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in order to ensure that student teachers within the
State of Alaska, particularly student teachers who are
likely to be employed in schools with a high con-
centration of Alaska Native students, are prepared to
better address the cultural diversity and unique needs
of Alaska Native students;
‘‘(5) TEACHER RECRUITMENT.—The development
and implementation of teacher recruitment programs
to meet the objectives of—
‘‘(A) increasing the numbers of teachers who
are Alaska Natives;
‘‘(B) enhancing teacher recruitment within
communities with a high concentration of Alaska
Native students; and
‘‘(C) improving the teacher selection proc-
esses in order to recruit teachers who are more
positively responsive to rural conditions and who
are suited for effective cross-cultural instruction.
‘‘(6) INSERVICE TEACHER TRAINING.—The devel-
opment and implementation of inservice teacher
training programs in order to ensure that teachers
are prepared to better address the unique needs of
Alaska Native students.
‘‘(b) ADMINISTRATIVE COSTS.—Not more than 10 per-
cent of the funds appropriated to carry out the provisions
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of this section for any fiscal year may be used for adminis-
trative purposes.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $5,000,000 for fiscal year
1995, and such sums as may be necessary for each of the
4 succeeding fiscal years, to carry out this section. Funds
appropriated under the authority of this subsection shall
remain available until expended.
‘‘SEC. 8925. ALASKA NATIVE HOME BASED EDUCATION FOR
PRESCHOOL CHILDREN.
‘‘(a) GENERAL
AUTHORITY.—The Secretary shall
make direct grants to Alaska Native organizations or edu-
cational entities with experience in developing or operating
Alaska Native programs, or to partnerships involving Alas-
ka Native organizations, to implement home instruction
programs for Alaska Native preschool youngsters. The objec-
tive of such programs shall be to develop parents as edu-
cators for their children and to assure the active involve-
ment of parents in the education of their children from the
earliest ages.
‘‘(b) PROGRAM ELEMENTS.—Home based education
programs for Alaska Native children shall include—
‘‘(1) 
parent-infant 
programs 
for 
prenatal
through three-year olds;
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‘‘(2) preschool programs for four- and five-year
olds;
‘‘(3) training, education and support programs
to teach parents skills in observation, reading readi-
ness, story telling and critical thinking;
‘‘(4) continued research and development; and
‘‘(5) a long term followup and assessment pro-
gram.
‘‘(c) ELIGIBILITY OF HIPPY PROGRAMS.—Programs
based on the HIPPY (Home Instruction Program for Pre-
school Youngsters) model shall be eligible for funding under
this section.
‘‘(d) ADMINISTRATIVE COSTS.—Not more than 10 per-
cent of the funds appropriated to carry out the provisions
of this section for any fiscal year may be used for adminis-
trative purposes.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $2,000,000 for fiscal year
1995, and such sums as may be necessary for each of the
4 succeeding fiscal years, to carry out this section. Funds
appropriated under the authority of this subsection shall
remain available until expended.
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‘‘SEC. 8926. ALASKA NATIVE STUDENT ENRICHMENT PRO-
GRAMS.
‘‘(a) GENERAL
AUTHORITY.—The Secretary shall
make a grant or grants to Alaska Native educational orga-
nizations or educational entities with experience in develop-
ing or operating Alaska Native programs, or to partner-
ships including Alaska Native organizations, for enrich-
ment programs for Alaska Native students in the areas of
science and mathematics education. The programs shall be
designed to—
‘‘(1) prepare qualified students from rural areas
who are preparing to enter village high schools to
excel in science and mathematics; and
‘‘(2) provide those support services to the fami-
lies of such students that are needed to enable such
students to benefit from the program.
‘‘(b) USES OF FUNDS.—The program funded under
this section may include—
‘‘(1) the identification of the students eligible to
participate in the program;
‘‘(2) the conduct of educational, psychosocial,
and developmental activities which hold reasonable
promise of resulting in substantial enrichment of the
educational performance of the participating students;
‘‘(3) leadership programs designed to provide for
the replication of the program in other subject matter
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areas and the dissemination of information derived
from the program; and
‘‘(4) appropriate research, evaluation and relat-
ed activities pertaining to the benefits of such enrich-
ment programs.
‘‘(c) ADMINISTRATIVE COSTS.—Not more than 10 per-
cent of the funds appropriated to carry out the provisions
of this section for any fiscal year may be used for adminis-
trative purposes.
‘‘(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated $1,000,000 for fiscal year
1995, and such sums as may be necessary for each of the
4 succeeding fiscal years, to carry out this section. Funds
appropriated under the authority of this subsection shall
remain available until expended.
‘‘SEC. 8927. ADMINISTRATIVE PROVISIONS.
‘‘(a) APPLICATION REQUIRED.—No grant may be
made under this part, nor any contract be entered into
under this part, unless an application is submitted to the
Secretary in such form, in such manner, and containing
such information as the Secretary may determine necessary
to carry out the provisions of this part.
‘‘(b) APPLICATIONS BY LOCAL SCHOOL DISTRICTS OR
STATE EDUCATIONAL ENTITIES.—Local school districts or
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State educational entities shall apply for funding under
this Part in partnership with Alaska Native organizations.
‘‘(c) CONSULTATION REQUIRED.—Each applicant for
funding shall provide for ongoing advice from and consulta-
tion with representatives of the Alaska Native community.
