The Impact Aid Program Statute

(Title VIII of the Elementary and Secondary Education Act of 1965),

SEC. 8007. [20 U.S.C. 7707] CONSTRUCTION.

(a) CONSTRUCTION PAYMENTS AUTHORIZED. –

(1) IN GENERAL. –From 40 percent of the amount appropriated for each fiscal year under 

section 8014(e), the Secretary shall make payments in accordance with this subsection 

to each local educational agency that receives a basic support payment under section 

8003(b) for that fiscal year.

(2) ADDITIONAL REQUIREMENTS. –A local educational agency that receives a basic 

support payment under section 8003(b)(1) shall also meet at least one of the following 

requirements:

(A) The number of children determined under section 8003(a)(1)(C) for the agency for 

the preceding school year constituted at least 50 percent of the total student 

enrollment in the schools of the agency during the preceding school year.

(B) The number of children determined under subparagraphs (B) and (D)(i) of section 

8003(a)(1) for the agency for the preceding school year constituted at least 50 

percent of the total student enrollment in the schools of the agency during the 

preceding school year.

(3) AMOUNT OF PAYMENTS. –

(A) LOCAL EDUCATIONAL AGENCIES IMPACTED BY MILITARY DEPENDENT 

CHILDREN. –The amount of a payment to each local educational agency described 

in this subsection that is impacted by military dependent children for a fiscal year 

shall be equal to 

(i) (I) 20 percent of the amount appropriated under section 8014(e) for such fiscal 

year; divided by

(II) the total number of weighted students units of children described in 

subparagraphs (B) and (D)(i) of section 8003(a)(1) for all local educational 

agencies described in this subsection (as calculated under section 

8003(a)(2)), including the number of weighted student units of such children 

attending a school facility described in section 8008(a) if the Secretary does 

not provide assistance for the school facility under that section for the prior 

fiscal year; multiplied by

(ii) the total number of such weighted student units for the agency.

(B) LOCAL EDUCATIONAL AGENCIES IMPACTED BY CHILDREN WHO RESIDE ON 

INDIAN LANDS. –The amount of a payment to each local educational agency 

described in this subsection that is impacted by children who reside on Indian lands 

for a fiscal year shall be equal to—

(i) (I) 20 percent of the amount appropriated under section 8014(e) for such fiscal 

year; divided by

(II) the total number of weighted student units of children described in section 

8003(a)(1)(C) for all local educational agencies described in this subsection 

(as calculated under section 8003(a)(2); multiplied by

(ii) the total number of such weighted student units for the agency.

(4) USE OF FUNDS. –Any local educational agency that receives funds under this 

subsection shall use such funds for construction, as defined in section 8013(3).

(b) SCHOOL FACILITY EMERGENCY AND MODERNIZATION GRANTS AUTHORIZED-

(1) IN GENERAL- From 60 percent of the amount appropriated for each fiscal year under 

section 8014(e), the Secretary —

(B) shall award emergency grants in accordance with this subsection to eligible local 

educational agencies to enable the agencies to carry out emergency repairs of school 

facilities; and
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(C) shall award modernization grants in accordance with this subsection to eligible local 

educational agencies to enable the agencies to carry out the modernization of school 

facilities.

(2) PRIORITY- In approving applications from local educational agencies for emergency grants 

and modernization grants under this subsection, the Secretary shall give priority to 

applications in accordance with the following:

(A) The Secretary shall first give priority to applications for emergency grants from local 

educational agencies that meet the requirements of paragraph (3)(A) and, among such 

applications for emergency grants, shall give priority to those applications of local 

educational agencies based on the severity of the emergency, as determined by the 

Secretary.

(B) The Secretary shall next give priority to applications for emergency grants from local 

educational agencies that meet the requirements of subparagraph (C) or (D) of 

paragraph (3) and, among such applications for emergency grants, shall give priority to 

those applications of local educational agencies based on the severity of the emergency, 

as determined by the Secretary.

