I 
114TH CONGRESS 
1ST SESSION H. R. 1318 
To reauthorize the Impact Aid Program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2015 
Mrs. NOEM (for herself, Mr. LARSEN of Washington, Mr. TAKAI, and Mr. 
DOLD) introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To reauthorize the Impact Aid Program under the 
Elementary and Secondary Education Act of 1965. 
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 ‘‘Local Taxpayer Relief 
Act’’. 
SEC. 2. MAKING PERMANENT THE AMENDMENTS MADE BY 
THE IMPACT AID IMPROVEMENT ACT OF 2012. 
Section 563(c) of National Defense Authorization Act 
for Fiscal Year 2013 (Public Law 112–239; 126 Stat. 
1748; 20 U.S.C. 6301 note) (also known as the ‘‘Impact 
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Aid Improvement Act of 2012’’), as amended by section 
563 of division A of Public Law 113–291, is amended— 
(1) by striking paragraphs (1) and (4); and 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
SEC. 3. PURPOSE. 
Section 8001 (20 U.S.C. 7701) is amended, in the 
matter preceding paragraph (1), by striking ‘‘challenging 
State standards’’ and inserting ‘‘college and career ready 
State academic content and student academic achievement 
standards under section 1111(a)(1)’’. 
SEC. 4. PAYMENTS RELATING TO FEDERAL ACQUISITION 
OF REAL PROPERTY. 
(a) AMENDMENTS.—Section 8002 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7702) 
is amended— 
(1) in subsection (f), by striking paragraphs (4) 
and (5); 
(2) by striking subsection (g) and inserting the 
following: 
‘‘(g) FORMER DISTRICTS.— 
‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 
and all succeeding fiscal years, if a local educational 
agency described in paragraph (2) is formed at any 
time after 1938 by the consolidation of 2 or more 
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former school districts, the local educational agency 
may elect to have the Secretary determine its eligi-
bility and any amount for which the local edu-
cational agency is eligible under this section for any 
fiscal year on the basis of one or more of those 
former districts, as designated by the local edu-
cational agency. 
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency referred to in 
paragraph (1) is— 
‘‘(A) any local educational agency that, for 
fiscal year 1994 or any preceding fiscal year, 
applied, and was determined to be eligible 
under, section 2(c) of the Act of September 20, 
1950 (Public Law 874, 81st Congress), as that 
section was in effect for that fiscal year; or 
‘‘(B) a local educational agency formed by 
the consolidation of 2 or more districts, at least 
1 of which was eligible for assistance under this 
section for the fiscal year preceding the year of 
the consolidation, if— 
‘‘(i) for fiscal years 2006 through 
2013, the local educational had notified the 
Secretary of the designation not later than 
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30 days after the date of enactment of the 
Local Taxpayer Relief Act; and 
‘‘(ii) for fiscal year 2014 and any sub-
sequent fiscal year, the local educational 
agency includes the designation in its ap-
plication under section 8005 or any timely 
amendment to such application. 
‘‘(3) 
AVAILABILITY
OF
FUNDS.—Notwith-
standing any other provision of law limiting the pe-
riod during which the Secretary may obligate funds 
appropriated for any fiscal year after 2005, the Sec-
retary may obligate funds remaining after final pay-
ments have been made from any of such fiscal years 
to carry out this subsection.’’; 
(3) by striking subsections (k) and (m); and 
(4) by redesignating subsections (l) and (n) as 
subsections (j) and (k), respectively. 
(b) CONFORMING AMENDMENT.—Section 309 of divi-
sion H of the Consolidated Appropriations Act, 2014 (20 
U.S.C. 7702 note; Public Law 113–76) is repealed. 
(c) EFFECTIVE DATE.—Notwithstanding the date of 
enactment of this Act, the amendments made by this sec-
tion shall apply to applications submitted for fiscal year 
2010 and all succeeding fiscal years. 
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SEC. 5. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 
CHILDREN. 