‘‘(d) LOCAL EDUCATIONAL AGENCY COORDINATION.—
Each local educational agency serving students who will
participate in the program for which assistance is sought
shall be informed regarding each application submitted
under this part: Provided, That approval by or concurrence
from such local educational agency shall not be required.
‘‘(e) IMPLEMENTATION OF AUTHORITIES.—The Sec-
retary shall expeditiously obligate funds appropriated as
provided in this part.
‘‘SEC. 8928. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘Alaska Native’ has the same
meaning as the term ‘Native’ has in section 3(b) of
the Alaska Native Claims Settlement Act.
‘‘(2) the term ‘Alaska Native organization’
means a federally recognized tribe, consortium of
tribes, regional nonprofit Native association, and
other Alaska Native organizations that:
‘‘(A) has or commits to acquire expertise in
the education of Alaska Natives; and
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‘‘(B) has Alaska Natives in substantive and
policy-making positions within the organization.
‘‘PART S—PROMOTING SCHOLAR-ATHLETE
COMPETITIONS
‘‘SEC. 8931. FINDINGS.
‘‘The Congress finds that—
‘‘(1) athletic and intellectual competition can be
a force for understanding and friendship among an
economically and culturally diverse population;
‘‘(2) the World Scholar-Athlete Games in 1993
brought together 2,000 young scholars ranging in age
from 16 to 19 who are talented in art, creative writ-
ing, poetry, singing or athletics, from 125 countries
and all 50 States; and
‘‘(3) through experiences on the playing field, in
group discussions and informal gatherings, scholar-
athlete competitions can foster understanding, accept-
ance and friendship among students who might other-
wise never interact.
‘‘SEC. 8932. PURPOSE.
‘‘It is the purpose of this part to provide authorization
for the establishment of a model educational, athletic, and
cultural event that—
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‘‘(1) is intended to bring together academically
qualified youth of diverse cultural, economic, and so-
cial backgrounds;
‘‘(2) is replicated by each State; and
‘‘(3) invites adult and student leaders in edu-
cation, business and government representing all 50
States to attend and observe the model event, includ-
ing such event’s educational and cultural programs,
so that such leaders are qualified to administer simi-
lar events in their home States.
‘‘SEC. 8933. PROGRAM AUTHORIZED.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN
GENERAL.—(A) If funds are appro-
priated pursuant to the authority of subsection (c) for
fiscal year 1995, the Secretary is authorized to award
a grant to a nonprofit organization to enable such or-
ganization to carry out model scholar-athlete games
in accordance with the purpose of this part.
‘‘(B) If funds are appropriated pursuant to the
authority of subsection (c) for fiscal year 1996, the
Secretary is authorized to award a grant to a non-
profit organization to reimburse such organization for
the costs of conducting scholar-athlete games in 1995.
‘‘(2) SPECIAL RULE.—Scholar-athlete games as-
sisted under this part shall be held in 1995.
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‘‘(3) PRIORITY.—In awarding grants under this
part, the Secretary shall give priority to a nonprofit
organization that—
‘‘(A) is described in section 501(c)(3) of,
and exempt from taxation under section 501(a)
of, the Internal Revenue Code of 1986, and is af-
filiated with a university capable of hosting a
large educational, cultural, and athletic event
that will serve as a national model;
‘‘(B) has the capability to administer feder-
ally funded scholar-athlete programs;
‘‘(C) has the ability to provide matching
funds, on a dollar-for-dollar basis, from founda-
tions and the private sector for the purpose of
conducting a scholar-athlete program;
‘‘(D) has the organizational structure and
capability to administer a model scholar-athlete
program in the summer of 1995;
‘‘(E) has the organizational structure and
expertise to replicate the scholar-athlete program
in various venues throughout the United States
in 1996 and thereafter, as well as replicate such
program internationally; and
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‘‘(F) the Secretary determines has plans for
conducting scholar-athlete games after 1995
without Federal assistance.
‘‘(b) PAYMENTS.—From the amount authorized to be
appropriated pursuant to the authority of subsection (c) for
fiscal year 1995, the Secretary is authorized to make grant
payments of 50 percent of such amount at the beginning
of such year and the remaining 50 percent of such amount
incrementally according to procedures established by the
Secretary.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $1,000,000 for each of the
fiscal years 1995 and 1996 to carry out this part.
‘‘PART T—COMMUNITY SCHOOL PARTNERSHIPS
‘‘SEC. 8941. SHORT TITLE.
‘‘This part may be cited as the ‘Community School
Partnership Act’.
‘‘SEC. 8942. FINDINGS.
‘‘The Congress finds that—
‘‘(1) the local community, when properly orga-
nized and challenged, is one of the best sources of aca-
demic support, motivation toward achievement, and
financial resources for aspiring postsecondary stu-
dents;
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‘‘(2) local communities, working to complement
or augment services currently being offered by area
schools and colleges, can raise the educational expec-
tations and increase the rate of postsecondary attend-
ance of their youth by forming locally based organiza-
tions that provide both academic support (including
guidance, counseling, mentoring, tutoring, encourage-
ment, and recognition) and tangible, locally raised,
effectively targeted, publicly recognized financial
assistance;
‘‘(3) proven methods of stimulating these commu-
nity efforts can be promoted through Federal support
for the establishment of area program centers to orga-
nize and challenge community efforts to develop edu-
cational incentives and support for local students;
and
‘‘(4) using Federal funds to leverage private con-
tributions to help students from low-income families
attain educational and career goals is an efficient
and effective investment of scarce taxpayer-provided
resources.
