Department of Education

IMPACT AID

Fiscal Year 2016 Budget Request

CONTENTS

Page

Appropriations Language.......................................................................................................... C-1

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

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

Summary of Changes ............................................................................................................... C-4

Authorizing Legislation.............................................................................................................. C-5

Appropriations History............................................................................................................... C-6

Summary of Request ................................................................................................................ C-7

Activities: ................................................................................................................................... C-9

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

Basic support payments......................................................................................................C-9

Payments for children with disabilities ..............................................................................C-18

Facilities maintenance.......................................................................................................... C-23

Construction ......................................................................................................................... C-26

Payments for Federal property............................................................................................. C-32

State Tables*............................................................................................................................. C-38

IMPACT AID.............................................................................................................................. C-38

IMPACT AID.............................................................................................................................. C-39

* State tables reflecting 2015 allocations and 2016 estimates are posted on the Department’s Web page at: 

http://www2.ed.gov/about/overview/budget/statetables/index.html
IMPACT AID

Appropriations Language

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

title VIII of the ESEA, $1,288,603,000, of which $1,151,233,000 shall be for basic support 

payments under section 8003(b), $48,316,000 shall be for payments for children with disabilities 

under section 8003(d),1 $17,406,000 shall be for construction under section 8007(b) and be 

available for obligation through September 30,2016,

2 $66,813,000 shall be for Federal property 

payments under section 8002,3 and $4,835,000, to remain available until expended, shall be for 

facilities maintenance under section 8008:4 Provided, That for purposes of computing the 

amount of a payment for an eligible local educational agency under section 8003(a) for school 

year 2014-2015, children enrolled in a school of such agency that would otherwise be eligible for 

payment under section 8003(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 8003(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, 

2015.)

NOTES

No new language is included for this account. All programs are authorized under the expired Elementary and 

Secondary Education Act; when new authorizing legislation for the Elementary and Secondary Education Act is enacted, a 

budget for these programs will be proposed.

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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IMPACT AID

Analysis of Language Provisions and Changes

Language Provision Explanation

1 [...$1,288,603,000, of which $1,151,233,000 

shall be for basic support payments under 

section 8003(b), $48,316,000 shall be for 

payments for children with disabilities under 

section 8003(d)...]

This language specifies funding levels for 

basic support payments and payments for 

children with disabilities. 

2 [...$17,406,000 shall be for construction 

under section 8007(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 [...$66,813,000 shall be for Federal property 

payments under section 8002...]

This language specifies the amount for 

Federal property payments.

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

expended, shall be for facilities maintenance 

under section 8008:...]

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 8003(a) for 

school year 2013-2014, children enrolled in a 

school of such agency that would otherwise 

be eligible for payment under section 

8003(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 8003(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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IMPACT AID

Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2014 2015 2016

Discretionary:

DiscretionaryAppropriation ...................................................... $1,288,603 $1,288,603 $1,288,603

Total, discretionary appropriation ................. 1,288,603 1,288,603 1,288,603

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IMPACT AID

Summary of Changes

(dollars in thousands)

2015............................................................................................... $1,288,603

2016............................................................................................... 1,288,603

Net change ............................................................ 0

Increases: 2015 base

Change 

from base

Program:

Increase funding for Facilities Maintenance to allow the 

Department to make nearly all repairs and upgrades to the 

12 remaining schools for which it retains financial 

responsibility. $4,835 +66,813

Subtotal, increases +66,813

Decreases: 2015 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. 66,813 -66,813

Subtotal, decreases -66,813

Net change 0

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IMPACT AID

Authorizing Legislation

(dollars in thousands)

Activity

2015

Authorized

footnote

2015

Estimate

footnote

2016 Authorized footnote2016

Request

footnote

Payments for federally connected children:

Payments for federally connected children:Basic support payments (ESEA-VIII-8003(b) and (e)) 01 $1,151,233 To be determined1 $1,151,233

Payments for federally connected children:Payments for children with disabilities

(ESEA-VIII-8003(d)) 01 48,316 To be determined1 48,316

Facilities maintenance: (ESEA-VIII-8008) 01 4,835 To be determined1 71,648

Construction (ESEA-VIII-8007) 01,2 17,406 To be determined1 17,406

Payments for Federal property (ESEA-VIII-8002) 01 66,813 03 0

Total definite authorization

Total appropriation 1,288,603 1,288,603

Portion of request subject to reauthorization 1,288,603

1

 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2016. 2

 The statute provides that 40 percent of the funds appropriated for Construction under section 8007 shall be used to make formula payments under 

section 8007(a) and 60 percent shall be used to make competitive awards under section 8007(b). 3 The GEPA extension expired September 30, 2008; no appropriations language or reauthorizing legislation is sought for FY 2016.

