

those affected districts. While targeting of funds to the districts with the greatest financial need 

was found to be poor overall, the analysis found better results with models that excluded heavily 

impacted districts and districts with Indian lands.

The Department contracted for additional analyses in 2008, published in 2010, that expanded 

on the previous study by examining the extra costs of educating students living on Indian lands, 

determining the impact of the Local Contribution Rates on the formula allocations, and 

developing an improved model to track the performance of the funding formula. The study 

found that districts serving students living on Indian lands face higher costs of education 

associated with higher need, due to many of the same challenges that districts serving other 
IMPACT AID

Basic support payments

B-19

low-income populations face as well as challenges unique to Native American populations, 

including geographic isolation and unique cultural needs. In looking at the various local 

contribution rate options that exist in the current Basic Support Payments formula, the study 

found that the elimination of the national average per-pupil spending as a local contribution rate 

would narrow the difference in per-pupil spending between Impact Aid districts and comparable 

non-Impact Aid districts but would not improve the targeting of funds to districts with the greatest 

need.

The Department is working to develop and implement a research agenda to help determine the 

appropriate Federal share in supporting districts impacted by the presence of Federal property.
IMPACT AID

B-20

Payments for children with disabilities

(Elementary and Secondary Education Act of 1965, as amended, Title VII, section 7003(d))

(dollars in thousands)

FY 2020 Authorization: $52,065

Budget Authority: 

2019 2020 Change 

$48,316 $48,316 0

PROGRAM DESCRIPTION

The Individuals with Disabilities Education Act (IDEA) requires local educational agencies 

(LEAs) to provide a free appropriate public education to students with disabilities, whose 

educational costs are generally higher than those of other students. Most of the costs 

associated with serving students with disabilities in accordance with the IDEA are paid with 

State and local funds, as well as with Federal IDEA funds. Impact Aid Payments for Children 

with Disabilities provides supplemental assistance to LEAs that have a reduced local revenue 

base due to a Federal presence by providing a portion of the cost of educating federally 

connected students with disabilities that, in other LEAs, is met with local funds.

ESEA section 7003(d)(1) authorizes payments to LEAs that meet the eligibility requirements 

under the Basic Support Payments authority for the following categories of federally connected 

students who are eligible for services under the IDEA:

A. students who live on Federal property with a parent who is a foreign military officer 

accredited by a foreign government;

B. students who live on Federal property and who have a parent on active duty in the 

uniformed services of the United States;

C. students who live on Indian lands; and

D. students who do not live on Federal property but who have a parent on active duty in the 

uniformed services of the United States or a parent who is a foreign military officer 

accredited by a foreign government.

Available funds are paid to LEAs based on the number of eligible students with disabilities 

enrolled in each LEA, except that a student in category (D) receives one-half of the weight 

provided for students in categories (A), (B), and (C). Funds are ratably distributed based on the 

weighted student count.

LEAs that receive payments under this authority must use the funds to provide the students who 

are counted with a free appropriate public education in accordance with the IDEA. These 

payments are intended to help pay the "excess costs" of educating these students (i.e., those 

costs that exceed the cost of educating a student without a disability).
IMPACT AID

Payments for children with disabilities

B-21

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2015 .....................................................................................$48,316

2016 .......................................................................................48,316

2017 .......................................................................................48,316

2018 .......................................................................................48,316

2019 .......................................................................................48,316

FY 2020 BUDGET REQUEST

The Administration requests $48.3 million for Payments for Children with Disabilities in fiscal

year 2020, the same as the fiscal year 2019 appropriation. These payments would be made on 

behalf of federally connected children with disabilities in order to help eligible LEAs provide a 

free appropriate public education to all children with disabilities.