(C) The Secretary shall next give priority to applications for modernization grants from local 

educational agencies that meet the requirements of paragraph (3)(B) and, among such 

applications for modernization grants, shall give priority to those applications of local 

educational agencies based on the severity of the need for modernization, as 

determined by the Secretary.

(D) The Secretary shall next give priority to applications for modernization grants from local 

educational agencies that meet the requirements of subparagraph (C) or (D) of 

paragraph (3) and, among such applications for modernization grants, shall give priority 

to those applications of local educational agencies based on the severity of the need for 

modernization, as determined by the Secretary.

(3) ELIGIBILITY REQUIREMENTS-

(A) EMERGENCY GRANTS- A local educational agency is eligible to receive an emergency 

grant under paragraph (2)(A) if —

(i) the agency (or in the case of a local educational agency that does not have the 

authority to tax or issue bonds, the agency's fiscal agent) —

(I) has no practical capacity to issue bonds;

(II) has minimal capacity to issue bonds and is at not less than 75 percent of the 

agency's limit of bonded indebtedness; or

(III) does not meet the requirements of subclauses (I) and (II) but is eligible to receive 

funds under section 8003(b)(2) for the fiscal year; and

(ii) the agency is eligible to receive assistance under subsection (a) for the fiscal year 

and has a school facility emergency, as determined by the Secretary, that poses a 

health or safety hazard to the students and school personnel assigned to the school 

facility.

(B) MODERNIZATION GRANTS- A local educational agency is eligible to receive a 

modernization grant under paragraph (2)(C) if —

(i) the agency is eligible to receive assistance under this title for the fiscal year;

(ii) the agency (or in the case of a local educational agency that does not have the 

authority to tax or issue bonds, the agency's fiscal agent) meets the requirements 

of subclause (I), (II), or (III) of subparagraph (A)(i); and

(iii) the agency has facility needs resulting from the presence of the Federal 

Government, such as the enrollment of federally connected children, the presence 

of tax-exempt Federal property, or an increase in enrollment due to the expansion 

of Federal activities, housing privatization, or the acquisition of Federal property.

(C) ADDITIONAL ELIGIBILITY FOR EMERGENCY AND MODERNIZATION GRANTS- (i) A 

local educational agency is eligible to receive an emergency grant or a modernization 

grant under subparagraph (B) or (D) of paragraph (2), respectively, if the agency meets 

the following requirements:
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(I) The agency receives a basic support payment under section 8003(b) for the fiscal 

year and the agency meets at least one of the following requirements:

(aa) The number of children determined under section 8003(a)(1)(C) for the 

agency for the preceding school year constituted at least 40 percent of the 

total student enrollment in the schools of the agency during the preceding 

school year.

(bb) The number of children determined under subparagraphs (B) and (D)(i) of 

section 8003(a)(1) for the agency for the preceding school year constituted 

at least 40 percent of the total student enrollment in the schools of the 

agency during the preceding school year.

(II) The agency (or in the case of a local educational agency that does not have the 

authority to tax or issue bonds, the agency's fiscal agent) is at not less than 75 

percent of the agency's limit of bonded indebtedness.

(III) The agency has an assessed value of real property per student that may be 

taxed for school purposes that is less than the average of the assessed value of 

real property per student that may be taxed for school purposes in the State in 

which the local educational agency is located.

(ii) A local educational agency is also eligible to receive a modernization grant under this 

subparagraph if the agency is eligible to receive assistance under section 8002 for the 

fiscal year and meets the requirements of subclauses (II) and (III) of clause (i).

(D) SPECIAL RULE-

(i) IN GENERAL- Any school described in clause (ii) that desires to receive an 

emergency grant or a modernization grant under subparagraph (B) or (D) of 

paragraph (2), respectively, shall, except as provided in the following sentence,

submit an application in accordance with paragraph (6), and shall otherwise be 

treated as a local educational agency for the purpose of this subsection. The school 

shall submit an application for the grant to the local educational agency of such 

school and the agency shall submit the application on behalf of the school to the 

Secretary.