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IMPACT AID

Appropriations History

(dollars in thousands)

Year

Budget 

Estimate 

to Congress

House 

AllowanceFootnote

Senate 

Allowance Footnote Appropriation

2007 $1,228,453 N/A1 N/A1 $1,228,453

2008 1,228,100 1,278,453 1,248,453 1,240,717

2009 1,240,718 1,290,7182 1,240,7182 1,265,718

Recovery Act Supplemental 

(P.L. 111-5) 0 100,000 100,000 100,000

2010 1,265,718 1,290,718 1,265,7183 1,276,183

2011 1,276,183 1,276,1834 1,296,1833 1,273,631

2012 1,276,183 1,308,6316 1,273,6316 1,291,186

2013 1,224,239 1,291,1867 1,291,1867 1,223,6495

2014 1,224,239 N/A8 1,290,9453 1,288,603

2015 1,221,790 N/A8 1,288,6039 1,288,603

2016 1,288,603

________________________________

1 This account operated under a full-year continuing resolution (P.L. 110-5). House and Senate allowances are shown as 

N/A (Not Available) because neither body passed a separate appropriations bill. 2 The levels for the House and Senate allowances reflect action on the regular annual 2009 appropriations bill, which 

proceeded in the 110th Congress only through the House Subcommittee and the Senate Committee. 3 The level for the Senate allowance reflects Committee action only. 4 The level for the House allowance reflects the House-passed full-year continuing resolution. 5 The level for appropriation reflects the Department of Defense and Full-Year Continuing Appropriations Act, 2011 

(P.L. 112-110). 6 The level for the House allowance reflects an introduced bill; the level for the Senate allowance reflects Senate 

Committee action only. 7 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. 8 The House allowance is shown as N/A because there was no Subcommittee action. 9 The level for the Senate Allowance reflects Senate Subcommittee action only.

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DEPARTMENT OF EDUCATION FISCAL YEAR 2010 PRESIDENT'S BUDGET

DEPARTMENT OF EDUCATION FISCAL YEAR 2016 PRESIDENT'S BUDGET 

Click here for accessible version 

(in thousands of dollars) 2016

Category 2014 2015 President's 

Account, Program and Activity Code Appropriation Appropriation Budget Amount Percent

Impact Aid (ESEA VIII)

1. Payments for federally connected children (section 8003):

(a) Basic support payments (section 8003(b)) D 1,151,233 1,151,233 1,151,233 0 0.000%

(b) Payments for children with disabilities (section 8003(d)) D 48,316 48,316 48,316 0 0.000%

Subtotal 1,199,549 1,199,549 1,199,549 0 0.000%

2. Facilities maintenance (section 8008) D 4,835 4,835 71,648 66,813 1381.861%

3. Construction (section 8007) D 17,406 17,406 17,406 0 0.000%

4. Payments for Federal property (section 8002) D 66,813 66,813 0 (66,813) -100.000%

Total D 1,288,603 1,288,603 1,288,603 0 0.000%

NOTES: D = discretionary program; M = mandatory program; FY = fiscal year 

Accounts are shown under the administering office that has primary responsibility for most programs in that account; however, there may be some programs that are administered by another office.

Detail may not add to totals due to rounding. 

2016 President's Budget 

Compared to 2015 Appropriation

Summary of Request

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IMPACT AID

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 $1.3 billion in fiscal year 2016 for Impact Aid payment authorities, 

including:

• $1.151 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.

• $71.6 million for Facilities Maintenance. The Department of Education owns and maintains 

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

to educate federally connected students. The request would enable the Department of 

Education to make emergency repairs to the remaining school buildings and complete the 

transfer of these schools to LEAs.

• $17.4 million for Construction payments to LEAs, with the money to be used only for the 

competitive portion of the program. 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, do not 

necessarily support the provision of educational services for these children.

The Impact Aid programs are among the Elementary and Secondary Education Act (ESEA)

programs subject to reauthorization. The Administration’s ESEA Reauthorization proposal 

includes minor changes to these programs.

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IMPACT AID

Activities:

Payments for federally connected children:

Basic support payments

(Elementary and Secondary Education Act, Title VIII, section 8003(b) and (e))

(dollars in thousands)

FY 2016 Authorization: To be determined 1

Budget Authority: 

2015 2016 Change

$1,151,233 $1,151,233 0 _____________________

1

 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2016.

PROGRAM DESCRIPTION

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;

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

described above; and

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IMPACT AID

Basic support payments

(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. Under the statutory 

payment formula, funds are used first to make the maximum payment for each of the heavily 

impacted LEAs. The remaining funds are used to make regular Basic Support Payments.

Regular Basic Support Payments (section 8003(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/or (G) (also referred to as "civilian b's"), 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 formula multiplies this weighted student count 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

• its maximum payment under the Basic Support Payments formula as a percentage of total 

current expenditures.

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IMPACT AID

Basic support payments

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 fully, but is insufficient to provide 

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

These ratably increased LOT payments; however, may not exceed an LEA’s maximum payment.

Basic Support Payments for Heavily Impacted LEAs (section 8003(b)(2))

The eligibility criteria and payment formulas for Basic Support Payments for Heavily Impacted 

LEAs are particularly complex. There are two sets of eligibility criteria. One set is for LEAs that 

received these payments in fiscal year 2000 and the second, more stringent set is for all other 

eligible LEAs. The latter LEAs were not eligible to receive payments until fiscal year 2002. 

LEAs that received a payment in fiscal year 2000 and fail to meet the eligibility criteria in a 

subsequent year continue to receive a Basic Support Payment for Heavily Impacted LEAs in the 

first year that they fail to meet the criteria.

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. Under 

the formula for heavily impacted LEAs, LEAs receive funds on behalf of students in categories 

(F) and (G) (also referred to as civilian “b’s”) even if the number of those students falls below the 

threshold of 1,000 students or 10 percent that applies to regular Basic Support Payments. 

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 

under the regular Basic Support Payments formula, but 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 8003(b)(1). If the appropriation is insufficient to 

provide LOT payments in full for regular LEAs under section 8003(b)(1), Basic Support 

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

to regular LEAs.

