IB
Union Calendar No. 283
106TH CONGRESS
2D SESSION
H. R. 3616
[Report No. 106–504]
To reauthorize the impact aid program under the Elementary and Secondary
Education Act of 1965, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 10, 2000
Mr. HAYES (for himself, Mr. GOODLING, Mr. GREENWOOD, Mr. SCOTT, Mr.
EDWARDS, 
Mr. 
POMEROY, 
Mr. 
HAYWORTH, 
Mr. 
KILDEE, 
Mr.
CUNNINGHAM, Mr. THORNBERRY, Mr. MCHUGH, Mr. BILBRAY, Mr.
MCCRERY, 
Mrs. 
KELLY, 
Mr. 
JONES
of 
North 
Carolina, 
Mr.
KUYKENDALL, Mr. HEFLEY, Mr. YOUNG of Alaska, Mr. CHAMBLISS, Mr.
MCKEON, Mr. FLETCHER, Mr. GIBBONS, Mr. NETHERCUTT, Mrs.
CUBIN, Mr. KENNEDY of Rhode Island, Mr. SKELTON, Mr. MCINTYRE,
Mr. SAXTON, Mr. CALVERT, Mr. WHITFIELD, Mr. PORTER, Mr. PACK-
ARD, Mrs. BONO, Mr. ROHRABACHER, Mr. TERRY, Mr. TANCREDO, and
Mr. STUMP) introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce
FEBRUARY 29, 2000
Additional sponsors: Mr. COSTELLO, Mr. TAYLOR of Mississippi, Mr. BATE-
MAN, Mr. CLEMENT, Mr. SMITH of New Jersey, Mrs. MCCARTHY of New
York, Mr. GILMAN, Mrs. EMERSON, Mr. DICKS, Mr. HASTINGS of Wash-
ington, Mr. GALLEGLY, Mr. PETERSON of Minnesota, Mr. REYES, Mr.
THOMAS, Mr. RODRIGUEZ, Mr. DOOLEY of California, Mr. RYUN of Kan-
sas, Mr. PICKETT, Mr. HILLEARY, Mr. OSE, Mr. WEYGAND, Mr.
METCALF, Mr. LEWIS of Kentucky, Mr. BARRETT of Nebraska, Mr.
SMITH of Washington, Ms. WOOLSEY, Mrs. BIGGERT, Mr. GEJDENSON,
Mr. BISHOP, Mr. HOEFFEL, Mr. THUNE, Mr. UDALL of New Mexico, Mr.
BROWN of Ohio, Mr. GONZALEZ, and Mr. HALL of Ohio
FEBRUARY 29, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 10, 2000]
A BILL
To reauthorize the impact aid program under the Elementary
and Secondary Education Act of 1965, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Impact Aid Reauthor-
ization Act of 2000’’.
SEC. 2. PURPOSE.
Section 8001 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7701) is amended—
(1) in the matter preceding paragraph (1)—
(A) by inserting after ‘‘educational services
to federally connected children’’ the following:
‘‘in a manner that promotes control by local
educational agencies with little or no Federal or
State involvement’’; and
(B) by inserting after ‘‘certain activities of
the Federal Government’’ the following: ‘‘, such
as activities to fulfill the responsibilities of the
Federal Government with respect to Indian
tribes and activities under section 514 of the Sol-
diers’ and Sailors’ Civil Relief Act of 1940 (50
U.S.C. App. 574),’’;
(2) in paragraph (4), by adding ‘‘or’’ at the end;
(3) by striking paragraph (5);
(4) by redesignating paragraph (6) as para-
graph (5); and
(5) in paragraph (5) (as redesignated), by in-
serting before the period at the end the following:
‘‘and because of the difficulty of raising local revenue
through bond referendums for capital projects due to
the inability to tax Federal property’’.
SEC. 3. PAYMENTS RELATING TO FEDERAL ACQUISITION OF
REAL PROPERTY.
(a) FISCAL YEAR REQUIREMENT.—Section 8002(a) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7702(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘1999’’ and inserting ‘‘2005’’.
(b) AMOUNT.—
(1) 
INSUFFICIENT
FUNDS.—Section
8002(b)(1)(B) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7702(b)(1)(B)) is
amended by striking ‘‘shall ratably reduce the pay-
ment to each eligible local educational agency’’ and
inserting ‘‘shall calculate the payment for each eligi-
ble local educational agency in accordance with sub-
section (h)’’.
(2) MAXIMUM AMOUNT.—Section 8002(b)(1)(C)
of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7702(b)(1)(C)) is amended by adding
at the end before the period the following: ‘‘, or the
maximum amount that such agency is eligible to re-
ceive for such fiscal year under this section, whichever
is greater’’.