Section 8003 of that Act (20 U.S.C. 7703) is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting after 
‘‘such agency,’’ the following: ‘‘including those 
children enrolled in a State that has a State 
open enrollment policy (but not including those 
children enrolled in a distance learning program 
not residing within the defined boundaries of 
the agency),’’; and 
(B) in paragraph (5)(A), by striking ‘‘to 
be’’ and all the follows through ‘‘situated’’ and 
inserting the following: ‘‘or under lease of off- 
base property under subchapter IV of chapter 
169 of title 10, United States Code, to be chil-
dren described under paragraph (1)(B) if the 
property described is within the fenced security 
perimeter of the military facility or attached to 
and under any type of force protection agree-
ment with the military installation upon which 
such housing is situated.’’; 
(2) in subsection (b)(2)— 
(A) in subparagraph (B)— 
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(i) in the subparagraph heading by 
striking ‘‘CONTINUING’’; 
(ii) by amending clause (i) to read as 
follows: 
‘‘(i) IN
GENERAL.—A heavily im-
pacted local educational agency is eligible 
to receive a basic support payment under 
subparagraph (A) with respect to a num-
ber of children determined under sub-
section (a)(1) if the agency— 
‘‘(I) is a local educational agency 
whose boundaries are the same as a 
Federal military installation or the 
boundaries are the same as island 
property designated by the Secretary 
of the Interior to be property that is 
held in trust by the Federal Govern-
ment and the agency has no taxing 
authority; 
‘‘(II) is a local educational agen-
cy— 
‘‘(aa) that has an enrollment 
of children described in sub-
section (a)(1) that constitutes a 
percentage of the total student 
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enrollment of the agency that is 
not less than 45 percent; 
‘‘(bb) that has a per-pupil 
expenditure that is less than— 
‘‘(AA) for an agency 
that has a total student en-
rollment of 500 or more stu-
dents, 125 percent of the av-
erage per-pupil expenditure 
of the State in which the 
agency is located; or 
‘‘(BB) for an agency 
that has a total student en-
rollment of less than 500, 
150 percent of the average 
per-pupil expenditure of the 
State in which the agency is 
located, or the average per 
pupil expenditure of 3 or 
more comparable local edu-
cational 
agencies 
in 
the 
State in which the agency is 
located; and 
‘‘(cc) that is an agency 
that— 
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‘‘(AA) has a tax rate 
for general fund purposes 
that is at least 95 percent of 
the average tax rate for gen-
eral fund purposes of com-
parable 
local 
educational 
agencies in the State; or 
‘‘(BB) was eligible to 
receive a payment under this 
subsection for fiscal year 
2013 and is located in a 
State that by State law has 
eliminated ad valorem tax as 
a revenue source for local 
educational agencies; 
‘‘(III) is a local educational agen-
cy that has a total student enrollment 
of not less than 25,000 students, of 
which not less than 50 percent are 
children described in subsection (a)(1) 
and not less than 5,500 of such chil-
dren are children described in sub-
paragraphs (A) and (B) of subsection 
(a)(1); or 
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‘‘(IV) is a local educational agen-
cy that was eligible for and received a 
payment under this paragraph in fis-
cal year 2012 and— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enroll-
ment of the agency that is not 
less than 20 percent; 
‘‘(bb) for the 3 fiscal years 
preceding the fiscal year for 
which the determination is made, 
the average enrollment of chil-
dren who are not described in 
subsection (a)(1) and who are eli-
gible for a free or reduced price 
lunch under the Richard B. Rus-
sell National School Lunch Act 
constitutes a percentage of the 
total student enrollment of the 
agency that is not less than 65 
percent; and 
‘‘(cc) has a tax rate for gen-
eral fund purposes which is not 
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less than 1.25 percent of the av-
erage tax rate for general fund 
purposes for comparable local 
educational 
agencies 
in 
the 
State.’’; 
(iii) by amending clause (ii) to read as 
follows: 
‘‘(ii) LOSS OF ELIGIBILITY.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), a heavily impacted 
local educational agency that met the 
requirements of clause (i) for a fiscal 
year shall be ineligible to receive a 
basic support payment under subpara-
graph (A) if the agency fails to meet 
the requirements of clause (i) for a 
subsequent fiscal year, except that 
such agency shall continue to receive 
a basic support payment under this 
paragraph for the fiscal year for 
which the ineligibility determination is 
made. 