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IMPACT AID

Basic support payments

The authorizing law also makes an LEA meeting certain unique criteria eligible for Basic Support 

Payments for Heavily Impacted LEAs. A school district is eligible under this provision if:

• its boundaries are identical to island property designated by the Secretary of the Interior as 

being held in trust by the Federal Government,

• it has no taxing authority, and

• it received a regular Basic Support Payment in fiscal year 2001.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2011 ................................................................................... $1,135,724

2012 ..................................................................................... 1,153,540

2013 ..................................................................................... 1,093,203

2014 ..................................................................................... 1,151,233

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

FY 2016 BUDGET REQUEST

The Basic Support Payments program is authorized by the Elementary and Secondary 

Education Act of 1965 and is, therefore, subject to reauthorization. For fiscal year 2016, the 

Administration requests the same as the 2015 level for the Basic Support Payments program. 

The Administration will seek to continue appropriations language enacted in 2015 that provides

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

ensuring greater consistency and support for children adversely affected by ongoing military 

action overseas.

The request recognizes that the so-called “a” students (Indian, military, and civilian)—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 must 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 the presence of the so-called “b” students (military, civilian, and low-rent housing) 

residing on, or whose parents work on, private property does not create the same financial 

burden for LEAs, it is still significant. The families of military “b’s” 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 “b” 

students either reside on, 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 2016 request level would be sufficient to maintain the Department’s commitment to more 

than 900,000 federally connected students. While LEAs may expend their payments for either 

current operations or capital costs, the program’s formula is designed to compensate LEAs for 

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IMPACT AID

Basic support payments

current expenditures for educating federally connected students. Most districts report that they 

use Basic Support Payments for payroll and general operating expenditures.

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2014 2015 2016

All eligible LEAs

All eligible LEAs:Number of LEAs receiving payments 1,140 1,140 1,140

All eligible LEAs:Range of payments $100–

$52,787,138

$100–

$52,787,138

$100–

$52,787,138

Regular LEAs

Regular LEAs:Number of LEAs receiving payments 1,112 1,112 1,112

Regular LEAs:Range of payments $100–

$42,952,470

$100–

$42,952,470

$100–

$42,952,470

Heavily impacted LEAs

Heavily Impacted LEAs:Number of LEAs receiving payments 28 28 28

Heavily Impacted LEAs:Range of payments $887,513–

$52,787,138

$887,513–

$52,787,138

$887,513–

$52,787,138

Number of federally connected students

Federally connected students:In regular LEAs 846,146 846,146 846,146

Federally connected students:In heavily impacted LEAs 62,215 61,573 61,573

Federally connected students:In all eligible LEAs 908,361 908,361 908,361

Total payments for students

Payments:In regular LEAs $859,067,484 $859,067,484 $859,067,484

Payments:In heavily impacted LEAs $292,165,516 $292,165,516 $292,165,516

Average payment per student

Average payment:In all LEAs $1,267 $1,267 $1,267

Average payment:In regular LEAs $1,015 $1,015 $1,015

Average payment:In heavily impacted LEAs $4,696 $4,696 $4,696

Percentage of LEAs 

by size of payment

$1-4,999 5.9% 5.9% 5.9%

$5,000-49,999 33.8% 33.8% 33.8%

$50,000-499,999 38.1% 38.1% 38.1%

$500,000 or more 22.2% 22.2% 22.2%

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IMPACT AID

Basic support payments

Measures 2014 2015 2016

Total dollar amount of payments 

by size of payment

$1–4,999 $173,095 $173,095 $173,095

$5,000–49,999 $8,560,213 $8,560,213 $8,470,183

$50,000–499,999 $84,156,549 $84,156,549 $84,156,549

$500,000 or more $1,058,343,144 $1,058,343,144 $1,058,343,144

Average payment per child 

by percentage of federally

connected children

0–19 percent $193 $193 $193

20–39 percent $642 $642 $642

40–59 percent $2,603 $2,603 $2,603

60–79 percent $6,204 $6,204 $6,204

80 percent or more $6,833 $6,833 $6,833

Number of students

“a” students 1 223,683 223,683 223,683

Indian “a” students 113,495 113,495 113,495

Military “a” students 107,689 107,689 107,689

Civilian “a” students 2,499 2,499 2,499

“b” students 2 684,678 684,678 684,678

Military “b” students 259,945 259,945 259,945

Low-rent housing “b” students 219,972 219,972 219,972

Civilian “b” students 204,761 204,761 204,761

Total payments

“a” students 1 $1,003,968,007 $1,003,968,007 $1,003,968,007

Indian “a” students $587,733,592 $587,733,592 $587,733,592

Military “a” students $411,222,616 $411,222,616 $411,222,616

Civilian “a” students $5,011,799 $5,011,799 $5,011,799

“b” students 2 $147,264,993 $147,264,993 $147,264,993

Military “b” students $111,207,669 $111,207,669 $111,207,669

Low-rent housing “b” students $14,039,051 $14,039,051 $14,039,051

Civilian “b” students $22,018,273 $22,018,273 $22,018,273

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IMPACT AID

Basic support payments

Measures 2014 2015 2016

Average payments per child

“a” students 1 $4,488 $4,488 $4,488

Indian “a” students 5,178 5,178 5,178

Military “a” students 3,819 3,819 3,819

Civilian “a” students 2,005 2,005 2,005

“b” students 2 $215 $215 $215

Military “b” students 428 428 428

Low-rent housing “b” students 64 64 64

Civilian “b” students 108 108 108

Cost of fully funding 

maximum payments $2,151,360,383 $2,151,360,383 $2,151,360,383

_________________

NOTES: All figures are estimates based on student count and payment data from FY 2014.