(ii) SCHOOL DESCRIBED- A school described in this clause is a school that meets the 

following requirements:

(I) The school is located within the geographic boundaries of a local 

educational agency that does not meet the applicable eligibility 

requirements under subparagraph (A), (B), or (C) for a grant under this 

subsection.

(II) The school meets at least one of the following requirements:

(aa) The number of children determined under section 8003(a)(1)(C) for the 

school for the preceding school year constituted at least 40 percent of the 

total student enrollment in the school during the preceding school year. 

(bb) The number of children determined under subparagraphs (B) and (D)(i) of 

section 8003(a)(1) for the school for the preceding school year constituted at 

least 40 percent of the total student enrollment in the school during the 

preceding school year. 

(III) The school is located within the geographic boundaries of a local educational 

agency that meets the requirements of subclauses (II) and (III) of subparagraph 

(C)(i).

(E) RULE OF CONSTRUCTION- For purposes of subparagraph (A)(i), a local 

educational agency —

(i) has no practical capacity to issue bonds if the total assessed value of real 

property that may be taxed for school purposes is less than $25,000,000; 

and
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(ii) has minimal capacity to issue bonds if the total assessed value of real 

property that may be taxed for school purposes is at least $25,000,000 but 

not more than $50,000,000.

(4) AWARD CRITERIA- In awarding emergency grants and modernization grants under this 

subsection, the Secretary shall consider the following factors:

(A) The ability of the local educational agency to respond to the emergency, or to pay 

for the modernization project, as the case may be, as measured by —

(i) the agency's level of bonded indebtedness;

(ii) the assessed value of real property per student that may be taxed for school 

purposes compared to the average of the assessed value of real property per 

student that may be taxed for school purposes in the State in which the agency 

is located;

(iii) the agency's total tax rate for school purposes (or, if applicable, for capital 

expenditures) compared to the average total tax rate for school purposes (or 

the average capital expenditure tax rate, if applicable) in the State in which the 

agency is located; and

(iv) funds that are available to the agency, from any other source, including 

subsection (a), that may be used for capital expenditures.

(B) The percentage of property in the agency that is nontaxable due to the presence 

of the Federal Government.

(C) The number and percentages of children described in subparagraphs (A), (B), (C), 

and (D) of section 8003(a)(1) served in the school facility with the emergency or 

served in the school facility proposed for modernization, as the case may be.

(D) In the case of an emergency grant, the severity of the emergency, as measured 

by the threat that the condition of the school facility poses to the health, safety, and 

well-being of students.

(E) In the case of a modernization grant —

(i) the severity of the need for modernization, as measured by such factors as —

(I) overcrowding, as evidenced by the use of portable classrooms, or the 

potential for future overcrowding because of increased enrollment; or

(II) the agency's inability to utilize technology or offer a curriculum in 

accordance with contemporary State standards due to the physical 

limitations of the current school facility; and

(ii) the age of the school facility proposed for modernization.

(5) OTHER AWARD PROVISIONS-

(A) GENERAL PROVISIONS-

(i) LIMITATIONS ON AMOUNT OF FUNDS-

(I) IN GENERAL- The amount of funds provided under an emergency grant or a 

modernization grant awarded under this subsection to a local educational 

agency that meets the requirements of subclause (II) or (III) of paragraph 

(3)(A)(i) for purposes of eligibility under subparagraph (A) or (B) of paragraph 

(3) or that meets the requirements of clause (i) or (ii) of paragraph (3)(C) for 

purposes of eligibility under such paragraph (3)(C), or to a school that is 

eligible under paragraph (3)(D) —

(aa) shall not exceed 50 percent of the total cost of the project to be 

assisted under this subsection; and 

(bb) shall not exceed $4,000,000 during any 4-year period. 

(II) IN-KIND CONTRIBUTIONS- A local educational agency may use in-kind 

contributions to meet the matching requirement of subclause (I)(aa).