(c) PAYMENTS WITH RESPECT TO FISCAL YEARS IN
WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—Sec-
tion 8002(h) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7702(h)) is amended to read as fol-
lows:
‘‘(h) PAYMENTS WITH RESPECT TO FISCAL YEARS IN
WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—For
any fiscal year for which the amount appropriated under
section 8014(a) is insufficient to pay to each local edu-
cational agency the full amount determined under sub-
section (b), the Secretary shall make payments to each local
educational agency under this section as follows:
‘‘(1) FOUNDATION PAYMENTS FOR PRE-1995 RE-
CIPIENTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
first make a foundation payment to each local
educational agency that is eligible to receive a
payment under this section for the fiscal year in-
volved and was eligible to receive a payment
under section 2 of the Act of September 30, 1950
(Public Law 874, 81st Congress) (as such section
was in effect on the day preceding the date of the
enactment of the Improving America’s Schools
Act of 1994) for any of the fiscal years 1989
through 1994.
‘‘(B) AMOUNT.—The amount of a payment
under subparagraph (A) for a local educational
agency shall be equal to 37 percent of the pay-
ment amount the local educational agency was
eligible to receive under section 2 of the Act of
September 30, 1950, for fiscal year 1994 (or if
the local educational agency was not eligible to
receive a payment under such section 2 for fiscal
year 1994, the payment that local educational
agency was eligible to receive under such section
2 for the most recent fiscal year preceding 1994).
‘‘(C) INSUFFICIENT
APPROPRIATIONS.—If
the amount appropriated under section 8014(a)
is insufficient to pay the full amount determined
under this paragraph for all eligible local edu-
cational agencies for the fiscal year, then the
Secretary shall ratably reduce the payment to
each local educational agency under this para-
graph.
‘‘(2) PAYMENTS FOR 1995 RECIPIENTS.—
‘‘(A) IN GENERAL.—From any amounts re-
maining after making payments under para-
graph (1) for the fiscal year involved, the Sec-
retary shall make a payment to each eligible
local educational agency that received a payment
under this section for fiscal year 1995.
‘‘(B) AMOUNT.—The amount of a payment
under subparagraph (A) for a local educational
agency shall be determined as follows:
‘‘(i) Calculate the difference between
the amount appropriated to carry out this
section for fiscal year 1995 and the total
amount of foundation payments made
under paragraph (1) for the fiscal year.
‘‘(ii) Determine the percentage share
for each local educational agency that re-
ceived a payment under this section for fis-
cal year 1995 by dividing the assessed value
of the Federal property of the local edu-
cational agency for fiscal year 1995 deter-
mined in accordance with subsection (b)(3),
by the total national assessed value of the
Federal property of all such local edu-
cational agencies for fiscal year 1995, as so
determined.
‘‘(iii) Multiply the percentage share de-
scribed in clause (ii) for the local edu-
cational agency by the amount determined
under clause (i).
‘‘(3) SUBSECTION (i) RECIPIENTS.—From any
funds remaining after making payments under para-
graphs (1) and (2) for the fiscal year involved, the
Secretary shall make payments in accordance with
subsection (i).
‘‘(4) REMAINING FUNDS.—From any funds re-
maining after making payments under paragraphs
(1), (2), and (3) for the fiscal year involved—
‘‘(A) the Secretary shall make a payment to
each local educational agency that received a
foundation payment under paragraph (1) for the
fiscal year involved in an amount that bears the
same relation to 25 percent of the remainder as
the amount the local educational agency received
under paragraph (1) for the fiscal year involved
bears to the amount all local educational agen-
cies received under paragraph (1) for the fiscal
year involved; and
‘‘(B) the Secretary shall make a payment to
each local educational agency that is eligible to
receive a payment under this section for the fis-
cal year involved in an amount that bears the
same relation to 75 percent of the remainder as
a percentage share determined for the local edu-
cational agency (in the same manner as percent-
age shares are determined for local educational
agencies under paragraph (2)(B)(ii)) bears to the
percentage share determined (in the same man-
ner) for all local educational agencies eligible to
receive a payment under this section for the fis-
cal year involved, except that for the purpose of
calculating a local educational agency’s assessed
value of the Federal property, data from the
most current fiscal year shall be used.’’.
(d) SPECIAL PAYMENTS.—
(1) IN GENERAL.—Section 8002(i)(1) of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 7702(i)(1)) is amended to read as follows:
‘‘(1) IN GENERAL.—For any fiscal year begin-
ning with fiscal year 2000 for which the amount ap-
propriated to carry out this section exceeds the
amount so appropriated for fiscal year 1996 and for
which subsection (b)(1)(B) applies, the Secretary shall
use the remainder described in subsection (h)(3) for
the fiscal year involved (not to exceed the amount
equal to the difference between (A) the amount appro-
priated to carry out this section for fiscal year 1997
and (B) the amount appropriated to carry out this
section for fiscal year 1996) to increase the payment
that would otherwise be made under this section to
not more than 50 percent of the maximum amount
determined under subsection (b) for any local edu-
cational agency described in paragraph (2).’’.
