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)— 
(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 
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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 
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-
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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— 
‘‘(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 
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‘‘(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 
‘‘(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-
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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 
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.— 
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‘‘(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 
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).’’; 
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‘‘(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-
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— 
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‘‘(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), 
(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 
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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-
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-
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smartinez on DSK6TPTVN1PROD with BILLS
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 
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 
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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)’’; 
(I) by redesignating subparagraph (H) as 
subparagraph (G); and 
(J) in subparagraph (G) (as so redesig-
nated by subparagraph (K)— 
(i) in clause (i)— 
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smartinez on DSK6TPTVN1PROD with BILLS
(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 
(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 
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