The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved under 

section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. While the Department did not reserve funds from the Basic Support Payments program under this 

authority in fiscal year 2014, it may do so in fiscal years 2015 and 2016.

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

Federal property, as defined in subsections 8003(a)(1)(A)–(C). 2 “b” 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 8003(a)(1)(D)–(G). 

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 

FY 2016 and future 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: 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.

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IMPACT AID

Basic support payments

Year Target Actual

2011 65% 63.2%

2012 67 64.2

2013 67 63.6

2014 67

2015 67

2016 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

2011 60% 64.0%

2012 75 70.4

2013 75 63.0

2014 75

2015 75

2016 75

Additional information: These measures, developed by the Department in 2008, 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 under- or over-compensated. In 2013, 28.9 percent of regular districts 

spent more than 120 percent of the State average while 25.9 percent of heavily impacted 

districts spent more than 120 percent of the State average. Targets were set using 2006 data 

as the baseline. Data compiled for 2013 show that the target was not met for heavily impacted 

districts or for the regular districts. Data for 2014 will be available in August 2015.

Efficiency measures

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

Year Target Actual

2011 10 5

2012 10 4

2013 10 4

2014 10 1

2015 10

2016 10

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

to which the Department’s payments to over 1,100 LEAs are accurate. The data show that the 

C-16
IMPACT AID

Basic support payments

accuracy of payments has been very good in recent years. In 2013, the number of requests 

received from LEAs for overpayment forgiveness was below the target ceiling of 10 requests.

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

within 60 days after the enactment of an appropriation.

Year Target Actual

2011 90% 93%

2012 90 91

2013 90 99

2014 90 97

2015 90

2016 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 4 consecutive years, including the most recent year, fiscal year 2014.

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 (LCRs) 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 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.

C-17
IMPACT AID

Payments for children with disabilities

(Elementary and Secondary Education Act, Title VIII, section 8003(d))

(dollars in thousands)

FY 2016 Authorization: To be determined 1

Budget Authority: 

2015 2016 Change

$48,316 $48,316 0 _____________________

1

 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2016.

PROGRAM DESCRIPTION

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

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

educational costs are generally higher than those of other students. 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 8003(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

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IMPACT AID

Payments for children with disabilities

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).

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2011 ........................................................................................ $48,505

2012 .......................................................................................... 48,413

2013 .......................................................................................... 45,881

2014 .......................................................................................... 48,316

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

FY 2016 BUDGET REQUEST

For fiscal year 2016, the Administration requests $48.3 million for Payments for Children with 

Disabilities, the same as the 2015 level. These payments would be 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 (IDEA) to provide a free appropriate public education 

to all children with disabilities. 

Payments for Children with Disabilities help federally affected LEAs provide the special 

education services required by the Individuals with Disabilities Education Act. 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 2016, 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, 24 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 even though they educate children with disabilities who reside with their 

parents on Federal lands.

C-19
IMPACT AID

Payments for children with disabilities

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2014 2015 2016

Number of LEAs receiving payments 878 878 878

Range of payments $515–

$1,216,140

$515–

$1,216,140

$515–

$1,216,140

Percentage of LEAs 

by size of payment

$1–4,999 21.9% 21.9% 21.9%

$5,000–19,999 32.5% 32.5% 32.5%

$20,000–99,999 32.3% 32.3% 32.3%

$100,000 or more 13.3% 13.3% 13.3%

Total dollar amount of payments 

by size of payment

$1–4,999 $510,277 $510,277 $510,277

$5,000–19,999 $3,351,571 $3,351,571 $3,351,571

$20,000–99,999 $13,517,571 $13,517,571 $13,517,571

$100,000 or more $30,936,507 $30,936,507 $30,936,507

Number of “a” students eligible 1 30,217 30,217 30,217

Number of “b” students eligible 2 24,054 24,054 24,054

Total eligible students 54,271 54,271 54,271

Total funding for “a” students $34,560,352 $34,560,352 $34,560,532

Total funding for “b” students $13,755,648 $13,755,648 $13,755,648

Average payment per “a” student $1,144 $1,144 $1,144

Average payment per “b” student $572 $572 $572

Average total payment per student 3 $890 $890 $890

Average IDEA Grants to States

funding per student $1,743 $1,742 $1,768

Total average Federal

funding per student $2,633 $2,632 $2,658

_________________

NOTES: All figures are estimates based on student count and payment data from FY 2014.

The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved under 

section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. While the Department did not reserve funds from the Payments for Children with Disabilities program 

under this authority in fiscal year 2014, it may do so in fiscal years 2015 and 2016.

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

Federal property, as defined in subsections 8003(a)(1)(A)–(C).

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IMPACT AID

Payments for children with disabilities

2 “b” 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 8003(a)(1)(D)–(G). 3 Impact Aid Payments for Children with Disabilities.

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 

FY 2016 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

2011 10 5

2012 10 4

2013 10 4

2014 10 1

2015 10

2016 10

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

to which the Department’s payments to nearly 800 LEAs are accurate. The data show that the 

accuracy of payments has been very good in recent years.

C-21
IMPACT AID

Payments for children with disabilities

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

2011 90% 93%

2012 90 91

2013 90 99

2014 90 97

2015 90

2016 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 4 consecutive years, including the most recent applicable year, fiscal year 2014.

C-22
IMPACT AID

Facilities maintenance

(Elementary and Secondary Education Act, Title VIII, section 8008)

(dollars in thousands)

FY 2016 Authorization: To be determined 1

Budget Authority: 

2015 2016 Change

$4,835 $71,648 +$66,813 _____________________

1

 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2016.