‘‘SEC. 8943. DEFINITIONS.
‘‘As used in this part:
‘‘(1) AREA PROGRAM CENTER.—The term ‘area
program center’ means an organization that—
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‘‘(A) is part of, responsible to, and overseen
by, the national organization; and
‘‘(B) is staffed by professionals trained to
create, develop, and sustain local affiliated chap-
ters in towns, cities, and neighborhoods.
‘‘(2) LOCAL
AFFILIATED
CHAPTER.—The term
‘local affiliated chapter’ means an organization
that—
‘‘(A) is a nonprofit organization that is de-
scribed in section 501(c)(3) of the Internal Reve-
nue Code of 1986, and exempt from taxation
under section 501(a) of such Code (or shall meet
this criteria through affiliation with the national
organization described in paragraph (3));
‘‘(B) is formed for the purpose of providing
educational scholarships and academic support
for residents of the local community served by
such organization;
‘‘(C) solicits broad-based community sup-
port in its academic support and fund-raising
activities;
‘‘(D) is broadly representative of the local
community in the structures of its volunteer-op-
erated organization and has a board of directors
that includes leaders from local neighborhood or-
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ganizations and neighborhood residents, such as
school or college personnel, parents, students,
community agency representatives, and rep-
resentatives of the business community;
‘‘(E) awards scholarships without regard to
age, sex, marital status, race, creed, color, reli-
gion, national origin or the presence of any men-
tal, sensory, or physical disability; and
‘‘(F) gives priority in awarding scholar-
ships to students from low-income families in the
local community.
‘‘(3) NATIONAL ORGANIZATION.—The term ‘na-
tional organization’ means an organization that—
‘‘(A) has the capacity to create, develop and
sustain local affiliated chapters;
‘‘(B) has the capacity to sustain newly cre-
ated local affiliated chapters in towns, cities,
and neighborhoods through ongoing training and
support programs;
‘‘(C) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and exempt from
taxation under section 501(a) of such Code;
‘‘(D) is a publicly supported organization
within the meaning of section 170(b)(1)(A)(vi) of
such Code;
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‘‘(E) ensures that each of its local affiliated
chapters meet the criteria described in subpara-
graphs (C) and (D); and
‘‘(F) has a program for or experience in co-
operating with secondary and postsecondary in-
stitutions in carrying out its scholarship and
academic support activities.
‘‘(4) HIGH-POVERTY AREA.—The term ‘high-pov-
erty area’ means a community with a higher percent-
age of children in poverty than the national average
of such percentage.
‘‘(5) STUDENTS FROM LOW-INCOME FAMILIES.—
The term ‘students from low-income families’ means
students determined, pursuant to part F of title IV of
the Higher Education Act of 1965, to be eligible for
a Federal Pell Grant under subpart 1 of part A of
title IV of such Act.
‘‘SEC. 8944. PURPOSE; ENDOWMENT GRANT AUTHORITY.
‘‘(a) PURPOSE.—It is the purpose of this title to estab-
lish and support area program centers to enable such cen-
ters to foster the development of local affiliated chapters in
high-poverty areas that promote higher education goals for
students from low-income families by—
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‘‘(1) providing academic support, including
guidance, counseling, mentoring, tutoring, and rec-
ognition; and
‘‘(2) providing scholarship assistance for the
pursuit of postsecondary education.
‘‘(b) ENDOWMENT GRANT AUTHORITY.—From the
funds appropriated pursuant to the authority of section
8947, the Secretary competitively award an endowment
grant to a national organization to enable such organiza-
tion to support the establishment or ongoing work of area
program centers that foster the development of local affili-
ated chapters in high-poverty areas to improve high school
graduation rates and postsecondary attendance through the
provision of academic support services and scholarship as-
sistance for the pursuit of postsecondary education.
‘‘SEC. 8945. GRANT AGREEMENT AND REQUIREMENTS.
‘‘(a) IN GENERAL.—The Secretary shall award the en-
dowment grant described in section 8944(b) pursuant to an
agreement between the Secretary and the national organiza-
tion. Such agreement shall—
‘‘(1) require the national organization to estab-
lish an endowment fund in the amount of the grant,
the corpus of which shall remain intact and the inter-
est income from which shall be used to support the ac-
tivities described in paragraphs (2) and (3);
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‘‘(A) a description of the programs and ac-
tivities supported by the interest on the endow-
ment fund;
‘‘(B) the audited financial statement of the
national organization for the preceding fiscal
year;
‘‘(C) a plan for the programs and activities
to be supported from the interest on the endow-
ment fund during the 5 succeeding fiscal years;
‘‘(D) or is accompanied by such evaluation
of the programs and activities supported by the
interest on the endowment fund as the Secretary
may require; and
‘‘(E) data indicating the number of students
from low-income families who received scholar-
ships from local affiliated chapters, and the
amounts of such scholarships;
‘‘(6) contain such assurances as the Secretary
may require with respect to the management and op-
eration of the endowment fund;
‘‘(7) require that, in order to continue using the
interest from the endowment fund, the national orga-
nization will meet the continuing eligibility require-
ments described in section 8946; and
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‘‘(8) contain an assurance that if the Secretary
determines that such organization is not in substan-
tial compliance with the provisions of this title, then
the national organization shall pay to the Secretary
an amount equal to the corpus of the endowment fund
plus any accrued interest on such fund that is avail-
able to the national organization on the date of such
determination.