(ii) PROHIBITIONS ON USE OF FUNDS- A local educational agency may not use 

funds provided under an emergency grant or modernization grant awarded under 

this subsection for —

(I) a project for a school facility for which the agency does not have full title or 

other interest;
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(II) stadiums or other school facilities that are primarily used for athletic contests, 

exhibitions, or other events for which admission is charged to the general 

public; or

(III) the acquisition of real property.

(iii) SUPPLEMENT, NOT SUPPLANT- A local educational agency shall use funds 

provided under an emergency grant or modernization grant awarded under this 

subsection only to supplement the amount of funds that would, in the absence of 

the Federal funds provided under the grant, be made available from non-Federal 

sources to carry out emergency repairs of school facilities or to carry out the 

modernization of school facilities, as the case may be, and not to supplant such 

funds.

(iv) MAINTENANCE COSTS- Nothing in this subsection shall be construed to 

authorize the payment of maintenance costs in connection with any school facility 

modernized in whole or in part with Federal funds provided under this subsection.

(v) ENVIRONMENTAL SAFEGUARDS- All projects carried out with Federal funds 

provided under this subsection shall comply with all relevant Federal, State, and 

local environmental laws and regulations.

(vi) CARRY-OVER OF CERTAIN APPLICATIONS- A local educational agency that 

applies for an emergency grant or a modernization grant under this subsection for 

a fiscal year and does not receive the grant for the fiscal year shall have the 

application for the grant considered for the following fiscal year, subject to the 

priority requirements of paragraph (2) and the award criteria requirements of 

paragraph (4).

(B) EMERGENCY GRANTS; PROHIBITION ON USE OF FUNDS- A local educational 

agency that is awarded an emergency grant under this subsection may not use 

amounts under the grant for the complete or partial replacement of an existing school 

facility unless such replacement is less expensive or more cost-effective than 

correcting the identified emergency.

(6) APPLICATION- A local educational agency that desires to receive an emergency grant or a 

modernization grant under this subsection shall submit an application to the Secretary at such 

time, in such manner, and accompanied by such information as the Secretary may require. 

Each application shall contain the following:

(A) A description of how the local educational agency meets the award criteria under 

paragraph (4), including the information described in clauses (i) through (iv) of paragraph 

(4)(A) and subparagraphs (B) and (C) of paragraph (4).

(B) In the case of an application for an emergency grant —

(i) a description of the school facility deficiency that poses a health or safety hazard to the 

occupants of the facility and a description of how the deficiency will be repaired; and

(ii) a signed statement from an appropriate local official certifying that a deficiency in the 

school facility threatens the health or safety of the occupants of the facility or that 

prevents the use of all or a portion of the building.

(C) In the case of an application for a modernization grant —

(i) an explanation of the need for the school facility modernization project;

(ii) the date on which original construction of the facility to be modernized was completed;

(iii) a listing of the school facilities to be modernized, including the number and percentage 

of children determined under section 8003(a)(1) in average daily attendance in each 

school facility; and

(iv) a description of the ownership of the property on which the current school facility is 

located or on which the planned school facility will be located.

(D) A description of the project for which a grant under this subsection will be used, including a 

cost estimate for the project.

(E) A description of the interest in, or authority over, the school facility involved, such as an 

ownership interest or a lease arrangement.

(F) Such other information and assurances as the Secretary may reasonably require.

(7) REPORT-
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(A) IN GENERAL- Not later than January 1 of each year, the Secretary shall prepare and 

submit to the appropriate congressional committees a report that contains a 

justification for each grant awarded under this subsection for the prior fiscal year.

(B) DEFINITION- In this paragraph, the term appropriate congressional committees' 

means —

(i) the Committee on Appropriations and the Committee on Education and the 

Workforce of the House of Representatives; and

(ii) the Committee on Appropriations and the Committee on Health, Education, Labor, 

and Pensions of the Senate.