PROGRAM DESCRIPTION

The Department of Education (ED) makes awards under section 8008 of the Elementary and 

Secondary Education Act (ESEA) for emergency repairs and for comprehensive capital 

improvements to schools that ED owns but that local educational agencies (LEAs) use to serve 

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

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

practicable. ED may not charge LEAs for the use of these school buildings, and ED must gain 

an LEA's consent to accept them. Subject to these restrictions, ED may make the transfers on 

such terms as the Secretary deems appropriate. Funds for this program are available until 

expended.

Currently, the Department owns 26 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 

14 facilities while ED continues to be directly responsible for the other 12, which LEAs operate 

and use to educate military dependent students.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2011 .......................................................................................... $4,854

2012 ............................................................................................ 4,845

2013 ............................................................................................ 4,591

2014 ............................................................................................ 4,835

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

C-23
IMPACT AID

Facilities maintenance

FY 2016 BUDGET REQUEST

For 2016, the Administration requests $71.6 million for Facilities Maintenance, an increase of 

$66.8 million above the 2015 level. These funds would be used to upgrade and transfer school 

facilities currently owned by ED to LEAs, which can manage school buildings in their 

communities more effectively than the Federal Government. The Administration believes that 

the requested increase would allow the Department to make nearly all repairs and upgrades to 

the 12 remaining schools for which it retains financial responsibility, thus clearing the way for 

transfer of these schools to the LEAs that operate them. By requesting the full, or nearly full, 

cost for the remaining schools in fiscal year 2016, The Administration expects to save funds in 

the long term. The estimated costs of the repair and renovations often increase over time as the 

schools further deteriorate.

Since fiscal year 2008, ED has completed the transfer to the DoD, at no cost to ED, titles to 

47 facilities that the DoD operates as Domestic Dependents Elementary and Secondary Schools

(DDESSs), bringing the remaining number of schools owned by ED down to the current 26. ED 

is in the final stages of transferring to DoD the titles to the remaining 14 facilities funded and 

operated by DoD.

LEAs operate the 12 remaining school facilities for which ED will continue to be responsible. In 

many instances, these facilities are deteriorated, are overcrowded, or otherwise do not meet 

current standards. Most LEAs are unwilling to accept the schools unless ED provides sufficient 

funds to the LEA to correct the problems. The increased funding proposed for 2016 would help 

address this concern and facilitate the transfer of these facilities to the LEAs.

PROGRAM OUTPUT MEASURES

Measures 2014 2015 2016

Number of properties receiving 

emergency repairs 2 2–3 10–12

Number of facilities transferred (owned by 

ED and operated by LEAs) 1 2 6

_________________

NOTE: The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved 

under section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. While the Department did not reserve funds from the Facilities Maintenance program under this authority 

in fiscal year 2014, it may do so in fiscal years 2015 and 2016.

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 

C-24
IMPACT AID

Facilities maintenance

the program. However we will continue to track these DoD transfers until all of the inventory is 

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

has decreased by 77 percent, from 53 to 12, thus reducing its responsibility for maintenance and 

renovation.

C-25
IMPACT AID

Construction

(Elementary and Secondary Education Act, Title VIII, section 8007)

(dollars in thousands)

FY 2016 Authorization: To be determined 1

Budget Authority: 

2015 2016 Change

$17,406 $17,406 0

_________________

1 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2016.

PROGRAM DESCRIPTION

The Department makes formula and competitive grants under Section 8007 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 8007(a) and 60 percent for competitive 

grants under section 8007(b). However, Congress has routinely overridden 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 and 2015, but formula grants in fiscal year 

2014. 

Formula grants (section 8007(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.

One-half of the formula funds are paid to eligible LEAs on behalf of students residing on Indian 

lands and one-half is paid to eligible LEAs on behalf of students whose parents are in the 

uniformed services. 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 

C-26
IMPACT AID

Construction

whose parents are in the uniformed services, as specified in the regular Basic Support 

Payments formula.

Competitive grants (section 8007(b))

The authorizing statute establishes the following priorities for awarding competitive construction 

grants:

First priority is given to emergency grants for 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.

Second in priority are emergency grants for:

• school districts that receive a payment under the Basic Support Payment formula and: 

(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 operated by an LEA that would otherwise be eligible for an 

emergency grant; (2) have at least 40 percent federally connected students residing on 

Indian lands or 40 percent federally connected military students; and (3) are operated by an 

LEA that has used 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 in priority are 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 in priority are 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) have used 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) have used 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 operated by an LEA that would otherwise be eligible for a 

modernization grant; (2) have at least 40 percent federally connected students residing on 

Indian lands or 40 percent federally connected military students; and (3) are operated by an 

LEA that has used 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.

C-27
IMPACT AID

Construction

Construction funds are awarded on a competitive basis under the four priorities listed above. 

Within each of the four priorities, grants are awarded based on:

• 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, and 

modernization grants are awarded, in part, based on the severity of the need for modernization.

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. Since 2002, competitive grants 

have been awarded to districts only under the first priority. 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)

2011 ........................................................................................ $17,474

2012 .......................................................................................... 17,441

2013 .......................................................................................... 16,529

2014 .......................................................................................... 17,406

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

FY 2016 BUDGET REQUEST

For fiscal year 2016, the Administration requests $17.4 million for Construction, the same as the 

2015 level. The Administration will seek appropriations language that would require all funds be 

used for competitive grants and to be available for 2 years, a continuation of policy enacted for 

2015. 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.