(2) CONFORMING AMENDMENT.—The heading of
section 8002(i) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7702(i)) is amend-
ed by striking ‘‘PRIORITY’’ and inserting SPECIAL’’.
(e) ADDITIONAL ASSISTANCE
FOR CERTAIN LOCAL
EDUCATIONAL AGENCIES IMPACTED BY FEDERAL PROP-
ERTY ACQUISITION.—Section 8002(j)(2) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
7702(j)(2)) is amended—
(1) by striking ‘‘(A) A local educational agency’’
and inserting ‘‘A local educational agency’’;
(2) by redesignating clauses (i) through (v) as
subparagraphs (A) through (E), respectively; and
(3) in subparagraph (C) (as redesignated), by
adding at the end before the semicolon the following:
‘‘and such agency does not currently have a military
installation located within its geographic bound-
aries’’.
(f) DATA; PRELIMINARY AND FINAL PAYMENTS.—Sec-
tion 8002 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7702) is amended by adding at the end
the following:
‘‘(l) DATA; PRELIMINARY AND FINAL PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall—
‘‘(A) not later than 30 days following the
application deadline under section 8005(c) for a
fiscal year, require any local educational agency
that applied for a payment under subsection (b)
for the fiscal year to submit such data as may
be necessary in order to compute the payment;
‘‘(B) as soon as possible after the beginning
of any fiscal year, but no later than 60 days
after the enactment of an Act making appropria-
tions to carry out this title for the fiscal year,
provide a preliminary payment under subsection
(b) for any local educational agency that applied
for a payment under subsection (b) for the fiscal
year and was eligible for such a payment for the
preceding fiscal year, in the amount of 60 per-
cent of the payment for the previous year; and
‘‘(C) provide a final payment under sub-
section (b) for any eligible local educational
agency not later than 12 months after the appli-
cation 
deadline 
established 
under 
section
8005(c), except that any local educational agency
failing to submit all of the data required under
subparagraph (A) shall be denied such payment
for the fiscal year for which the application is
made unless funds from a source other than the
Act described in subparagraph (B) are made
available to provide such payment.
‘‘(2) ELIGIBILITY
FOR
PAYMENTS
IN
SUBSE-
QUENT YEARS.—The denial of a payment under sub-
section (b) to a local educational agency for a fiscal
year pursuant to this subsection shall not affect the
eligibility of the local educational agency for a final
payment under subsection (b) for a subsequent fiscal
year.’’.
SEC. 4. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED
CHILDREN.
(a) MILITARY INSTALLATION HOUSING UNDERGOING
RENOVATION OR REBUILDING.—
(1) IN GENERAL.—Section 8003(a)(4) of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 7703(a)) is amended—
(A) in the heading, by striking ‘‘UNDER-
GOING
RENOVATION’’ and inserting ‘‘UNDER-
GOING RENOVATION OR REBUILDING’’;
(B) by striking ‘‘For purposes’’ and insert-
ing the following:
‘‘(A) IN GENERAL.—For purposes’’;
(C) in subparagraph (A) (as designated by
subparagraph (B)), by inserting ‘‘or rebuilding’’
after ‘‘undergoing renovation’’; and
(D) by adding at the end the following:
‘‘(B) LIMITATIONS.—(i)(I) Except as pro-
vided in subclause (II), children described in
paragraph (1)(D)(i) may be deemed to be chil-
dren described in paragraph (1)(B) with respect
to housing on Federal property undergoing ren-
ovation or rebuilding in accordance with sub-
paragraph (A) for a period not to exceed 2 fiscal
years.
‘‘(II) If the Secretary determines, on the
basis of a certification provided to the Secretary
by a designated representative of the Secretary of
Defense, that the expected completion date of the
renovation or rebuilding of the housing has been
delayed by not less than 1 year, then—
‘‘(aa) in the case of a determination
made by the Secretary in the 1st fiscal year
described in subclause (I), the time period
described such subclause shall be extended
by the Secretary for an additional 2 years;
and
‘‘(bb) in the case of a determination
made by the Secretary in the 2nd fiscal
year described in subclause (I), the time pe-
riod described such subclause shall be ex-
tended by the Secretary for an additional 1
year.
‘‘(ii) The number of children described in
paragraph (1)(D)(i) who are deemed to be chil-
dren described in paragraph (1)(B) with respect
to housing on Federal property undergoing ren-
ovation or rebuilding in accordance with sub-
paragraph (A) for any fiscal year may not ex-
ceed the maximum number of children who are
expected to occupy that housing upon completion
of the renovation or rebuilding.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply with respect to pay-
ments to a local educational agency for fiscal years
beginning before, on, or after the date of the enact-
ment of this Act.