‘‘(II) EXCEPTION.—For a local 
educational agency that is eligible 
under subparagraph (A) but whose 
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tax rate for general fund purposes 
falls below 95 percent of the average 
tax rate for general fund purposes of 
local educational agencies in the State 
for two consecutive years shall lose its 
eligibility and be subject to subclause 
(I).’’; 
(iv) by amending clause (iii) to read 
as follows: 
‘‘(iii) APPLICATION.—With respect to 
the first year for which a heavily impacted 
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 
fiscal years, the agency shall apply for 
such payment at least 1 year prior to the 
start of that fiscal year.’’; and 
(v) by adding at the end the following 
new clause: 
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‘‘(iv) 
SPECIAL
RULE.—Notwith-
standing clause (i)(II), a local educational 
agency shall be considered eligible to re-
ceive a basic support payment under sub-
paragraph (A) with respect to the number 
of children determined under subsection 
(a)(1) if the agency— 
‘‘(I) has an enrollment of chil-
dren described in subsection (a)(1), 
including, for purposes of determining 
eligibility, those children described in 
subparagraphs (F) and (G) of such 
subsection, that constitutes a percent-
age of the total student enrollment of 
the agency that is not less than 35 
percent; and 
‘‘(II) was eligible to receive as-
sistance under subsection (b)(2) for 
fiscal year 2001.’’; 
(B) by amending subparagraph (C) to read 
as follows: 
‘‘(C) MAXIMUM AMOUNT FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.— 
‘‘(i) IN
GENERAL.—The maximum 
amount that a heavily impacted local edu-
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cational agency is eligible to receive under 
this paragraph for any fiscal year is the 
sum of the total weighted student units, as 
computed under subsection (a)(2) and sub-
ject 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 pre-
ceding 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 pre-
ceding the fiscal year for which the 
determination is made. 
‘‘(ii) SPECIAL RULE.—(I)(aa) For a 
local educational agency with respect to 
which 35 percent or more of the total stu-
dent enrollment of the schools of the agen-
cy are children described in subparagraph 
(D) or (E) (or a combination thereof) of 
subsection (a)(1), and has an enrollment of 
children described in subparagraph (A), 
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(B), or (C) of such subsection equal to at 
least 10 percent of the agency’s total en-
rollment, the Secretary shall calculate the 
weighted student units of those children 
described in subparagraph (D) or (E) of 
such subsection by multiplying the number 
of such children by a factor of 0.55. 
‘‘(bb) For any local educational agen-
cy that received a payment under this 
clause in fiscal year 2012, the local edu-
cational agency shall not be required to 
have an enrollment of children described in 
subparagraph (A), (B), or (C) of such sub-
section equal to at least 10 percent of the 
agency’s total enrollment. 
‘‘(II) For a local educational agency 
that has an enrollment of 100 or fewer 
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 num-
ber of such children by a factor of 1.75. 
‘‘(III) For a local educational agency 
that does not qualify under subparagraph 
(B)(i)(I) of this subsection and has an en-
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rollment of more than 100 but not more 
than 1,000 children described in subsection 
(a)(1), the Secretary shall calculate the 
total number of weighted student units for 
purposes of subsection (a)(2) by multi-
plying the number of such children by a 
factor of 1.25.’’; 
(C) by amending subparagraph (D) to read 
as follows: 
‘‘(D) MAXIMUM
AMOUNT
FOR
LARGE 
HEAVILY
IMPACTED
LOCAL
EDUCATIONAL 
AGENCIES.—(i)(I) Subject to clause (ii), the 
maximum amount that a heavily impacted local 
educational agency described in subclause (II) 
is eligible to receive under this paragraph for 
any fiscal year shall be determined in accord-
ance with the formula described in paragraph 
(1)(C). 