‘‘(b) RETURNED FUNDS.—All funds returned to the
Secretary pursuant to subsection (a)(8) shall be available
to the Secretary to carry out any scholarship or grant pro-
gram assisted under title IV of the Higher Education Act
of 1965.
‘‘SEC. 8946. CONTINUING ELIGIBILITY.
‘‘The national organization shall be eligible to continue
to use the interest from the endowment fund in accordance
with the provisions of this title in the third and each such
succeeding fiscal year in which such organization uses such
interest only if the local affiliated chapters associated with
all area program centers supported under this part distrib-
ute to students from low-income families 80 percent of the
total amount of funds raised by all such chapters in such
year.
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‘‘SEC. 8947. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated $10,000,000
for fiscal year 1995 to carry out this title.
‘‘TITLE IX—SPECIAL PROGRAMS
‘‘PART A—IMPACT AID
‘‘SEC. 9001. PURPOSE.
‘‘In order to fulfill the Federal responsibility to assist
with the provision of educational services to federally con-
nected children, because certain activities of the Federal
Government place a financial burden on the local edu-
cational agencies serving areas where such activities are
carried out and to help such children meet challenging State
standards, it is the purpose of this part to provide financial
assistance to local educational agencies that—
‘‘(1) experience a substantial and continuing fi-
nancial burden due to the acquisition of real property
by the United States;
‘‘(2) educate children who reside on Federal
property and whose parents are employed on Federal
property;
‘‘(3) educate children of parents who are in the
military services and children who live in low-rent
housing;
‘‘(4) experience sudden and substantial increases
or decreases in enrollments because of military
realignments; or
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‘‘(5) need special assistance with capital expend-
itures for construction activities because of the enroll-
ments of substantial numbers of children who reside
on Federal lands.
‘‘SEC. 9002. PAYMENTS RELATING TO FEDERAL ACQUISI-
TION OF REAL PROPERTY.
‘‘(a) IN GENERAL.—Where the Secretary, after con-
sultation with any local educational agency and with the
appropriate State educational agency, determines for a fis-
cal year ending prior to October 1, 1999—
‘‘(1) that the United States owns Federal prop-
erty in the local educational agency, and that such
property—
‘‘(A) has been acquired by the United States
since 1938;
‘‘(B) was not acquired by exchange for other
Federal property in the local educational agency
which the United States owned before 1939; and
‘‘(C) had an assessed value (determined as
of the time or times when so acquired) aggregat-
ing 10 percent or more of the assessed value of—
‘‘(i) all real property in the local edu-
cational agency (similarly determined as of
the time or times when such Federal prop-
erty was so acquired); or
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‘‘(ii) all real property in the local edu-
cational agency as assessed in the first year
preceding or the year succeeding acquisi-
tion, whichever is greater, only if—
‘‘(I) the assessment of all real
property in the local educational agen-
cy is not made at the same time or
times that such Federal property was
so acquired and assessed; and
‘‘(II) State law requires an assess-
ment be made of property so acquired;
and
‘‘(2) that such agency is not being substantially
compensated for the loss in revenue resulting from
such ownership by increases in revenue accruing to
the agency from the conduct of Federal activities with
respect to such Federal property,
then the local educational agency shall be eligible to receive
for such fiscal year such amount as, in the judgment of the
Secretary, is equal to the continuing Federal responsibility
for the additional financial burden with respect to current
expenditures placed on such agency by such acquisition of
property.
‘‘(b) AMOUNT.—
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‘‘(1) IN GENERAL.—(A)(i) The amount that a
local educational agency shall be paid under sub-
section (a) for a fiscal year shall be calculated in ac-
cordance with paragraph (2), except that such
amount shall be reduced by the Secretary by an
amount equal to the amount of revenue, if any, that
such agency received during the previous fiscal year
from activities conducted on such property.
‘‘(ii) For purposes of clause (i), the amount of
revenue that a local educational agency receives dur-
ing the previous fiscal year from activities conducted
on Federal property shall not include payments re-
ceived by the agency from the Secretary of Defense to
support—
‘‘(I) the operation of a domestic dependent
elementary or secondary school; or
‘‘(II) the provision of a free public edu-
cation to dependents of members of the Armed
Forces residing on or near a military installa-
tion.
‘‘(B) If funds appropriated under section
9014(a) are insufficient to pay the amount deter-
mined under subparagraph (A), the Secretary shall
ratably reduce the payment to each eligible local edu-
cational agency.
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‘‘(C) Notwithstanding any other provision of this
subsection, a local educational agency may not be
paid an amount under this section that when added
to the amount such agency receives under section
9003(b)(2) exceeds the maximum amount that such
agency is eligible to receive for such fiscal year under
section 9003(b)(1)(C).
‘‘(2) APPLICATION
OF
CURRENT
LEVIED
REAL
PROPERTY TAX RATE.—In making a determination of
the amount that would have been derived in such year
under paragraph (1)(A), the Secretary shall apply the
current levied real property tax rate for current ex-
penditures levied by fiscally independent local edu-
cational agencies or imputed, for fiscally dependent
local educational agencies, to the current annually de-
termined aggregate assessed value of such acquired
Federal property.
‘‘(3) DETERMINATION OF AGGREGATE ASSESSED
VALUE.—Such aggregate assessed value of such ac-
quired Federal property shall be determined (on the
basis of the highest and best use of property adjacent
to such acquired Federal property as of the time such
value is determined), and provided to the Secretary,
by the local official responsible for assessing the value
of real property located in the jurisdiction of such
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local educational agency for the purpose of levying a
property tax.