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

affected local educational agencies 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; 

C-28
IMPACT AID

Construction

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)

Measures 2014 2015 2016

Formula Grants $17,406,000 0 0

 ants:Number of LEAs receiving formula 

payments 172 0 0

 rants:Average LEA payment $101,198 0 0

 rants:Range of payments $1,019–

$1,799,482

0 0

 rants:Average payment per student 0 0 0

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

e Grants:Number of LEAs receiving competitive 

awards 0 6–10 6–10

e Grants:Range of payments

0

$50,000–

$5,000,000

$50,000–

$5,000,000

e Grants:Peer review of new award applications 0 $5,000 $5,000

_________________

NOTE: The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved 

under section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. While the Department did not reserve funds from the Construction program under this authority in fiscal 

year 2014, it may do so in fiscal years 2015 and 2016.

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 

FY 2016 and future 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: Improve the quality of public school facilities used to educate federally connected 

C-29
IMPACT AID

Construction

children.

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

school buildings is adequate.

Year Target Actual

2011 70% 71%

2012 70 74

2013 70 62

2014 70 70

2015 70

2016 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

2011 250 N/A

2012 250 158

2013 250

2014 250 N/A

2015 250

2016 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. There are no data for 2011 and 2014 because the competitive grant program was not 

funded in those years. Targets for 2013, 2015 and 2016 have been set for 250 days. The 

2013 grant competition concluded in fall 2013 and two grantees have yet to award contracts.

Performance data will not be available until every LEA has awarded a contract. The average 

number of days elapsed for the 2013 grantees that have awarded contracts is 132 days

C-30
IMPACT AID

Construction

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

application year.

Year Target Actual

2011 90% 99%

2012 90 N/A

2013 90 N/A

2014 90 0

2015 90 N/A

2016 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 2012, 2013 and 2015 because no funding was appropriated 

for formula grants for those years. 94.2 percent of FY 2014 Construction payments were made 

on August 5th, 2014.

C-31
IMPACT AID

Payments for Federal property

(Elementary and Secondary Education Act, Title VIII, section 8002)

(dollars in thousands)

FY 2016 Authorization: 0 1

Budget Authority: 

2015 2016 Change

$66,813 0 -$66,813 _____________________

1

 The GEPA extension expired September 30, 2008. No appropriations language or reauthorizing legislation is 

sought for FY 2016.

PROGRAM DESCRIPTION

The Department of Education makes Payments for Federal Property under section 8002(b) 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. Section 8002 of the 

ESEA was recently amended by Section 563 of the National Defense Authorization Act (NDAA) 

for fiscal year 2013 (P.L. 112-239), making changes with respect to applications submitted for 

fiscal years 2010 through 2015. The NDAA amendments apply through fiscal year 2015, after

which point the program will revert to current law. The following descriptions explain formula 

calculations under the underlying ESEA statute and under NDAA amendments:

ESEA Statute (applicable before fiscal year 2010 and after fiscal year 2015)

If fully funded, the funding 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 estimated current aggregate assessed value of the Federal property, as 

determined by the local tax assessor, based on the highest and best use of adjacent property.

However, when full funding is not provided, as in recent years, payments are based on a “holdharmless” formula designed to preserve historic funding levels for individual LEAs.

• 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 eligible for a section 8002 payment for any fiscal year from 1989 to 1994 in an 

amount that is equal to 38 percent of the maximum payment for which they were eligible for 

1994 (or, for LEAs not eligible in 1994, the latest year for which they were eligible).

• Second, payments are made to 1995 grant recipients in an amount equal to the product of: 

(1) the difference between the appropriation level in 1995 and the total amount of foundation 

payments in the current year; and (2) the LEA’s prorated share of the assessed value of 

eligible Federal property for fiscal year 1995.

C-32
IMPACT AID

Payments for Federal property

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

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

• Fourth, 25 percent of the remaining funds is distributed based on pro-rata shares of the 

foundation payments under the first step, and 75 percent is distributed based on pro-rata 

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 (8003(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 holdharmless provisions, the reduced funds are redistributed under the fourth payment step.

NDAA Amendments (applicable in fiscal years 2010 through 2015)

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.

When, as in recent years, full funding is not provided, payments are based on a “hold-harmless” 

formula designed to preserve historic funding levels for individual LEAs.

• 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, 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.

Under the NDAA amendments, the two caps on payments described earlier would only apply to 

remaining funds under the fourth step for “old districts” (those with fiscal year 2009 eligibility),

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.

C-33
IMPACT AID

Payments for Federal property

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2011 ........................................................................................ $67,074

2012 .......................................................................................... 66,947

2013 .......................................................................................... 63,445

2014 .......................................................................................... 66,813

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

FY 2016 BUDGET REQUEST

The Administration requests no funds for Payments for Federal Property in 2016. It is the 

Administration’s policy to use available Impact Aid funds to help pay for the education of 

federally connected children and fund programs that serve federally connected children. 

Payments for Federal Property compensates LEAs for lost property tax revenue due the 

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

connected children as a result of the Federal presence. 

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

which 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—more than 60 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.

C-34
IMPACT AID

Payments for Federal property

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2014 2015 2016

Number of LEAs receiving payments 216 216 0

Average payment $309,319 $309,319 0

Range of payments $150–

$5,000,000

$150–

$5,000,000

0

_________________

NOTE: The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved 

under section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. While the Department did not reserve funds from the Payments for Federal Property program under this 

authority in fiscal year 2014, it may do so in fiscal year 2015.