‘‘(II) A heavily impacted local educational 
agency described in this subclause is a local 
educational agency that has a total student en-
rollment of not less than 25,000 students, of 
which not less than 50 percent are children de-
scribed in subsection (a)(1) and not less than 
5,500 of such children are children described in 
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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.’’; 
(D) by striking subparagraph (E); 
(E) by redesignating subparagraph (F) as 
subparagraph (E); 
(F) in subparagraph (E) (as so redesig-
nated by subparagraph (G))— 
(i) by striking clause (ii); 
(ii) by striking ‘‘; and’’ at the end of 
clause (i) and inserting a period; and 
(iii) by striking ‘‘the Secretary’’ and 
all that follows through ‘‘shall use’’ and in-
serting ‘‘the Secretary shall use’’; 
(G) by redesignating subparagraph (G) as 
subparagraph (F); 
(H) in subparagraph (F) (as so redesig-
nated by subparagraph (I), in the matter pre-
ceding clause (i), by striking ‘‘(C)(i)(II)(bb)’’ 
and inserting ‘‘(B)(i)(II)(bb)(BB)’’; 
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(I) by redesignating subparagraph (H) as 
subparagraph (G); and 
(J) in subparagraph (G) (as so redesig-
nated by subparagraph (K)— 
(i) in clause (i)— 
(I) by striking ‘‘(B), (C), (D). or 
(E),’’ and inserting ‘‘(B), (C), or 
(D),’’; 
(II) by striking ‘‘by reason of’’ 
and inserting ‘‘due to’’; 
(III) by inserting after ‘‘clause 
(iii),’’ the following: ‘‘or as the direct 
result of base realignment and closure 
or modularization as determined by 
the Secretary of Defense and force 
structure change or force relocation,’’; 
and 
(IV) by inserting before the pe-
riod at the end the following: ‘‘or dur-
ing such time as activities associated 
with base closure and realignment, 
modularization, 
force 
structure 
change, or force relocation is ongo-
ing’’; and 
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(ii) in clause (ii), by striking ‘‘(D) or 
(E)’’ in both places such term appears and 
inserting ‘‘(C) or (D)’’; 
(3) in subsection (b)(3)(B)— 
(A) by redesignating clause (iv) as clause 
(v); and 
(B) by inserting after clause (iii) the fol-
lowing: 
‘‘(iv) For any local educational agency 
that is providing a program of distant 
learning to children not residing within the 
legally defined boundaries of the agency, 
the Secretary shall disregard such children 
from such agency’s total enrollment when 
calculating the percentage under subclause 
(I) of clause (i) and shall disregard any 
funds received for such children when cal-
culating the total current expenditures at-
tributed to the operation of such agency 
when calculating the percentage under sub-
clause (II) of clause (i).’’; 
(4) in subsection (b)(3)(C), by striking ‘‘or (E) 
of paragraph (2), as the case may be’’ and inserting 
‘‘of paragraph (2)’’; 
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(5) by amending subsection (b)(3)(D) to read 
as follows: 
‘‘(D) RATABLE
DISTRIBUTION.—For any 
fiscal year described in subparagraph (A) for 
which the sums available exceed the amount re-
quired to pay each local educational agency 100 
percent of its threshold payment the Secretary 
shall distribute the excess sums to each eligible 
local educational agency that has not received 
its full amount computed under paragraph (1) 
or (2) (as the case may be) by multiplying— 
‘‘(i) a percentage, the denominator of 
which is the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for all local edu-
cational agencies and the amount of the 
threshold payment as calculated under sub-
paragraphs (B) and (C) of all local edu-
cational agencies, and the numerator of 
which is the aggregate amount of the ex-
cess sums by— 
‘‘(ii) the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for the agency 
and the amount of the threshold payment 
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as calculated under subparagraphs (B) and 
(C) of the agency.’’; 
(6) in subsection (c), by amending paragraph 
(2) to read as follows: 
‘‘(2) EXCEPTION.—Calculation of payments for 
a local educational agency shall be based on data 
from the fiscal year for which the agency is making 
an application for payment if such agency— 
‘‘(A) is newly established by a State, for 
the first year of operation of such agency only; 
‘‘(B) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an overall increase in enrollment 
(as determined by the Secretary in consultation 
with the Secretary of Defense, the Secretary of 
Interior or other Federal agencies)— 
‘‘(i) of not less than 10 percent, or 
100 students, of children described in— 
‘‘(I) subparagraph (A), (B), (C), 
or (D) of subsection (a)(1); or 
‘‘(II) subparagraph (F) or (G) of 
subsection (a)(1), but only to the ex-
tent such children are civilian depend-
ents of employees of the Department 
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of Defense or the Department of Inte-
rior; and 
‘‘(ii) that is the direct result of closure 
or realignment of military installations 
under the base closure process or the relo-
cation of members of the Armed Forces 
and civilian employees of the Department 
of Defense as part of force structure 
changes or movements of units or per-
sonnel between military installations or be-
cause of actions initiated by the Secretary 
of Interior or head of another Federal 
agency; and 
‘‘(C) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an overall increase in enrollment 
(as determined by the Secretary)— 
‘‘(i) of not less than 10 percent, or 
100 students, of children described in sub-
section (a)(1); and 
‘‘(ii) that is the direct result of the 
closure of a local educational agency that 
received a payment under subsection (b)(1) 
or (b)(2) in the previous fiscal year.’’; 
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(7) by amending subsection (e) to read as fol-
lows: 
‘‘(e) HOLD HARMLESS.— 
‘‘(1) IN GENERAL.—The total amount the Sec-
retary shall pay a local education agency under sub-
section (b)— 
‘‘(A) beginning in fiscal year 2016 and for 
any fiscal year thereafter in which a local edu-
cational agency’s payment is reduced by an 
amount greater than $5,000,000 or 20 percent 
from the amount received in the previous fiscal 
year, the Secretary shall pay a local educational 
agency for each of the 3 years following the re-
duction under subsection (b)— 
‘‘(i) for the first year shall not be less 
than 90 percent of the total amount that 
the local educational agency received under 
subsection (b)(1) or (b)(2) in the fiscal 
year prior to the reduction herein referred 
to as the base year; 
‘‘(ii) for the second year shall not be 
less than 85 percent of the total amount 
that the local educational agency received 
under subsection (b)(1) or (b)(2) in the 
base year; and 
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‘‘(iii) for the third year shall not be 
less than 80 percent of the total amount 
that the local educational agency received 
under subsection (b)(1) or (b)(2) in the 
base year. 