‘‘(c) APPLICABILITY TO TENNESSEE VALLEY AUTHOR-
ITY ACT.—For the purposes of this section, any real prop-
erty with respect to which payments are being made under
section 13 of the Tennessee Valley Authority Act of 1933
shall not be regarded as Federal property.
‘‘(d) OWNERSHIP BY UNITED STATES.—The United
States shall be deemed to own Federal property for the pur-
poses of this Act, where—
‘‘(1) prior to the transfer of Federal property, the
United States owned Federal property meeting the re-
quirements of subparagraphs (A), (B), and (C) of sub-
section (a)(1); and
‘‘(2) the United States transfers a portion of the
property referred to in paragraph (1) to another non-
taxable entity, and the United States—
‘‘(A) restricts some or any construction on
such property;
‘‘(B) requires that the property be used in
perpetuity for the public purposes for which the
property was conveyed;
‘‘(C) requires the grantee of the property to
report to the Federal Government (or its agent)
regarding information on the use of the property;
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‘‘(D) except with the approval of the Fed-
eral Government (or its agent), prohibits the
sale, lease, assignment, or other disposal of the
property unless such sale, lease, assignment, or
other disposal is to another eligible government
agency; and
‘‘(E) reserves to the Federal Government a
right of reversion at any time the Federal Gov-
ernment (or its agent) deems it necessary for the
national defense.
‘‘(e) DISTRICT CONTAINING FOREST SERVICE LAND
AND SERVING CERTAIN COUNTIES.—Beginning with fiscal
year 1995, a school district shall be deemed to meet the re-
quirements of subsection (a)(1)(C) if such school district
meets the following requirements:
‘‘(1) The school district contains between 20,000
and 60,000 acres of land that has been acquired by
the Forest Service of the Department of Agriculture
between 1915 and 1990, as demonstrated by written
evidence from the Forest Service satisfactory to the
Secretary.
‘‘(2) The school district serves a county certified
by State law in 1875 or 1890.
‘‘(f) SPECIAL RULE.—Beginning with fiscal year
1994, and notwithstanding any other provision of law lim-
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iting the period during which fiscal year 1994 funds may
be obligated, the Secretary of Education shall treat the local
educational agency serving the Wheatland R–II School Dis-
trict, Wheatland, Missouri, as meeting the eligibility re-
quirements of section 2(a)(1)(C) of the Act of September 30,
1950 (Public Law 874, 81st Congress) (20 U.S.C.
237(a)(1)(C)) or section 9003(a)(1)(C) of the Elementary
and Secondary Education Act of 1965.
‘‘SEC. 9003. PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN.
‘‘(a) COMPUTATION OF PAYMENT.—
‘‘(1) IN GENERAL.—For the purpose of comput-
ing the amount that a local educational agency is eli-
gible to receive under subsection (b), (d), or (f) for
any fiscal year, the Secretary shall determine the
number of children who were in average daily attend-
ance in the schools of such agency, and for whom such
agency provided free public education, during the pre-
ceding school year and who, while in attendance at
such schools—
‘‘(A)(i) resided on Federal property with a
parent employed on Federal property situated in
whole or in part within the boundaries of the
school district of such agency; or
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‘‘(ii) resided on Federal property with a
parent who is an official of, and accredited by,
a foreign government and is a foreign military
officer;
‘‘(B) resided on Federal property and had
a parent on active duty in the uniformed serv-
ices (as defined in section 101 of title 37, United
States Code);
‘‘(C) resided on Indian lands;
‘‘(D)(i) had a parent on active duty in the
uniformed services (as defined by section 101 of
title 37, United States Code) but did not reside
on Federal property; or
‘‘(ii) had a parent who is an official of, and
has been accredited by, a foreign government and
is a foreign military officer but did not reside on
Federal property;
‘‘(E) resided in low-rent housing;
‘‘(F) resided on Federal property and is not
described in subparagraph (A) or (B); or
‘‘(G) resided with a parent employed on
Federal property situated—
‘‘(i) in whole or in part in the county
in which the school district of such agency
is located, or in whole or in part in the
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school district of such agency if the school
district is located in more than one county;
or
‘‘(ii) if not in such county or district,
in whole or in part in the same State as the
school district of such agency.
‘‘(2) DETERMINATION
OF
WEIGHTED
STUDENT
UNITS.—For purposes of computing the basic support
payment under subsection (b), the Secretary shall cal-
culate the total number of weighted student units for
a local educational agency by adding together the re-
sults obtained by the following computations:
‘‘(A) Multiply the number of children de-
scribed in subparagraphs (A) and (B) of para-
graph (1) by a factor of 1.0.
‘‘(B) Multiply the number of children de-
scribed in paragraph (1)(C) by a factor of 1.25.
‘‘(C) Multiply the number of children de-
scribed in subparagraphs (D) and (E) of para-
graph (1) by a factor of .10.
‘‘(D) Multiply the number of children de-
scribed in subparagraphs (F) and (G) of para-
graph (1) by a factor of .05.
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‘‘(b) BASIC SUPPORT PAYMENTS AND PAYMENTS WITH
RESPECT
TO FISCAL YEARS
IN WHICH INSUFFICIENT
FUNDS ARE APPROPRIATED.—
‘‘(1) BASIC SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 9014(b) for a fiscal
year, the Secretary is authorized to make basic
support payments to eligible local educational
agencies with children described under subsection
(a).