A Department publication, “What Are We Spending on Special Education Services in the United 

States, 1999–2000,” estimated the cost of educating a student with a disability to be about twice 

the amount needed for the typical regular education student with no special needs. In 2020, 

using the national average per-pupil expenditure as the measure of excess cost of educating a 

federally connected student with a disability, the combination of IDEA funds and Payments for 

Children with Disabilities would provide, on average, 22 percent of the excess cost to eligible 

LEAs. The supplemental funding under this authority is justified because federally affected 

LEAs are unable to tax Federal property to help meet the excess costs of educating children 

with disabilities who reside with their parents on Federal lands.
IMPACT AID

Payments for children with disabilities

B-22

PROGRAM OUTPUT MEASURES

(amounts in whole dollars)

Output Measures 2018 2019 2020

Number of LEAs receiving payments 825 825 849

Range of payments $571–

1,035,137

$571–

1,035,137

$557–

1,068,045

Percentage of LEAs by size of payment Percentag e of LEAs 

by size of payment:

Percentag e of LEAs 

$1–4,999 19.0% 19.0% 19.0%

by size of payment:

Percentag e of LEAs 

$5,000–19,999 29.3% 29.3% 29.3%

by size of payment: $20,000–99,999 37.4% 37.4% 37.4%

by size of payment: $100,000 or more 14.3% 14.3% 14.3%

Total dollar amount of payments by size 

of payment

 ar amount of payments by size of payment: $1–4,999 $429,611 $429,611 $429,611

 ar amount of payments by size of payment: $5,000–19,999 $2,783,168 $2,783,168 $2,783,168

 ar amount of payments by size of payment: $20,000–99,999 $14,100,117 $14,100,117 $14,100,117

 ar amount of payments by size of payment: $100,000 or more $31,003,104 $31,003,104 $31,003,104

Number of “On-Base” students eligible1 29,494 29,494 29,494

Number of “Off-Base” students eligible2 20,514 20,514 20,514

Total eligible students 50,008 50,008 50,008

Total funding for “On-Base” students $35,849,351 $35,849,351 $35,849,351

Total funding for “Off-Base” students $12,466,649 $12,466,649 $12,466,649

Average payment per “On-Base” student $1,215 $1,215 $1,215

Average payment per “Off-Base” student $608 $608 $608

Average total payment per student3 $966 $966 $966

Average IDEA Grants to States

funding per student $1,775 $1,770 $1,756

Total average Federal

funding per student $2,741 $2,736 $2,722

 1 “On-Base” students are generally those students who live on Indian lands or whose parents both live and work on 

Federal property, as defined in subsections 7003(a)(1)(A)-(C). 2 “Off-Base” students are generally those students who either reside on Federal land with their parents or whose 

parents work on Federal land, as defined in subsections 7003(a)(1)(D)-(G). 3 Impact Aid Payments for Children with Disabilities.

NOTE: All figures are estimates based on 2018 student count and payment data as of January 2019.
IMPACT AID

Payments for children with disabilities

B-23

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years, and those requested in fiscal 

year 2020 and future years, as well as the resources and efforts invested by those served by 

this program.

Efficiency measures

Measure: The number of requests to forgive overpayments of Payments for Children with 

Disabilities.

Year Target Actual

2015 10 0

2016 10 2

2017 10 2

2018 10 0

2019 10

2020 10

Additional information: This measure provides a proxy for calculating the extent to which the 

Department’s payments to nearly 800 LEAs are accurate. The data show the accuracy of 

payments has been very good in recent years. In 2018, there were 0 requests from LEAs for 

overpayment forgiveness.

Measure: The percentage of eligible applicants who receive initial Payments for Children with 

Disabilities within 60 days after the enactment of an appropriation.