C-35
IMPACT AID

Payments for Federal property

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 8002 Payments for Federal Property to disburse funds accurately 

and efficiently under the statutory formula.

Measure: The percentage of eligible Section 8002 applicants reviewed during the year.

Year Target Actual

2011 33.3% 14%

2012 33.3 94

2013 33.3

2014 33.3

2015 33.3

Additional information: This performance measure is no longer applicable as the result of 

changes in regulations as well as changes resulting from amendments made in the National 

Defense Authorization Act (NDAA). The goal for the old measure was for the Department to 

review and verify assessed values for one-third of all applicants each year. A new measure that 

reflects the current process of reviewing section 8002 applicants will be developed this year.

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

second quarter.

Year Target Actual

2011 75% 66%

2012 75 76

2013 75 0

2014 75 8

2015 75

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

initial payments to eligible LEAs by the end of the second quarter. The target was met in fiscal 

year 2012 for the first time in 4 years as the Department continued to make steady improvement 

since 2009, increasing the percentage of initial payments made by the end of the second quarter 

C-36
IMPACT AID

Payments for Federal property

from 9 percent to 76 percent. For fiscal years 2013 through 2015, all initial payments were put on

hold due to changes in the funding formula resulting from amendments made in the NDAA.

C-37
State Tables

IMPACT AID

Basic Support Payments

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 2,888,702 0 3,734,655 3,734,655 0 

Alaska 105,845,735 0 115,096,829 115,096,829 0 

Arizona 156,307,140 0 165,303,818 165,303,818 0 

Arkansas 325,423 0 452,259 452,259 0 

California 52,360,597 0 60,894,902 60,894,902 0 

Colorado 12,254,891 0 15,189,963 15,189,963 0 

Connecticut 5,054,122 0 6,379,834 6,379,834 0 

Delaware 45,160 0 53,678 53,678 0 

District of Columbia 1,252,790 0 1,693,536 1,693,536 0 

Florida 7,949,242 0 9,235,085 9,235,085 0 

Georgia 20,090,657 0 21,298,167 21,298,167 0 

Hawaii 37,137,795 0 35,690,239 35,690,239 0 

Idaho 7,181,607 0 6,433,673 6,433,673 0 

Illinois 19,205,385 0 18,457,840 18,457,840 0 

Indiana 140,111 0 142,884 142,884 0 

Iowa 393,787 0 647,285 647,285 0 

Kansas 20,547,706 0 24,481,373 24,481,373 0 

Kentucky 553,075 0 759,794 759,794 0 

Louisiana 7,373,155 0 9,403,288 9,403,288 0 

Maine 2,524,439 0 2,783,792 2,783,792 0

Maryland 4,356,327 0 5,740,727 5,740,727 0 

Massachusetts 778,310 0 860,741 860,741 0 

Michigan 3,874,995 0 4,705,117 4,705,117 0 

Minnesota 14,482,252 0 17,534,611 17,534,611 0 

Mississippi 1,718,032 0 1,871,618 1,871,618 0 

Missouri 21,362,193 0 20,685,495 20,685,495 0 

Montana 41,012,608 0 42,043,348 42,043,348 0 

Nebraska 19,619,699 0 17,044,438 17,044,438 0 

Nevada 3,264,890 0 4,413,495 4,413,495 0 

New Hampshire 12,061 0 10,824 10,824 0 

New Jersey 13,682,873 0 13,290,586 13,290,586 0 

New Mexico 89,785,419 0 104,766,351 104,766,351 0 

New York 15,440,559 0 21,587,174 21,587,174 0 

North Carolina 12,760,504 0 16,456,301 16,456,301 0 

North Dakota 26,838,244 0 30,454,393 30,454,393 0 

Ohio 2,098,363 0 2,444,548 2,444,548 0 

Oklahoma 36,250,227 0 44,577,161 44,577,161 0 

Oregon 2,543,024 0 3,203,960 3,203,960 0 

Pennsylvania 1,188,467 0 1,538,475 1,538,475 0 

Rhode Island 2,275,632 0 2,099,155 2,099,155 0 

South Carolina 1,844,787 0 2,027,700 2,027,700 0 

South Dakota 45,115,827 0 46,385,299 46,385,299 0 

Tennessee 3,283,632 0 3,939,771 3,939,771 0 

Texas 88,093,879 0 85,707,439 85,707,439 0 

Utah 8,224,905 0 10,288,544 10,288,544 0 

Vermont 5,094 0 5,003 5,003 0 

Virginia 34,152,861 0 45,427,119 45,427,119 0 

Washington 47,039,079 0 54,824,191 54,824,191 0 

West Virginia 18,612 0 17,919 17,919 0 

Wisconsin 12,158,774 0 13,307,622 13,307,622 0 

Wyoming 10,803,696 0 11,058,726 11,058,726 0 

American Samoa 0 0 0 0 0 

Guam 41,484 0 71,547 71,547 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 1,797,111 1,797,111 0 

Virgin Islands 166,253 0 215,597 215,597 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 81,809,815 0 0 0 0 

 Total 1,105,534,896 0 1,128,535,000 1,128,535,000 0 

C-38
IMPACT AID

Payments for Children with Disabilities

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 170,640 0 198,970 198,970 0 