‘‘(B) ELIGIBILITY.—A local educational
agency shall be eligible to receive a basic support
payment under subparagraph (A) for a fiscal
year with respect to a number of children deter-
mined under subsection (a) only if the number
of children so determined with respect to such
agency amounts to the lesser of—
‘‘(i) at least 400 such children; or
‘‘(ii) a number of such children which
equals at least 3 percent of the total number
of children who were in average daily at-
tendance, during such year, at the schools of
such agency and for whom such agency pro-
vided free public education.
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‘‘(C) MAXIMUM
AMOUNT.—The maximum
amount that a local educational agency is eligi-
ble to receive under this subsection for any fiscal
year is the sum of the total weighted student
units, as computed under subsection (a)(2), mul-
tiplied by the greater of—
‘‘(i) one-half 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;
‘‘(ii) one-half of the average per pupil
expenditures of all of the States for the third
fiscal year preceding the fiscal year for
which the determination is made;
‘‘(iii) the comparable local contribution
rate certified by the State, as determined
under regulations prescribed to carry out
the Act of September 30, 1950 (Public Law
874, 81st Congress), as such regulations
were in effect on January 1, 1994; or
‘‘(iv) the average per pupil expenditure
of the State in which the local educational
agency is located, multiplied by the local
contribution percentage.
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‘‘(2) PAYMENTS WITH RESPECT TO FISCAL YEARS
IN
WHICH
INSUFFICIENT
FUNDS
ARE
APPRO-
PRIATED.—
‘‘(A) IN GENERAL.—For any fiscal year in
which the sums appropriated under section
9014(b) are insufficient to pay to each local edu-
cational agency the full amount computed under
paragraph (1), the Secretary shall make pay-
ments in accordance with this paragraph.
‘‘(B) LEARNING OPPORTUNITY THRESHOLD
PAYMENTS.—(i) For fiscal years described in
subparagraph (A), the Secretary shall compute a
learning opportunity threshold payment (here-
after in this title referred to as the ‘threshold
payment’) by multiplying the amount obtained
under paragraph (1)(C) by the total percentage
obtained by adding—
‘‘(I) the percentage of federally con-
nected children for each local educational
agency determined by calculating the frac-
tion, the numerator of which is the total
number of children described under sub-
section (a)(1) and the denominator of which
is the total number of children in average
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daily attendance at the schools served by
such agency; and
‘‘(II) the percentage that funds under
paragraph (1)(C) represent of the total
budget of the local educational agency, de-
termined by calculating the fraction, the
numerator of which is the total amount of
funds calculated for each local educational
agency under this subsection (not including
amounts received under subsection (f)), and
the denominator of which is the total cur-
rent expenditures for such agency in the sec-
ond preceding fiscal year for which the de-
termination is made.
‘‘(ii) Such total percentage used to calculate
threshold payments under paragraph (1) shall
not exceed 100.
‘‘(iii) For the purpose of determining the
percentages described in subclauses (I) and (II)
of clause (i) that are applicable to the local edu-
cational agency providing free public education
to students in grades 9 through 12 residing on
Hanscom Air Force Base, Massachusetts, the
Secretary shall consider only that portion of such
agency’s total enrollment of students in grades 9
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through 12 when calculating the percentage
under such subclause (I) and only that portion
of the total current expenditures attributed to the
operation of grades 9 through 12 in such agency
when calculating the percentage under subclause
(II).
‘‘(C) RATABLE
DISTRIBUTION.—For fiscal
years described in subparagraph (A), the Sec-
retary shall make payments as a ratable dis-
tribution based upon the computation made
under subparagraph (B).
‘‘(c) PRIOR YEAR DATA.—All calculations under this
section shall be based upon data for each local educational
agency from not later than the first fiscal year preceding
the fiscal year for which the agency is making application
for payment.
‘‘(d) CHILDREN WITH DISABILITIES.—
‘‘(1) IN
GENERAL.—From the amount appro-
priated under section 9014(c) for a fiscal year, the
Secretary shall pay to each eligible local educational
agency, on a pro rata basis, the amounts determined
by—
‘‘(A) multiplying the number of children de-
scribed in subparagraphs (A)(ii), (B) and (C) of
subsection (a)(1) who are eligible to receive serv-
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ices under the Individuals with Disabilities Edu-
cation Act by a factor of 1.0; and
‘‘(B) multiplying the number of children de-
scribed in subparagraph (D) of subsection (a)(1)
who are eligible to receive services under such
Act by a factor of 0.5.
‘‘(2) USE OF FUNDS.—A local educational agen-
cy that receives funds under paragraph (1) shall use
such funds to provide a free appropriate public edu-
cation to children described in paragraph (1) in ac-
cordance with the Individuals with Disabilities Edu-
cation Act.
‘‘(e) HOLD-HARMLESS AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), the total amount that the Secretary shall
pay a local educational agency under subsection (b)
shall not be less than 95 percent of the amount such
agency received for the preceding fiscal year—
‘‘(A) in the case of fiscal year 1995 only,
under section 3 of the Act of September 30, 1950
(Public Law 874, 81st Congress); or
‘‘(B) in the case of fiscal years 1996, 1997,
1998, or 1999, under such subsection (b).
‘‘(2) TWO-YEAR APPLICABILITY.—The provisions
of paragraph (1) shall apply to any one local edu-
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cational agency for a maximum of two consecutive
fiscal years, except that in the second such year the
total amount the Secretary shall pay a local edu-
cational agency under subsection (b) shall not be less
than 85 percent of the amount such agency received
under such subsection in the preceding fiscal year.