Year Target Actual

2015 90% 90%

2016 90 92

2017 90 99

2018 90 99

2019 90 96

2020 90

Additional information: This measure tracks the timeliness of Payments for Children with 

Disabilities made by the Department. The Department has successfully met the performance

target for 5 consecutive years, including the most recent year, fiscal year 2019.
IMPACT AID

B-24

Facilities maintenance

(Elementary and Secondary Education Act of 1965, as amended, Title VII, section 7008)

(dollars in thousands)

FY 2020 Authorization: $5,210

Budget Authority: 

2018 2019 Change 

$4,835 $4,835 0

PROGRAM DESCRIPTION

The Department makes awards to local educational agencies (LEAs) under section 7008 of the 

Elementary and Secondary Education Act (ESEA) for emergency repairs and for 

comprehensive capital improvements to schools that the Department owns but that LEAs use to 

serve federally connected military dependent students. In addition, the law mandates that the 

Department transfer these facilities to the appropriate LEAs or other entities as soon as 

practicable. The Department may not charge LEAs for the use of these school buildings and 

must gain an LEA's consent to accept them. Subject to these restrictions, the Department may 

transfer ownership on such terms as the Secretary deems appropriate. Funds for this program 

are available until expended.

Currently, the Department owns 15 schools that are on military bases and serve students whose 

parents are in the armed forces. Either the Department of Defense (DoD) or LEAs operate 

these schools. Since 1983, DoD has assumed financial responsibility for maintenance and 

renovation of many of these school facilities, which DoD operates as Domestic Dependents 

Elementary and Secondary Schools (DDESSs). The DoD is currently responsible for 8 facilities

while ED continues to be directly responsible for the other 7, which LEAs operate and use to 

educate military dependent students.
IMPACT AID

Facilities maintenance

B-25

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2015 .......................................................................................$4,835

2016 .........................................................................................4,835

2017 .........................................................................................4,835

2018 .........................................................................................4,835

2019 .........................................................................................4,835

FY 2020 BUDGET REQUEST

The Administration requests $4.8 million for Facilities Maintenance in fiscal year 2020, the same 

as the fiscal year 2019 appropriation. These funds would be used to upgrade and transfer 

school facilities currently owned by the Department to LEAs, which can manage school 

buildings in their communities more effectively than the Federal Government. In addition, funds 

would be used to provide emergency repairs, such as correcting health and safety hazards, in 

school facilities owned by the Department that have not yet been transferred. 

The Department is in the final stages of transferring to DoD the titles to the remaining 8 facilities 

funded and operated by DoD. The 7 remaining school facilities owned by the Department and 

operated by LEAs generally are in poor condition, and most LEAs are unwilling to accept the 

schools unless the Department provides sufficient funds to the LEA to correct any deficiencies.

PROGRAM OUTPUT MEASURES

Output Measures 2018 2019 2020

Number of properties receiving 

emergency repairs 2 2 2

Number of facilities transferred to LEAs

(owned by ED and operated by LEAs) 2 1-2 1-2

PROGRAM PERFORMANCE INFORMATION

The Department’s measure of progress for this program is the number of schools removed from 

the inventory of Department-owned facilities through transfers to LEAs. (The measure does not 

include no-cost transfers to DoD, as the maintenance of those schools is not supported through 

the program. However, the Department will continue to track these DoD transfers until all of that 

inventory is accepted by DoD.) Since 1999, the number of schools for which the Department is 

responsible has decreased by 87 percent, from 53 to 7, thus reducing the agency’s

responsibility for maintenance and renovation.
IMPACT AID

B-26

Construction

(Elementary and Secondary Education Act of 1965, as amended, Title VII, section 7007)

(dollars in thousands)

FY 2020 Authorization: $18,757

Budget Authority: 

2018 2019 Change

$17,406 $17,406 0

PROGRAM DESCRIPTION

The Department makes formula and competitive grants under Section 7007 of the Elementary 

and Secondary Education Act (ESEA) to support school construction in local educational 

agencies (LEAs) that educate federally connected students or have federally owned land. The 

authorizing statute provides that 40 percent of appropriated funds must be used for formula 

grants under section 7007(a) and 60 percent for competitive grants under section 7007(b). 