(b) MILITARY ‘BUILD TO LEASE’ PROGRAM HOUS-
ING.—Section 8003(a) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(a)) is amended by
adding at the end the following:
‘‘(5) MILITARY
‘BUILD
TO
LEASE’ PROGRAM
HOUSING.—
‘‘(A) IN GENERAL.—For purposes of com-
puting the amount of payment for a local edu-
cational agency for children identified under
paragraph (1), the Secretary shall consider chil-
dren residing in housing initially acquired or
constructed under the former section 2828(g) of
title 10, United States Code (commonly known
as the ‘Build to Lease’ program), as added by
section 801 of the Military Construction Author-
ization Act, 1984, to be children described under
paragraph (1)(B) if the property described is
within the fenced security perimeter of the mili-
tary facility upon which such housing is situ-
ated.
‘‘(B) ADDITIONAL REQUIREMENTS.—If the
property described in subparagraph (A) is not
owned by the Federal Government, is subject to
taxation by a State or political subdivision of a
State, and thereby generates revenues for a local
educational agency that is applying to receive a
payment under this section, then the Secretary—
‘‘(i) shall require the local educational
agency to provide certification from an ap-
propriate official of the Department of De-
fense that the property is being used to pro-
vide military housing; and
‘‘(ii) shall reduce the amount of the
payment under this section by an amount
equal to the amount of revenue from such
taxation received in the second preceding
fiscal year by such local educational agency,
unless the amount of such revenue was
taken into account by the State for such sec-
ond preceding fiscal year and already re-
sulted in a reduction in the amount of State
aid paid to such local educational agency.’’.
SEC. 5. MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENTS.
Section 8003(b)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)(1)) is amended
by adding at the end the following:
‘‘(D) INCREASE
IN
LOCAL
CONTRIBUTION
RATE
DUE
TO
UNUSUAL
GEOGRAPHIC
FAC-
TORS.—If the current expenditures in those local
educational agencies which the Secretary has de-
termined to be generally comparable to the local
educational agency for which a computation is
made under subparagraph (C) are not reason-
ably comparable because of unusual geographical
factors which affect the current expenditures nec-
essary to maintain, in such agency, a level of
education equivalent to that maintained in such
other agencies, then the Secretary shall increase
the local contribution rate for such agency under
subparagraph (C)(iii) by such an amount which
the Secretary determines will compensate such
agency for the increase in current expenditures
necessitated by such unusual geographical fac-
tors. The amount of any such supplementary
payment may not exceed the per-pupil share
(computed with regard to all children in average
daily attendance), as determined by the Sec-
retary, of the increased current expenditures ne-
cessitated by such unusual geographic factors.’’.
SEC. 6. BASIC SUPPORT PAYMENTS FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.
(a) IN GENERAL.—Section 8003(b) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(b))
is amended—
(1) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) BASIC SUPPORT PAYMENTS FOR HEAVILY
IMPACTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(A) IN GENERAL.—(i) From the amount
appropriated under section 8014(b) for a fiscal
year, the Secretary is authorized to make basic
support payments to eligible heavily impacted
local educational agencies with children de-
scribed in subsection (a).
‘‘(ii) A local educational agency that re-
ceives a basic support payment under this para-
graph for a fiscal year shall not be eligible to re-
ceive a basic support payment under paragraph
(1) for that fiscal year.
‘‘(B) ELIGIBILITY FOR CONTINUING HEAV-
ILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(i) FISCAL YEAR 2001.—A heavily im-
pacted local educational agency is eligible to
receive a basic support payment under sub-
paragraph (A) for fiscal year 2001 with re-
spect to a number of children determined
under subsection (a)(1) only if the agency
received an additional assistance payment
under subsection (f) (as such subsection was
in effect on the day before the date of the en-
actment of the Impact Aid Reauthorization
Act of 2000) for fiscal year 2000.
‘‘(ii) FISCAL
YEAR
2002
AND
SUBSE-
QUENT FISCAL YEARS.—A heavily impacted
local educational agency described in clause
(i) is eligible to receive a basic support pay-
ment under subparagraph (A) for fiscal
year 2002 and any subsequent fiscal year
with respect to a number of children deter-
mined under subsection (a)(1) only if the
agency—
‘‘(I) received a basic support pay-
ment under subparagraph (A) for fis-
cal year 2001; and
‘‘(II)(aa) is a local educational
agency whose boundaries are the same
as a Federal military installation;
‘‘(bb) has an enrollment of feder-
ally connected children described in
subsection (a)(1) which constitutes a
percentage of the total student enroll-
ment of such agency which is not less
than 35 percent, has a per-pupil ex-
penditure that is less than the average
per-pupil expenditure of the State in
which the agency is located or the aver-
age per-pupil expenditure of all States
(whichever average per-pupil expendi-
ture is greater), except that a local
educational agency with a total stu-
dent enrollment of less than 350 stu-
dents shall be deemed to have satisfied
such per-pupil expenditure require-
ment, and has a tax rate for general
fund purposes which is at least 95 per-
cent of the average tax rate for general
fund purposes of comparable local edu-
cational agencies in the State; or
‘‘(cc) has a total student enroll-
ment of not less than 25,000 students,
of which not less than 50 percent are
federally connected children described
in subsection (a)(1) and not less than
6,000 of such federally connected chil-
dren are children described in subpara-
graphs (A) and (B) of subsection
(a)(1).