‘‘(2) RATABLE REDUCTION.— 
‘‘(A) IN
GENERAL.—If the sums made 
available under this title for any fiscal year are 
insufficient to pay the full amounts that all 
local educational agencies in all States are eligi-
ble to receive under paragraph (1) for such 
year, then the Secretary shall ratably reduce 
the payments to all such) agencies for such 
year. 
‘‘(B) ADDITIONAL
FUNDS.—If additional 
funds become available for making payments 
under paragraph (1) for such fiscal year, pay-
ments that were reduced under subparagraph 
(A) shall be increased on the same basis as 
such payments were reduced.’’; and 
(8) by striking subsection (g). 
SEC. 6. APPLICATION FOR PAYMENTS UNDER SECTIONS 
8002 AND 8003. 
Section 8005 of that Act (20 U.S.C. 7705) is amend-
ed by adding at the end the following: 
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‘‘(e) STUDENT COUNT.—For the purpose of meeting 
the requirements of section 222.35 of the Code of the Fed-
eral Regulations, the Secretary shall establish a third op-
tion for an applicant when counting its federally connected 
children by using the date established by the applicant to 
register the students of such applicant for the fiscal year 
for which the application is filed.’’. 
SEC. 7. CONSTRUCTION. 
Section 8007 of that Act (20 U.S.C. 7707) is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘40 per-
cent’’ and inserting ‘‘80 percent’’; 
(B) in paragraph (2) by adding at the end 
the following: 
‘‘(C) The agency is eligible under section 
8003(b)(2) or is receiving a basic support pay-
ment under circumstances described in section 
8003(b)(2)(B)(ii).’’; and 
(C) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) AMOUNT OF PAYMENTS.— 
‘‘(A) LOCAL
EDUCATION
AGENCIES
IM-
PACTED
BY
MILITARY
DEPENDENT
CHIL-
DREN.—The amount of a payment to each local 
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educational agency described in this subsection 
that is impacted by military dependent children 
for a fiscal year shall be equal to— 
‘‘(i)(I) 40 percent of the amount ap-
propriated under section 8014(e) for such 
fiscal year; divided by 
‘‘(II) the number of children described 
in subparagraphs (B) and (D)(i) of section 
(8003)(a)(1) who were in average daily at-
tendance for all local educational agencies 
described in paragraph (2), including the 
number of children attending a school fa-
cility described in section 8008(a) if the 
Secretary does not provide assistance for 
the school facility under that section for 
the fiscal year; multiplied by 
‘‘(ii) the number of children deter-
mined for such agency; 
‘‘(I) but not less than $25,000, 
except that this subparagraph shall 
not apply if the amount available to 
carry out paragraph (1) for such fis-
cal year is less than $32,000,000; and 
‘‘(II) not more than $4,000,000. 