However, Congress typically overrides this statutory requirement to require the use of all funds 

for either formula or competitive grants; for example, it required competitive grants in fiscal 

years 2012, 2013, 2015, 2017 and 2019, but formula grants in fiscal years 2014, 2016 and 

2018. 

Formula grants (section 7007(a))

Three categories of LEAs are eligible for formula Construction grants:

• those in which the number of students living on Indian lands is at least 50 percent of the 

LEA’s total average daily attendance and that receive a regular Basic Support Payment;

• those in which the number of students with a parent in the uniformed services is at least 

50 percent of the LEA’s total average daily attendance and that receive a regular Basic 

Support Payment; and

• those that receive Basic Support Payments for Heavily Impacted LEAs.

Payments are determined by distributing half of the available funds among eligible LEAs based 

on each LEA’s share of the total weighted count of students living on Indian lands, as specified 

in the regular Basic Support Payments formula, and half of the available funds among eligible 

LEAs based on each LEA’s share of the total weighted count of students whose parents are in 

the uniformed services, as specified in the regular Basic Support Payments formula.
IMPACT AID

Construction

B-27

Competitive grants (section 7007(b))

The Department uses the statutory priority on emergency grants in awarding competitive 

construction grants. These grants go to school districts that are eligible to receive payments 

under the Impact Aid Construction formula and either have little or no bonding capacity or are 

eligible to receive payments as a “heavily impacted” school district under the Basic Support 

Payments formula.

Other criteria used to make awards include:

• the LEA’s level of bonded indebtedness,

• the assessed value of real property per student in the LEA compared to the average 

assessed value of real property per student in the State,

• the tax rate for school purposes in the LEA compared to the average rate in the State,

• funds available for capital expenditures,

• the percentage of property that is not taxable due to a Federal presence, and

• the number and percentage of certain types of federally connected students.

In addition, emergency grants are awarded, in part, based on severity of emergency.

Competitive grant funds for certain LEAs may not exceed: (1) 50 percent of the total cost of the 

project assisted; or (2) $4.0 million during any 4-year period. When the appropriation for 

Construction has included funding for competitive grants, funds have been made available for 

2 years.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2015 .....................................................................................$17,406

2016 .......................................................................................17,406

2017 .......................................................................................17,406

2018 .......................................................................................17,406

2019 .......................................................................................17,406

FY 2020 BUDGET REQUEST

The Administration requests $17.4 million for Construction in fiscal year 2020, the same as the 

fiscal year 2019 appropriation. The request includes appropriations language that would require 

all funds to be used for competitive grants and to be available for 2 years. By awarding funds 

through a competitive process, the Department can ensure that districts with the greatest needs 

receive meaningful amounts of funding to make emergency repairs. The average award for 

competitive grants has been about $2.4 million for 7 to 8 LEAs in the most recent two 

competitions, while the average award under formula grants has been about $102,000 for 170 
IMPACT AID

Construction

B-28

LEAs, with a median award of under $85,000. Over 60 percent of LEAs receive less than 

$50,000 when formula grants are funded.

Because school construction is primarily financed from local funds, and because federally 

affected LEAs cannot tax certain lands, LEAs with large percentages of federally connected 

students need supplemental funds for construction. The competitive grants enable eligible 

districts to undertake emergency renovations and modernizations. Past projects have included 

replacement of elementary schools; purchase of water filtration systems; replacement of 

heating, ventilation, and air conditioning systems; repair of electrical systems; and replacement 

of faulty windows and roofs. The program is well-targeted because the eligibility pool is limited 

to some of the poorest districts in the Nation that are also heavily dependent on Federal funding 

for their operating and maintenance expenses.