‘‘(iii) RESUMPTION OF ELIGIBILITY.—
A heavily impacted local educational agen-
cy described in clause (i) or (ii) that be-
comes ineligible under either such clause for
1 or more fiscal years may resume eligi-
bility for a basic support payment under
this paragraph for a subsequent fiscal year
only if the agency meets the requirements of
item (aa), (bb), or (cc) of clause (ii)(II) for
that subsequent fiscal year.
‘‘(C) ELIGIBILITY
FOR
NEW
HEAVILY
IM-
PACTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(i) IN GENERAL.—A heavily impacted
local educational agency that did not re-
ceive an additional assistance payment
under subsection (f) (as such subsection was
in effect on the day before the date of the en-
actment of the Impact Aid Reauthorization
Act of 2000) for fiscal year 2000 is eligible
to receive a basic support payment under
subparagraph (A) for fiscal year 2002 and
any subsequent fiscal year with respect to a
number of children determined under sub-
section (a)(1) only if the agency—
‘‘(I) has an enrollment of federally
connected children described in sub-
section (a)(1) which constitutes a per-
centage of the total student enrollment
of such agency which (aa) is not less
than 50 percent if such agency receives
a payment on behalf of children de-
scribed in subparagraphs (F) and (G)
of such subsection or (bb) is not less
than 40 percent if such agency does not
receive a payment on behalf of such
children;
‘‘(II)(aa) is a local educational
agency whose boundaries are the same
as a Federal military installation; or
‘‘(bb) is a local educational agen-
cy that has a tax rate for general fund
purposes which is at least 95 percent of
the average tax rate for general fund
purposes of comparable local edu-
cational agencies in the State; and
‘‘(III)(aa) for a local educational
agency that has a total student enroll-
ment of 350 or more students, the
agency has a per-pupil expenditure
that is less than the average per-pupil
expenditure of the State in which the
agency is located; or
‘‘(bb) for a local educational agen-
cy that has a total student enrollment
of less than 350 students, the agency
has a per-pupil expenditure that is less
than the average per-pupil expenditure
of a comparable agency in the State in
which the agency is located.
‘‘(ii) RESUMPTION OF ELIGIBILITY.—A
heavily impacted local educational agency
described in clause (i) that becomes ineli-
gible under such clause for 1 or more fiscal
years may resume eligibility for a basic
support payment under this paragraph for
a subsequent fiscal year only if the agency
meets the requirements of subclauses (I),
(II), and (III) of clause (i) for that subse-
quent fiscal year.
‘‘(iii) APPLICATION.—With respect to
the first fiscal year for which a heavily im-
pacted local educational agency described in
clause (i) applies for a basic support pay-
ment under subparagraph (A), or with re-
spect to the first fiscal year for which a
heavily impacted local educational agency
applies for a basic support payment under
subparagraph (A) after becoming ineligible
under clause (i) for 1 or more preceding fis-
cal years, the agency shall apply for such
payment at least 1 year prior to the start
of that first fiscal year.
‘‘(D) MAXIMUM
AMOUNT
FOR
REGULAR
HEAVILY IMPACTED LOCAL EDUCATIONAL AGEN-
CIES.—(i) Except as provided in subparagraph
(E), the maximum amount that a heavily im-
pacted local educational agency is eligible to re-
ceive under this paragraph for any fiscal year is
the sum of the total weighted student units, as
computed under subsection (a)(2) (subject to
clause (ii)), multiplied by the greater of—
‘‘(I) four-fifths of the average per-pupil
expenditure of the State in which the local
educational agency is located for the third
fiscal year preceding the fiscal year for
which the determination is made; or
‘‘(II) four-fifths of the average per-
pupil expenditure of all of the States for the
third fiscal year preceding the fiscal year
for which the determination is made.
‘‘(ii)(I) For a local educational agency with
respect to which 35 percent or more of the total
student enrollment of the schools of the agency
are children described in subparagraph (D) or
(E) (or a combination thereof) of subsection
(a)(1), the Secretary shall calculate the weighted
student units of such children for purposes of
subsection (a)(2) by multiplying the number of
such children by a factor of 0.55.
‘‘(II) For a local educational agency that
has an enrollment of 100 or fewer federally con-
nected children described in subsection (a)(1), the
Secretary shall calculate the total number of
weighted student units for purposes of subsection
(a)(2) by multiplying the number of such chil-
dren by a factor of 1.75.