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‘‘(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 the sub-
section that is impacted by children who reside 
on Indian lands for a fiscal year shall be equal 
to— 
‘‘(i)(I) 40 percent of the amount ap-
propriated under section 8014(e) for such 
fiscal year; divided by 
‘‘(II) the number of children described 
in section 8003(a)(1)(C) who were in aver-
age daily attendance for all local edu-
cational agencies described in paragraph 
(2); multiplied by 
‘‘(ii) the number of children deter-
mined for such agency; 
‘‘(I) but not less than $25,000, 
except that this subparagraph shall 
not apply if the amount available to 
carry out paragraph (1) for such fis-
cal year is less than $32,000,000; and 
‘‘(II) not more than $4,000, 
000.’’; and 
(2) in subsection (b)— 
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(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘60 per-
cent’’ and inserting ‘‘20 percent’’; 
(B) in paragraph (3)(A), in the matter 
preceding clause (i), by inserting after ‘‘an 
emergency grant under paragraph (2)(A)’’ the 
following: ‘‘if the agency is covered by para-
graph (7), or’’; 
(C) in paragraph (3)(C)(i)(I), by striking 
‘‘the agency meets at least one’’ and all that 
follows through the period at the end and in-
serting ‘‘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.’’; 
(D) by striking paragraph (3)(D)(ii)(II) 
and inserting the following: 
‘‘(II) The number of children de-
termined 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 
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school during the preceding school 
year.’’; 
(E) in paragraph (4)(C), by striking ‘‘(A), 
(B), (C), and (D)’’ and inserting ‘‘(A) and 
(C)’’; 
(F) by redesignating paragraph (7) as 
paragraph (8); and 
(G) by inserting after paragraph (6) the 
following: 
‘‘(7) SPECIAL
RULE.—Notwithstanding para-
graphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local edu-
cational agency is eligible to receive a grant under 
this subsection not to exceed $4,000,000 in any one 
fiscal year if such agency— 
‘‘(A) was eligible to receive a payment 
under section 8003 for the fiscal year prior to 
the year for which the application is made; and 
‘‘(B) has had an overall increase in enroll-
ment— 
‘‘(i) during the period between the end 
of the school year preceding the fiscal year 
for which the application is made and the 
beginning of the school year immediately 
preceding that school year; 
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‘‘(ii) of not less than 250 students or 
10 percent (whichever is lower), are chil-
dren described in— 
‘‘(I) subparagraph (A), (B), (C), 
or (D) of section 8003(a)(1); or 
‘‘(II) subparagraph (F) or (G) of 
section 8003(a)(1), but only to the ex-
tent such children are civilian depend-
ents of employees of the Department 
of Defense; and 
‘‘(iii) that is the direct result of one or 
more of the following: 
‘‘(I) Base realignment and clo-
sure or global rebasing, as determined 
by the Secretary of Defense. 
‘‘(II) Force structure changes or 
force reductions. 
‘‘(III) An action initiated by the 
Secretary of Interior or head of an-
other Federal agency.’’. 
SEC. 8. STATE CONSIDERATION OF PAYMENTS IN PRO-
VIDING STATE AID. 
Section 8009 of that Act (20 U.S.C. 7709) is amend-
ed— 
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(1) in subsection (b)(1), by inserting before the 
period at the end the following: ‘‘and for which the 
average per pupil expenditure is equal to or greater 
than the average per pupil expenditure of all the 
States in the third fiscal year preceding the fiscal 
year for which the State is applying for equalization 
under the section’’; 
(2) by amending subsection (b)(2) to read as 
follows: 
‘‘(2) COMPUTATION.— 
‘‘(A) STATE CURRENTLY QUALIFYING.— 
‘‘(i) IN
GENERAL.—For purposes of 
paragraph (1), a program of State aid for 
any State qualifying under this section for 
fiscal year 2006 equalizes expenditures 
among local educational agencies if, in the 
second fiscal year preceding the fiscal year 
for which the determination is made the 
amount of per-pupil expenditures made by, 
or per-pupil revenues available to, the local 
educational agency in the State with the 
highest such per-pupil expenditures or rev-
enues did not exceed the amount of such 
per-pupil expenditures made by, or per- 
pupil revenues available to, the local edu-
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cational agency in the State with the low-
est such expenditures or revenues by more 
than 25 percent as calculated under clause 
(ii). 