PROGRAM OUTPUT MEASURES 

(amounts in whole dollars)

Output Measures 2018 2019 2020

Formula Grants $17,406,000 0 0

Formul a Gr ants: Number of LEAs receiving formula 

payments 170 0 0

 Gr ants: Average LEA payments $102,388 0 0

Gr ants: Range of payments $500-

1,500,000

0 0

 Gr ants: Average payment per student $148 0 0

Competitive Grants $0 $17,406,000 $17,406,000

Competiti ve Grants: Number of LEAs receiving competitive 

awards 0 7-8 7-8

ve Grants: Range of payments 0 $60,000–

6,000,000

$60,000–

6,000,000

ve Grants: Peer review of new award applications 0 $7,500 $7,500

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years, and those requested in fiscal 

year 2020 and future years, as well as the resources and efforts invested by those served by 

this program.
IMPACT AID

Construction

B-29

Goal: To provide appropriate financial assistance for federally connected children who 

present a genuine burden to their school districts.

Objective: Improve the quality of public school facilities used to educate federally connected

children.

Measure: The percentage of participating LEAs reporting that the overall condition of their 

school buildings is adequate.

Year Target Actual

2015 70% 74%

2016 70 77

2017 70 72

2018 70 80

2019 70

2020 70

Additional information: LEAs that received formula or competitive construction payments in 

the previous year are asked to rate the quality of their buildings on a 6-point scale in their 

application for Impact Aid Basic Support payments.

Efficiency measures

Measure: The average number of days elapsed between the initial Impact Aid competitive 

construction award and the LEAs’ awarding of contracts.

Year Target Actual

2015 250 107

2016 250 N/A

2017 250 98

2018 250 N/A

2019 250

2020 250

Additional information: This efficiency measure is a measure of the speed with which LEAs 

award construction contracts after the Department makes the initial competitive construction 

awards. The target was met in the last four consecutive competitions (2012, 2013, 2015 and 

2017).
IMPACT AID

Construction

B-30

Measure: The percentage of all formula construction payments made by July 31 of the 

application year.

Year Target Actual

2015 90% N/A

2016 90 96.4%

2017 90 N/A

2018 90 97

2019 90 N/A

2020 90

Additional information: Prior to 2007, formula construction payments were not made until the 

end of the fiscal year. Since then, the Department has attempted to make awards earlier in the 

year so that LEAs will have access to funds during the summer, when most construction 

projects take place. Data are not shown for 2015, 2017 and 2019 because funding was not

appropriated for formula grants for those years. 

 
B-31

Payments for Federal property

(Elementary and Secondary Education Act of 1965, as amended, Title VII, section 7002)

(dollars in thousands)

FY 2020 Authorization: $71,998

Budget Authority: 

2019 2020 Change 

$74,313 0 -$74,313

PROGRAM DESCRIPTION

The Department of Education makes Payments for Federal Property under section 7002 of the 

Elementary and Secondary Education Act (ESEA) to LEAs that have lost at least 10 percent of 

the assessed value of their tax base due to the acquisition, since 1938, of real property by the 

United States Government. 

If fully funded, the formula would provide payments by multiplying the current levied local real 

property tax rate of the LEA (or, in financially dependent school districts, an imputed real 

property tax rate) by the current estimated taxable value of the Federal property.

In the absence of full funding, payments are based on a “hold-harmless” formula designed to 

preserve historic funding levels for the roughly 200 individual LEAs supported by the program.

• First, a “foundation payment” is made to eligible LEAs (e.g. those that are not substantially 

compensated by revenues from Federal property, and that meet the other eligibility criteria) 

that were also eligible in fiscal year 2009 in an amount that is equal to the greater of 

90 percent of the payment the LEA received in fiscal year 2009 and 90 percent of the 

average payment that the LEA received in fiscal years 2006, 2007, 2008, and 2009.

• Second, a special payment is made to the Highland Falls-Ft. Montgomery Central School 

District in New York, if it continues to meet the annual eligibility requirements.