‘‘(III) For a local educational agency that
has an enrollment of more than 100 but not
more than 750 children described in subsection
(a)(1), the Secretary shall calculate the total
number of weighted student units for purposes of
subsection (a)(2) by multiplying the number of
such children by a factor of 1.25.
‘‘(E) MAXIMUM AMOUNT FOR LARGE HEAV-
ILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—
(i)(I) Subject to clause (ii), the maximum
amount that a heavily impacted local edu-
cational agency described in subclause (II) is eli-
gible to receive under this paragraph for any fis-
cal year shall be determined in accordance with
the formula described in paragraph (1)(C).
‘‘(II) A heavily impacted local educational
agency described in this subclause is a local edu-
cational agency that has a total student enroll-
ment of not less than 25,000 students, of which
not less than 50 percent are federally connected
children described in subsection (a)(1) and not
less than 6,000 of such federally connected chil-
dren are children described in subparagraphs
(A) and (B) of subsection (a)(1).
‘‘(ii) For purposes of calculating the max-
imum amount described in clause (i), the factor
used in determining the weighted student units
under subsection (a)(2) with respect to children
described in subparagraphs (A) and (B) of sub-
section (a)(1) shall be 1.35.
‘‘(F) DATA.—For purposes of providing as-
sistance under this paragraph, the Secretary
shall use student, revenue, expenditure, and tax
data from the third fiscal year preceding the fis-
cal year for which the local educational agency
is applying for assistance under this para-
graph.’’.
(b) PAYMENTS WITH RESPECT TO FISCAL YEARS IN
WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—Para-
graph (3) of section 8003(b) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7703(b)), as re-
designated, is amended—
(1) in subparagraph (A), by striking ‘‘paragraph
(1)’’ and inserting ‘‘paragraphs (1) and (2)’’;
(2) in subparagraph (B)—
(A) in the heading, by inserting after ‘‘PAY-
MENTS’’ the following: ‘‘IN LIEU OF PAYMENTS
UNDER PARAGRAPH (1)’’;
(B) in the matter preceding subclause (I) of
clause (i), by inserting after ‘‘‘threshold pay-
ment’)’’ the following: ‘‘in lieu of basic support
payments under paragraph (1)’’;
(C) in clause (ii), by striking ‘‘paragraph
(1)’’ and inserting ‘‘clause (i)’’; and
(D) by adding at the end the following:
‘‘(iv) In the case of a local educational
agency that has a total student enrollment of
fewer than 1,000 students and that has a per-
pupil expenditure that is less than the average
per-pupil expenditure of the State in which the
agency is located, the total percentage used to
calculate threshold payments under clause (i)
shall not be less than 40 percent.’’;
(3) by redesignating subparagraph (C) as sub-
paragraph (D);
(4) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) LEARNING OPPORTUNITY THRESHOLD
PAYMENTS IN LIEU OF PAYMENTS UNDER PARA-
GRAPH (2).—For fiscal years described in sub-
paragraph (A), the learning opportunity thresh-
old payment in lieu of basic support payments
under paragraph (2) shall be equal to the
amount obtained under subparagraph (D) or (E)
of paragraph (2), as the case may be.’’; and
(5) in subparagraph (D) (as redesignated), by
striking ‘‘computation made under subparagraph
(B)’’ and inserting ‘‘computations made under sub-
paragraphs (B) and (C)’’.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
8002(b)(1)(C) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7702(b)(1)(C)) is amended by strik-
ing ‘‘section 8003(b)(1)(C)’’ and inserting ‘‘paragraph
(1)(C) of section 8003(b) or subparagraph (D) or (E) of
paragraph (2) of such section, as the case may be’’.
(2) Section 8003 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703) is amended—
(A) in subsection (a)(1), by striking ‘‘subsection
(b), (d), or (f)’’ and inserting ‘‘subsection (b) or (d)’’;
(B) in subsection (b)—
(i) in paragraph (1)(C), in the matter pre-
ceding clause (i), by striking ‘‘this subsection’’
and inserting ‘‘this paragraph’’; and
(ii) in paragraph (4) (as redesignated)—
(I) in subparagraph (A), by striking
‘‘paragraphs (1)(B), (1)(C), and (2) of this
subsection’’ and inserting ‘‘subparagraphs
(B) and (C) of paragraph (1) or subpara-
graphs (B) through (D) of paragraph (2),
as the case may be, paragraph (3) of this
subsection’’; and
(II) in subparagraph (B)—
(aa) by inserting after ‘‘para-
graph (1)(C)’’ the following: ‘‘or sub-
paragraph (D) or (E) of paragraph
(2), as the case may be,’’; and
(bb) 
by 
striking 
‘‘paragraph
(2)(B)’’ and inserting ‘‘subparagraph
(B) or (C) of paragraph (3)’’;
(C) in subsection (c)(1), by striking ‘‘paragraph
(2) and subsection (f)’’ and inserting ‘‘subsection
(b)(2) and paragraph (2)’’;
(D) by striking subsection (f); and
(E) in subsection (i), by striking ‘‘sections 8002
and 8003(b)’’ and inserting ‘‘section 8002 and sub-
section (b) of this section’’.