‘‘(3) RATABLE REDUCTIONS.—(A)(i) If necessary
in order to make payments to local educational agen-
cies in accordance with paragraph (1), the Secretary
first shall ratably reduce payments under subsection
(b) to local educational agencies that do not receive
a payment under this subsection.
‘‘(ii) If additional funds become available for
making payments under paragraph (1) for such fiscal
year, payments that were reduced under clause (i)
shall be increased on the same basis as such payments
were reduced.
‘‘(B)(i) If the sums made available under this
part for any fiscal year are insufficient to pay the
full amounts that all local educational agencies in all
States are eligible to receive under paragraphs (1)
and (2) after the application of subparagraph (A) for
such year, the Secretary shall ratably reduce pay-
ments to all such agencies for such year.
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‘‘(ii) If additional funds become available for
making payments under paragraphs (1) and (2) for
such fiscal year, payments that were reduced under
clause (i) shall be increased on the same basis as such
payments were reduced.
‘‘(f) ADDITIONAL ASSISTANCE FOR HEAVILY IMPACTED
LOCAL EDUCATIONAL AGENCIES.—
‘‘(1) 
RESERVATION.—From 
amounts 
appro-
priated under section 9014(b) for a fiscal year, the
Secretary shall provide additional assistance to meet
special circumstances relating to the provision of edu-
cation in local educational agencies eligible to receive
assistance under this section.
‘‘(2) ELIGIBILITY.—(A) A local educational
agency shall be eligible to receive additional assist-
ance under this subsection only if such agency—
‘‘(i)(I) has an enrollment of federally con-
nected children described in subsection (a)(1)
which constitutes at least 50 percent of the total
student enrollment of such agency; and
‘‘(II) has a tax rate for general fund pur-
poses which is at least 95 percent of the average
tax rate for general fund purposes of comparable
local educational agencies in the State;
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‘‘(ii)(I) has an enrollment of federally con-
nected children described in subsection (a)(1)
which constitutes at least 35 percent of the total
student enrollment of such agency; and
‘‘(II) has a tax rate for general fund pur-
poses which is at least 125 percent of the average
tax rate for general fund purposes of comparable
local educational agencies in the State; or
‘‘(iii) is a local educational agency whose
boundaries are the same as a Federal military
installation.
‘‘(B) If the current expenditures in those local
educational agencies which the Secretary has deter-
mined to be generally comparable to the local edu-
cational agency for which a computation is made
under subsection (b)(1)(C) are not reasonably com-
parable because of unusual geographical factors which
affect the current expenditures necessary 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 by such an amount which the Secretary deter-
mines will compensate such agency for the increase in
current expenditures necessitated by such unusual
geographical factors. The amount of any such supple-
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mentary payment may not exceed the per-pupil share
(computed with regard to all children in average
daily attendance), as determined by the Secretary, of
the increased current expenditures necessitated by
such unusual geographic factors.
‘‘(C) Any local educational agency determined
eligible under clause (iii) of subparagraph (A) shall
be deemed to have met the tax efforts requirements for
eligibility under clause (i)(II) or (ii)(II) of such sub-
paragraph.
‘‘(3) MAXIMUM PAYMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall determine the
maximum amount that a local educational agen-
cy may receive under this subsection in accord-
ance with the following computations:
‘‘(i) The Secretary shall first determine
the greater of—
‘‘(I) the average per pupil expend-
iture of the State in which the local
educational agency is located;
‘‘(II) the average per pupil ex-
penditure 
of 
generally 
comparable
school districts located in the State of
the local educational agency, as defined
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in regulations issued by the Secretary;
or
‘‘(III) the average per pupil ex-
penditure of three generally com-
parable school districts located in the
State of the local educational agency,
as defined in regulations issued by the
Secretary.
‘‘(ii) The Secretary shall next subtract
from the amount determined under clause
(i) the total amount of general fund reve-
nues received by the local educational agen-
cy from any general fund source per pupil,
other than revenues provided under this
subsection.
‘‘(iii) The Secretary shall next mul-
tiply the amount determined under clause
(ii) by the total number of students in aver-
age daily attendance of the local edu-
cational agency.
‘‘(iv) If the tax rate used by the local
educational agency is greater than 95 per-
cent, but less than 100 percent, of the tax
rate of comparable school districts, the Sec-
retary shall next multiply the amount deter-
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mined under clause (iii) by the percentage
that the tax rate of the local educational
agency is of—
‘‘(I) the average tax rate of its
generally comparable school districts;
or
‘‘(II) the average tax rate of all
the school districts in the State in
which the local educational agency is
located.
‘‘(v) The Secretary shall next subtract
the total amount of payments received by a
local educational agency under subsections
(b) and (d) for a fiscal year from the
amount determined under clause (iii) or
clause (iv), as the case may be.
‘‘(B) SPECIAL RULE.—(i) With respect to
payments under this subsection for a local edu-
cational agency described in clause (ii) or (iii)
of paragraph (2)(A), the maximum amount of
such payments shall be computed by taking the
product of the average per pupil expenditure in
all States multiplied by .7, except that such
amount may not exceed 125 percent of the aver-
age per pupil expenditure in all local edu-
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cational agencies in the State, and multiplying
such product by the number of students who are
served by such local educational agency and de-
scribed in subparagraph (A) or (B) of subsection
(a)(1).