• Third, from the remaining funds, a “foundation payment” is made to eligible LEAs that were 

not eligible in fiscal year 2009. The foundation payment for newly eligible LEAs since 

2009 is calculated as 90 percent of the eligible LEA’s maximum payment multiplied by the 

ratio of the appropriation to the total of all LEAs’ maximum payments in the most recent year 

in which payments have been completed.

• Fourth, any remaining funds are distributed based on prorated shares of maximum 

payments for the current year.

Payments for Federal Property may not exceed either of two different caps placed on these 

payments. The first cap limits the combination of these payments and payments received under 

the Basic Support Payments program (7003(b)) to an LEA’s maximum regular Basic Support 

Payment or the maximum Payment for Federal Property, whichever is greater. The second cap 

reduces the payment in the event that the combination of the calculated payment and any 

revenue the LEA received from the Federal property exceeds the maximum payment. In the 

event that funds are reduced due to either of these caps and the formula is subject to the hold-
B-32

harmless provisions, the reduced funds are redistributed under the fourth payment step. For 

“old districts” (those with fiscal year 2009 eligibility) the two caps would only apply to remaining 

funds under the fourth step whereas a “new district” (those with post-2009 eligibility) would be 

limited by both caps under the third step in their first year of eligibility and under the fourth step 

for all years of eligibility.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2015 .....................................................................................$66,813

2016 .......................................................................................66,813

2017 .......................................................................................66,813

2018 .......................................................................................73,313

2019 .......................................................................................74,313

FY 2020 BUDGET REQUEST

The Administration does not request funds for Payments for Federal Property, a decrease of 

$74.3 million from the fiscal year 2019 appropriation. Like previous Administrations, the 

Administration believes that Impact Aid funds should be used to serve federally connected 

children. Impact Aid should not compensate LEAs for lost property tax revenue due to the 

presence of Federal lands without regard to whether those districts educate any federally 

connected children.

When this authority was established in 1950, its purpose was to provide assistance to LEAs in 

cases where the Federal Government had imposed a substantial and continuing burden by 

acquiring a considerable portion of real property in the LEA. The law applied only to property 

acquired since 1938 because, in general, LEAs had been able to adjust to acquisitions that 

occurred before that time. The Administration believes that the majority of LEAs receiving 

assistance under this program have now had sufficient time—70 years—to adjust to the removal 

of the property from their tax rolls.

In addition, many LEAs receiving funds under this authority do not meet the basic eligibility 

criteria established in the authorizing statute, typically because they consist of two or more 

LEAs that consolidated, at least one of which originally met the eligibility criterion of a loss of 

10 percent of the aggregate assessed value of real property removed from the tax rolls. In such 

cases, the consolidated LEAs are no longer demonstrably burdened by the historic loss of 

taxable property, and thus are not able to demonstrate a need for Federal funds.

The Department is working to develop and implement a research agenda to help determine the 

appropriate Federal share in supporting districts impacted by the presence of Federal property.
B-33

PROGRAM OUTPUT MEASURES 

(amounts in whole dollars)

Output Measures 2018 2019 2020

Number of LEAs receiving payments 195 195 0

Average payment $381,092 $381,092 0

Range of payments $175–

5,000,000

$175–

5,000,000

0

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years as well as the resources and 

efforts invested by those served by this program.

Goal: To provide appropriate financial assistance for federally connected children who 

present a genuine burden to their school districts.

Objective: Manage Section 7002 Payments for Federal Property to disburse funds accurately 

and efficiently under the statutory formula.

Measure: The percentage of initial payments to eligible LEAs that are made by the end of the 

second quarter.

Year Target Actual

2015 75% 95%

2016 75 95

2017 75 100

2018 75 100

2019 75

Additional information: The long-term goal for this measure is to make 75 percent of initial 

payments to eligible LEAs by the end of the second quarter. For fiscal years 2017 and 2018, 

every eligible LEA received their initial payment by the end of the second quarter. No targets 

are included for fiscal year 2020 because funds are not requested for that year.