‘‘(B) OTHER
FACTORS.—Notwithstanding 
regulations in effect prior to the enactment of 
this subparagraph, in making a determination 
under this subparagraph, the Secretary shall— 
‘‘(i) arrange all local educational 
agencies in the State by per-pupil expendi-
tures or revenues in descending order from 
the highest to the lowest; 
‘‘(ii) using per-pupil expenditures or 
revenues as the only criteria disregard 
those local educational agencies that are 
spending above the 95th percentile and 
those spending below the 5th percentile; 
‘‘(iii) identify the local educational 
agency at the 95th percentile and the local 
educational agency at the 5th percentile; 
‘‘(iv) subtract the amount of per-pupil 
expenditures or revenues of the local edu-
cational agency at the 5th percentile from 
the amount of per-pupil expenditures or 
revenues of the local educational agency at 
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the 95th percentile and divide the dif-
ference by the per-pupil expenditures or 
revenues of the local educational agency at 
the 5th percentile; and 
‘‘(v) take into account the extent to 
which a program of State aid reflects the 
additional cost of providing free public 
education in particular types of local edu-
cational agencies such as those that are 
geographically isolated, or to particular 
types of students, such as children with 
disabilities. 
‘‘(C) NEW STATES APPLICANTS.— 
‘‘(i) IN
GENERAL.—For purposes of 
paragraph (1), a program of State aid for 
any State equalizing under this section 
after fiscal year 2006 equalizes expendi-
tures among local educational agencies if, 
in the second fiscal year preceding the fis-
cal year for which the determination is 
made, the amount of per-pupil expendi-
tures made by, or per pupil revenues avail-
able to, the local educational agency in the 
State with the highest such per-pupil ex-
penditures or revenues did not exceed the 
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amount of such per-pupil expenditures 
made by, or per-pupil revenues available 
to, the local educational agency in the 
State with the lowest such expenditures or 
revenues by more than 10 percent as cal-
culated under clause (ii). 
‘‘(ii) OTHER FACTORS.—In making a 
determination under this subparagraph, 
the Secretary notwithstanding regulations 
in use prior to the enactment of this Act 
shall— 
‘‘(I) arrange all local educational 
agencies in the State by per pupil ex-
penditures or revenues in descending 
order from the highest to the lowest; 
‘‘(II) using per-pupil expendi-
tures or revenues as the only criteria 
disregard 
those 
local 
educational 
agencies that are spending above the 
95th percentile and those spending 
below the 5th percentile; 
‘‘(III) identify the local edu-
cational agency at the 95th percentile 
and the local educational agency at 
the 5th percentile; 
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‘‘(IV) subtract the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
5th percentile from the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
95th percentile and divide the dif-
ference by the per-pupil expenditures 
or revenues of the local educational 
agency at the 5th percentile; and 
‘‘(V) take into account the extent 
to which a program of State aid re-
flects the additional cost of providing 
free public education in particular 
types of local educational agencies, 
such as those that are geographically 
isolated, or to particular types of stu-
dents, such as children with disabil-
ities.’’; and 
(3) in subsection (d)(2)— 
(A) by striking ‘‘A State’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—A State’’; and 
(B) by adding at the end of the following: 
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‘‘(B) STATES THAT ARE NOT EQUALIZED 
STATES.—A State that has not been approved 
as an equalized State under subsection (b) shall 
not consider funds received under section 8002 
or section 8003 of this title in any State for-
mula or place a limit or direct the use of such 
funds or consider such funds.’’. 
SEC. 9. DEFINITIONS. 
Section 8013 of that Act (20 U.S.C. 7713) is amend-
ed— 
(1) in paragraph (1) by striking ‘‘and Marine 
Corps’’ and inserting ‘‘Marine Corps, and Coast 
Guard’’; 
(2) in paragraph (4)— 
(A) in the first sentence thereof, by strik-
ing ‘‘part (A) of title I and title VI’’ and insert-
ing ‘‘title I and part A of title V’’; and 
(B) in the second sentence, by striking ‘‘be 
determined’’ and inserting ‘‘be made’’; 
(3) in paragraph (5)(A)(iii)— 
(A) by amending subsclause (II) to read as 
follows: 
‘‘(II) used to provide housing for 
homeless children at closed military 
installations pursuant to section 501 
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of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11411);’’; and 
(B) by amending subclause (III) to read as 
follows: 
‘‘(III) used for affordable hous-
ing assisted under the Native Amer-
ican Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 
4101 et seq.); or’’; 
(4) in paragraph (5)(A), by adding at the end 
the following: 
‘‘(VI) exempt of taxation real 
property and personal property identi-
fied by a local governmental entity, in-
cluding State government, if upon 
such property resides a child whose 
parents or guardians are certified to 
live on such property is considered to 
meet the eligibility requirements of 
section 151.4 of part 150 of sub-
chapter H of title 25, Code of Federal 
Regulations; or’’; 
(5) in paragraph (8)(A), by inserting commas 
before and after ‘‘and verified by’’; and 
(6) in paragraph (9)— 
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(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (C), the term ‘local educational 
agency’— 
‘‘(i) means a board of education or 
other legally constituted local school au-
thority having administrative control and 
direction of free public education in a 
county, township, independent school dis-
trict, or other school district; and 
‘‘(ii) includes any State agency that 
directly operates and maintains facilities 
for providing free public education; that 
except for those local educational agencies 
determined to be eligible to receive a pay-
ment under section 8003 prior to the date 
of the enactment of the Local Taxpayer 
Relief Act, when submitting an application 
under this title for the first time on or 
after the date of the enactment of such 
Act, has the authority to tax and has 
boundaries as defined by applicable State 
law for the purposes of levying such taxes, 
or has been granted the authority to re-
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ceive an imputed tax from a city, county, 
township, or other general purpose political 
subdivision of a State.’’; and 
(B) in subparagraph (B), by inserting a 
comma after ‘‘Secretary determines’’. 
SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 of that Act (20 U.S.C. 7714) is amend-
ed— 
(1) in subsection (a), by striking ‘‘appro-
priated’’ and all the follows through the period at 
the end and inserting ‘‘appropriated $66,813,000 for 
each of fiscal years 2016 through 2021.’’; 
(2) in subsection (b), by striking ‘‘appro-
priated’’ and all the follows through the period at 
the end and inserting ‘‘appropriated $1,151,233,000 
for each of fiscal years 2016 through 2021.’’; 
(3) in subsection (c), by striking ‘‘appro-
priated’’ and all the follows through the period at 
the end and inserting ‘‘appropriated $48,316,000 for 
each of fiscal years 2016 through 2021.’’; 
(4) by redesignating subsection (e) as sub-
section (d); 
(5) in subsection (d) (as so redesignated by 
paragraph (4)), by striking ‘‘appropriated’’ and all 
the follows through the period at the end and insert-
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ing ‘‘appropriated $17,406,000 for each of fiscal 
years 2016 through 2021.’’; 
(6) by redesignating subsection (f) as sub-
section (e); 
(7) in subsection (e) (as so designated by para-
graph (6)), by striking ‘‘appropriated’’ and all the 
follows through the period at the end and inserting 
‘‘appropriated $4,835,000 for each of fiscal years 
2016 through 2021.’’; and 
(8) by adding at the end of the following: 
‘‘(f) ALLOCATION OF DOLLARS FROM PREVIOUS FIS-
CAL YEARS.—When final payments are made for a fiscal 
year the Secretary shall add any remaining funds to those 
funds appropriated for such section for the next fiscal year 
for the purpose of making payments subject to the provi-
sions of the applicable section.’’. 
SEC. 11. ADDITIONAL AND CONFORMING AMENDMENTS. 
(a) SUBPART 20 OF PART D OF TITLE V.—Subpart 
15 (20 U.S.C. 7281 et seq.) of part D of title V of that 
Act (relating to additional assistance for certain local edu-
cational agencies impacted by Federal property acquisi-
tion) is repealed. 
(b) TITLE VIII.—Title VIII of Elementary and Sec-
ondary Education Act (20 U.S.C. 7701 et seq.) is further 
amended— 
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(1) in section 8004 (20 U.S.C. 7704)— 
(A) in subsection (e)(1)(B)(i), by striking 
‘‘involved, or if’’ and inserting ‘‘involved or, if’’; 
and 
(B) in subsection (f), by striking ‘‘upon’’ 
and inserting ‘‘on’’; 
(2) in section 8008(a) (20 U.S.C. 7708(a)), by 
striking ‘‘section 8014(f)’’ and inserting ‘‘section 
8014(e)’’; 
(3) in section 8010 (20 U.S.C. 7710)— 
(A) in subsection (b), by striking out ‘‘re-
quire’’ and inserting in lieu thereof ‘‘need’’; and 
(B) in subsection (c)(1)— 
(i) in subparagraph (A), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(2)’’; and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(2)’’; and 
(4) in section 8011(a) (20 U.S.C. 7711 (a)), by 
striking ‘‘or under’’ and all that follows through ‘‘of 
1994)’’. 
Æ 
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