Alaska 2,566,410 0 2,663,423 2,663,423 0 

Arizona 4,785,902 0 5,333,076 5,333,076 0 

Arkansas 105,280 0 99,806 99,806 0 

California 3,461,302 0 3,851,404 3,851,404 0 

Colorado 768,850 0 941,801 941,801 0 

Connecticut 197,690 0 204,766 204,766 0 

Delaware 21,230 0 30,020 30,020 0 

District of Columbia 20,740 0 19,229 19,229 0 

Florida 1,419,210 0 1,489,613 1,489,613 0 

Georgia 914,690 0 969,535 969,535 0 

Hawaii 1,283,200 0 1,265,116 1,265,116 0 

Idaho 300,870 0 303,720 303,720 0 

Illinois 394,820 0 344,712 344,712 0 

Indiana 0 0 0 0 0 

Iowa 22,220 0 32,069 32,069 0 

Kansas 782,620 0 940,158 940,158 0 

Kentucky 115,160 0 125,892 125,892 0 

Louisiana 433,590 0 457,036 457,036 0 

Maine 133,770 0 161,048 161,048 0 

Maryland 634,682 0 641,868 641,868 0 

Massachusetts 53,750 0 44,880 44,880 0 

Michigan 207,920 0 216,522 216,522 0 

Minnesota 708,790 0 888,410 888,410 0 

Mississippi 175,480 0 199,686 199,686 0 

Missouri 448,080 0 496,922 496,922 0 

Montana 1,283,572 0 1,377,147 1,377,147 0 

Nebraska 529,240 0 561,047 561,047 0 

Nevada 426,130 0 491,187 491,187 0 

New Hampshire 920 0 0 0 0 

New Jersey 242,804 0 285,519 285,519 0 

New Mexico 3,204,620 0 3,498,373 3,498,373 0 

New York 289,030 0 337,877 337,877 0 

North Carolina 1,347,920 0 1,506,438 1,506,438 0 

North Dakota 810,976 0 866,884 866,884 0 

Ohio 158,030 0 168,442 168,442 0 

Oklahoma 2,767,050 0 3,017,029 3,017,029 0 

Oregon 169,720 0 137,248 137,248 0 

Pennsylvania 26,330 0 28,129 28,129 0 

Rhode Island 67,480 0 41,861 41,861 0 

South Carolina 358,780 0 369,353 369,353 0 

South Dakota 1,443,620 0 1,541,305 1,541,305 0 

Tennessee 297,100 0 333,170 333,170 0 

Texas 3,099,420 0 3,331,896 3,331,896 0 

Utah 460,840 0 544,624 544,624 0 

Vermont 0 0 0 0 0 

Virginia 3,531,224 0 4,236,074 4,236,074 0 

Washington 2,344,183 0 2,727,249 2,727,249 0 

West Virginia 6,010 0 8,861 8,861 0 

Wisconsin 818,740 0 926,274 926,274 0 

Wyoming 308,240 0 346,331 346,331 0 

American Samoa 0 0 0 0 0 

Guam 0 0 0 0 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 0 0 0 

Virgin Islands 0 0 0 0 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 4,482,954 0 0 0 0 

 Total 48,601,829 0 48,602,000 48,602,000 0 

IMPACT AID

C-39
Construction

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 0 0 0 0 0 

Alaska 0 4,432,099 0 0 0 

Arizona 0 7,189,010 0 0 0 

Arkansas 0 0 0 0 0 

California 0 1,428,374 0 0 0 

Colorado 0 1,031,392 0 0 0 

Connecticut 0 0 0 0 0 

Delaware 0 0 0 0 0 

District of Columbia 0 0 0 0 0 

Florida 0 0 0 0 0 

Georgia 0 1,611,497 0 0 0 

Hawaii 0 0 0 0 0 

Idaho 0 94,216 0 0 0 

Illinois 0 654,425 0 0 0 

Indiana 0 0 0 0 0 

Iowa 0 0 0 0 0 

Kansas 0 1,489,656 0 0 0 

Kentucky 0 0 0 0 0 

Louisiana 0 173,832 0 0 0 

Maine 0 57,077 0 0 0 

Maryland 0 0 0 0 0 

Massachusetts 0 0 0 0 0 

Michigan 0 23,776 0 0 0 

Minnesota 0 651,740 0 0 0 

Mississippi 0 0 0 0 0 

Missouri 0 1,180,740 0 0 0 

Montana 0 1,589,675 0 0 0 

Nebraska 0 850,841 0 0 0 

Nevada 0 0 0 0 0 

New Hampshire 0 0 0 0 0 

New Jersey 0 239,931 0 0 0 

New Mexico 0 4,254,203 0 0 0 

New York 0 620,394 0 0 0 

North Carolina 0 0 0 0 0 

North Dakota 0 1,184,020 0 0 0 

Ohio 0 0 0 0 0 

Oklahoma 0 108,809 0 0 0 

Oregon 0 0 0 0 0 

Pennsylvania 0 0 0 0 0 

Rhode Island 0 0 0 0 0 

South Carolina 0 0 0 0 0 

South Dakota 0 1,655,113 0 0 0 

Tennessee 0 0 0 0 0 

Texas 0 6,760,548 0 0 0 

Utah 0 19,197 0 0 0 

Vermont 0 0 0 0 0 

Virginia 0 0 0 0 0 

Washington 0 1,477,424 0 0 0 

West Virginia 0 0 0 0 0 

Wisconsin 0 415,012 0 0 0 

Wyoming 0 405,711 0 0 0 

American Samoa 0 0 0 0 0 

Guam 0 0 0 0 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 0 0 0 

Virgin Islands 0 0 0 0 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 17,508,685 60,401,288 17,509,000 17,509,000 0 

 Total 17,508,685 100,000,000 17,509,000 17,509,000 0 

C-40