SEC. 7. BASIC SUPPORT PAYMENTS FOR LOCAL EDU-
CATIONAL AGENCIES AFFECTED BY REMOVAL
OF FEDERAL PROPERTY.
Section 8003(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)), as amended
by this Act, is further amended by adding at the end the
following:
‘‘(5) LOCAL EDUCATIONAL AGENCIES AFFECTED
BY REMOVAL OF FEDERAL PROPERTY.—
‘‘(A) IN
GENERAL.—In computing the
amount of a basic support payment under this
subsection for a fiscal year for a local edu-
cational agency described in subparagraph (B),
the Secretary shall meet the additional require-
ments described in subparagraph (C).
‘‘(B) LOCAL
EDUCATIONAL
AGENCY
DE-
SCRIBED.—A local educational agency described
in this subparagraph is a local educational
agency with respect to which Federal property
(i) located within the boundaries of the agency,
and (ii) on which 1 or more children reside who
are receiving a free public education at a school
of the agency, is transferred by the Federal Gov-
ernment to another entity in any fiscal year be-
ginning on or after the date of the enactment of
the Impact Aid Reauthorization Act of 2000 so
that the property is subject to taxation by the
State or a political subdivision of the State.
‘‘(C) 
ADDITIONAL
REQUIREMENTS.—The
additional requirements described in this sub-
paragraph are the following:
‘‘(i) For each fiscal year beginning
after the date on which the Federal property
is transferred, a child described in subpara-
graph (B) who continues to reside on such
property and who continues to receive a free
public education at a school of the agency
shall be deemed to be a child who resides on
Federal property for purposes of computing
under the applicable subparagraph of sub-
section (a)(1) the amount that the agency is
eligible to receive under this subsection.
‘‘(ii)(I) For the third fiscal year begin-
ning after the date on which the Federal
property is transferred, and for each fiscal
year thereafter, the Secretary shall, after
computing the amount that the agency is
otherwise eligible to receive under this sub-
section for the fiscal year involved, deduct
from such amount an amount equal to the
revenue received by the agency for the im-
mediately preceding fiscal year as a result
of the taxable status of the former Federal
property.
‘‘(II) For purposes of determining the
amount of revenue to be deducted in accord-
ance with subclause (I), the local edu-
cational agency—
‘‘(aa) shall provide for a review
and certification of such amount by an
appropriate local tax authority; and
‘‘(bb) shall submit to the Sec-
retary a report containing the amount
certified under item (aa).’’.
SEC. 8. ADDITIONAL PAYMENTS FOR LOCAL EDUCATIONAL
AGENCIES WITH HIGH CONCENTRATIONS OF
CHILDREN WITH SEVERE DISABILITIES.
(a) REPEAL.—Subsection (g) of section 8003 of the El-
ementary and Secondary Education Act of 1965 (20 U.S.C.
7703(g)) is repealed.
(b) CONFORMING AMENDMENTS.—(1) Section 8003 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7703) is amended by redesignating subsections (h)
and (i) as subsections (f) and (g), respectively.
(2) Section 426 of the General Education Provisions
Act (20 U.S.C. 1228) is amended by striking ‘‘subsections
(d) and (g) of section 8003 of such Act’’ and inserting ‘‘sec-
tion 8003(d) of such Act’’.
SEC. 9. APPLICATION FOR PAYMENTS UNDER SECTIONS
8002 AND 8003.
Section 8005(d) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7705(d)) is amended—
(1) in paragraph (2), by inserting after ‘‘not
more than 60 days after a deadline established under
subsection (c)’’ the following: ‘‘, or not more than 60
days after the date on which the Secretary sends writ-
ten notice to the local educational agency pursuant to
paragraph (3)(A), as the case may be,’’; and
(2) in paragraph (3) to read as follows:
‘‘(3) LATE APPLICATIONS.—
‘‘(A) NOTICE.—The Secretary shall, as soon
as practicable after the deadline established
under subsection (c), provide to each local edu-
cational agency that applied for a payment
under section 8002 or 8003 for the prior fiscal
year, and with respect to which the Secretary
has not received an application for a payment
under either such section (as the case may be) for
the fiscal year in question, written notice of the
failure to comply with the deadline and instruc-
tion to ensure that the application is filed not
later than 60 days after the date on which the
Secretary sends the notice.
‘‘(B) ACCEPTANCE AND APPROVAL OF LATE
APPLICATIONS.—The Secretary shall not accept
or approve any application of a local edu-
cational agency that is filed more than 60 days
after the date on which the Secretary sends writ-
ten notice to the local educational agency pursu-
ant to subparagraph (A).’’.