‘‘(ii) The payment under this subsection
that a local educational agency described in
clauses (ii) and (iii) of paragraph (2)(A) shall
receive in any fiscal year shall be equal to the
maximum amount described in clause (i) minus
the amount of payments such agency receives
under subsections (b) and (d) for such year.
‘‘(4) CURRENT YEAR DATA.—The Secretary shall,
for purposes of providing assistance under this sub-
section, use—
‘‘(A) student and revenue data from the fis-
cal year for which the local educational agency
is applying for assistance under this subsection;
and
‘‘(B) the most recent data available on per-
pupil cost adjusted to reflect per-pupil cost made
current by increasing or decreasing the per-pupil
expenditure data for the second fiscal year pre-
ceding the fiscal year for which the determina-
tion is made by the same percentage increase or
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decrease reflected between the per-pupil expendi-
ture data for the fourth fiscal year preceding the
fiscal year for which the determination is made
and the per-pupil expenditure data for such sec-
ond year.
‘‘(5) DETERMINATION FOR FISCAL YEAR 1994.—
Notwithstanding the proviso referring to section
3(d)(2)(B) of Public Law 81–874 under the following
heading ‘‘IMPACT AID’’ under title III of the De-
partments of Labor, Health and Human services and
Education, and Related Agencies Appropriations Act
of 1994, or any provision of paragraph (2) of section
3(d) of such Public Law which is consistent with this
proviso, determinations regarding the eligibility for
an amount of payments under section 3(d)(2)(B) of
such Public Law for fiscal year 1994 shall be made
on the basis of 1994 data, and related Department
regulations in effect during fiscal year 1992 shall be
used in the tabulation of payments.
‘‘(6) REDUCTION IN PAYMENTS.—If funds appro-
priated to carry out this subsection are insufficient to
pay in full the amounts determined under paragraph
(3), the Secretary shall ratably reduce the payment to
each eligible local educational agency.
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‘‘(g) ADDITIONAL
PAYMENTS
FOR
LOCAL
EDU-
CATIONAL AGENCIES WITH HIGH CONCENTRATIONS
OF
CHILDREN WITH SEVERE DISABILITIES.—
‘‘(1) IN
GENERAL.—If any local educational
agency receives Federal funds from sources other than
this part to carry out the purposes of this part for
any fiscal year due to the enrollment of children de-
scribed under subsection (a), then the Secretary shall
consider such funds as a payment to such agency
under this part for such fiscal year.
‘‘(2) 
SPECIAL
RULE.—Notwithstanding 
any
other provision of law, if funds appropriated pursu-
ant to section 9014(b) for payments under subsection
(b) to such agency for a fiscal year which when added
to the funds described in paragraph (1) received by
such agency for such fiscal year exceed the maximum
amount described under subsection (b)(1)(C), then the
Secretary shall make available from the funds appro-
priated under section 9014(b) for such fiscal year
such excess amounts to any local educational agency
serving two or more children described under sub-
paragraph (B) or (D) of section 9003(a)(1) who have
a severe disability and a parent serving in the uni-
formed services (as defined by section 101 of title 37,
United States Code) and assigned to a particular per-
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‘‘(C) conduct the initial planning for a per-
manent national commission on rural public
education.
‘‘(b) COMPOSITION OF CONFERENCE.—
‘‘(1) IN GENERAL.—The Conference shall be com-
prised of—
‘‘(A) representatives of eligible public school
systems, including members of the governing
body of local educational agencies, school super-
intendents, and classroom teachers;
‘‘(B) representatives of the Congress, the De-
partment of Education, and other Federal agen-
cies;
‘‘(C) State elected officials and representa-
tives from State educational agencies;
‘‘(D) individuals with special knowledge of,
and expertise in, rural education, including in-
dividuals involved with rural postsecondary edu-
cation; and
‘‘(E) individuals with special knowledge of,
and expertise in, rural business.
‘‘(2) SELECTION.—The President shall select one-
third of the participants of the Conference, the Major-
ity Leader of the Senate shall select one-third of such
participants, and the Speaker of the House of Rep-
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SEC. 212. REPEAL.
Section 400A of the Act (20 U.S.C. 1221–3) is re-
pealed.
PART B—THE DEPARTMENT OF EDUCATION
SEC. 221. NEW HEADING FOR PART A.
The heading for part A of the Act is amended to read
as follows:
‘‘PART A—FUNCTIONS OF THE DEPARTMENT OF
EDUCATION’’.
SEC. 222. GENERAL AUTHORITY OF THE SECRETARY.
Section 408 of the Act (20 U.S.C. 1221e–3) is amended
to read as follows:
‘‘GENERAL AUTHORITY OF THE SECRETARY
‘‘SEC. 408. The Secretary, in order to carry out func-
tions otherwise vested in the Secretary by law or by delega-
tion of authority pursuant to law, and subject to limita-
tions as may be otherwise imposed by law, is authorized
to make, promulgate, issue, rescind, and amend rules and
regulations governing the manner of operation of, and gov-
erning the applicable programs administered by, the De-
partment.’’.
SEC. 223. REPEALS.
Sections 401, 402, 403 (20 U.S.C. 1221c), 406 (20
U.S.C. 1221e–1), 406A (20 U.S.C. 1221e–1a), 406B (20
U.S.C. 1221e–1b), 406C (20 U.S.C. 1221e–1c), and 407 (20
U.S.C. 1221e–2) of the Act are repealed.