SEC. 10. PAYMENTS FOR SUDDEN AND SUBSTANTIAL IN-
CREASES IN ATTENDANCE OF MILITARY DE-
PENDENTS.
Section 8006 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7706) is repealed.
SEC. 11. CONSTRUCTION.
(a) IN GENERAL.—Section 8007 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7707)
is amended to read as follows:
‘‘SEC. 8007. CONSTRUCTION.
‘‘(a) CONSTRUCTION PAYMENTS AUTHORIZED.—
‘‘(1) IN
GENERAL.—From 70 percent of the
amount appropriated for each fiscal year under sec-
tion 8014(e), the Secretary shall make payments in
accordance with this subsection to each local edu-
cational agency that receives a basic support payment
under section 8003(b) for that fiscal year.
‘‘(2) ADDITIONAL REQUIREMENTS.—A local edu-
cational agency that receives a basic support payment
under section 8003(b)(1) shall also meet at least 1 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
IM-
PACTED BY MILITARY DEPENDENT CHILDREN.—
The amount of a payment to each local edu-
cational agency described in this subsection that
is impacted by military dependent children for
a fiscal year shall be equal to—
‘‘(i)(II) 35 percent of the amount ap-
propriated under section 8014(e) for such
fiscal year; divided by
‘‘(II) the total number of weighted stu-
dent units of children described in subpara-
graphs (B) and (D)(i) of section 8003(a)(1)
for all local educational agencies described
in this subsection (as calculated under sec-
tion 8003(a)(2)), including the number of
weighted student units of such children at-
tending 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
IM-
PACTED 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 In-
dian lands for a fiscal year shall be equal to—
‘‘(i)(I) 35 percent of the amount ap-
propriated under section 8014(e) for such
fiscal year; divided by
‘‘(II) the total number of weighted stu-
dent units of children described in section
8003(a)(1)(C) for all local educational
agencies described in this subsection (as cal-
culated under section 8003(a)(2)); multi-
plied 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 MODERNIZATION GRANTS AU-
THORIZED.—
‘‘(1) IN
GENERAL.—From 30 percent of the
amount appropriated for each fiscal year under sec-
tion 8014(e), the Secretary shall award grants in ac-
cordance with this subsection to eligible local edu-
cational agencies to enable the local educational agen-
cies to carry out modernization of school facilities.
‘‘(2) ELIGIBILITY REQUIREMENTS.—A local edu-
cational agency is eligible to receive funds under this
subsection only if—
‘‘(A) such agency (or in the case of a local
educational agency that does not have the au-
thority to tax or issue bonds, such agency’s fiscal
agent) has no capacity to issue bonds or is at
such agency’s limit in bonded indebtedness for
the purposes of generating funds for capital ex-
penditures; and
‘‘(B)(i) such agency received assistance
under section 8002(a) for the fiscal year and has
an assessed value of taxable property per student
in the school district that is less than the average
of the assessed value of taxable property per stu-
dent in the State in which the local educational
agency is located; or
‘‘(ii) such agency received assistance under
subsection (a) for the fiscal year and has a school
facility emergency, as determined by the Sec-
retary, that poses a health or safety hazard to the
students and school personnel assigned to the
school facility.
‘‘(3) AWARD
CRITERIA.—In awarding grants
under this subsection the Secretary shall consider 1 or
more of the following factors:
‘‘(A) The extent to which the local edu-
cational agency lacks the fiscal capacity to un-
dertake the modernization project without Fed-
eral assistance.
‘‘(B) The extent to which property in the
local educational agency is nontaxable due to the
presence of the Federal Government.
‘‘(C) The extent to which the local edu-
cational agency serves high numbers or percent-
ages of children described in subparagraphs (A),
(B), (C), and (D) of section 8003(a)(1).
‘‘(D) The need for modernization to meet—
‘‘(i) the threat that the condition of the
school facility poses to the safety and well-
being of students;
‘‘(ii) overcrowding conditions as evi-
denced by the use of trailers and portable
buildings and the potential for future over-
crowding because of increased enrollment;
and
‘‘(iii) facility needs resulting from ac-
tions of the Federal Government.
‘‘(E) The age of the school facility to be
modernized.
‘‘(4) OTHER AWARD PROVISIONS.—
‘‘(A) FEDERAL SHARE.—The Federal funds
provided under this subsection to a local edu-
cational agency described in subparagraph (C)
shall not exceed 50 percent of the total cost of the
project to be assisted under this subsection. A
local educational agency may use in-kind con-
tributions to meet the matching requirement of
the preceding sentence.
‘‘(B) MAXIMUM
GRANT.—A local edu-
cational agency described in subparagraph (C)
may not receive a grant under this subsection in