I 
111TH CONGRESS 
1ST SESSION H. R. 2280 
To reauthorize the impact aid program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2009 
Ms. HIRONO (for herself, Mr. TERRY, Mr. KISSELL, Mr. YOUNG of Alaska, 
Mr. MCINTYRE, Mrs. CAPPS, Mr. GONZALEZ, Mr. DICKS, Mr. COSTELLO, 
Mr. LARSEN of Washington, and Mr. SIRES) introduced the following bill; 
which was referred to the Committee on Education and Labor 
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 ‘‘Fair Funding for 
Schools Act of 2009’’. 
SEC. 2. PAYMENTS RELATING TO FEDERAL ACQUISITION 
OF REAL PROPERTY. 
Section 8002 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7702) is amended— 
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(1) in subsection (a)(1)(C), by amending the 
matter preceding clause (i) to read as follows: 
‘‘(C) had an assessed value (according to 
original records (including facsimiles or other 
reproductions of those records) documenting 
the assessed value of such property (determined 
as of the time or times when so acquired) pre-
pared by a legally authorized official or other 
records that the Secretary determines to be ap-
propriate and reliable, including Federal agency 
records or local historical records) aggregating 
10 percent or more of the assessed value 
of—’’; 
(2) in subsection (f) by striking paragraphs (4) 
and (5); 
(3) in subsection (h) by striking paragraphs (1) 
through (4) and inserting the following: 
‘‘(1) FOUNDATION
PAYMENTS
FOR
CURRENT 
ELIGIBLE LOCAL EDUCATIONAL AGENCIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
first make a foundation payment to each local 
educational agency that was eligible for a pay-
ment under this section for fiscal year 2006. 
‘‘(B) AMOUNT.—The amount of payment 
under subparagraph (A) for a local educational 
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all such agencies) bears to the percentage share de-
termined (in the same manner) for all local edu-
cational agencies eligible to receive a payment under 
this section for the fiscal year, except that, for the 
purpose of calculating a local educational agency’s 
maximum payment under subsection (b), data from 
the most current fiscal year shall be used.’’; 
(4) by striking subsections (i), (k), and (m); 
and 
(5) by redesignating subsection (l) and (n) as 
(i) and (j), respectively. 
SEC. 3. 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 chil-
dren enrolled in a distance learning program 
not residing within the geographic boundaries 
of the agency),’’; 
(B) in paragraph (2)— 
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(i) by redesignating subparagraphs 
(D) through (F) as (E) through (G), re-
spectively; 
(ii) by inserting after subparagraph 
(C) the following: 
‘‘(D) Multiply the number of children de-
scribed in subparagraphs (A) and (B) of para-
graph (1) by a factor of 1.35 if the local edu-
cational agency has a total student enrollment 
of not less that 25,000 students, of which not 
less than 50 percent are children described in 
paragraph (1) and not less than 6,000 are chil-
dren described in subparagraphs (A) and (B) of 
paragraph (1).’’; and 
(iii) in subparagraph (F) (as so redes-
ignated) by striking ‘‘.10’’ and inserting 
‘‘.05’’; 
(C) in paragraph (4)(B), in each of clauses 
(i)(I) and (ii)(I), by striking ‘‘3 fiscal years’’ 
and inserting ‘‘4 fiscal years’’; and 
(D) in paragraph (5)(A) by inserting after 
‘‘1984,’’ the following: ‘‘or under lease of off- 
base property under subchapter IV of chapter 
169 of part IV on subtitle A of title 10, United 
States Code (10 U.S.C. 2871 et. seq.),’’; 
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(2) subsection (b)(2)— 
(A) in subparagraph (B)— 
(i) in the subparagraph heading by 
striking ‘‘CONTINUING’’; 
(ii) in clause (i) by striking subclauses 
(I) and (II) and inserting the following: 
‘‘(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, or the agency; 
‘‘(II) has an enrollment of chil-
dren described in subsection (a)(1) 
that constitutes a percentage of the 
total student enrollment of the agency 
that is not less than 40 percent; 
‘‘(III) has a per-pupil expendi-
ture that is less than— 
‘‘(aa) for a local educational 
agency that has a total student 
enrollment of 350 or more stu-
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dents, 120 percent of the average 
per-pupil 
expenditure 
of 
the 
State in which the agency is lo-
cated; or 
‘‘(bb) for a local educational 
agency that has a total student 
enrollment of less than 350— 
‘‘(AA) 120 percent of 
the average per-pupil ex-
penditure of the State in 
which the agency is located; 
or 
‘‘(BB) the average per- 
pupil expenditure of 3 com-
parable 
local 
educational 
agencies in the State in 
which the agency is located; 
‘‘(IV) has a tax rate for general 
fund purposes that is at least 95 per-
cent of the average tax rate for gen-
eral fund purposes of comparable local 
educational agencies in the State; 
‘‘(V) for a local educational agen-
cy that has an enrollment of children 
described in subsection (a)(1) that 
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constitutes a percentage of the total 
student enrollment of the agency 
which is not less than 30 percent, and 
has a tax rate for general fund pur-
poses which is not less that 125 per-
cent of the average tax rate for gen-
eral fund purposes for comparable 
local educational agencies in the 
State; and 
‘‘(VI) for a local educational 
agency that was eligible to receive a 
payment under this subsection for fis-
cal year 2008 and is located in a 
State that by State law has eliminated 
ad valorem tax as a revenue source 
for local educational agencies, the Sec-
retary shall consider such agency as 
meeting the requirements of subclause 
(IV).’’; and 
(iii) by adding at the end of the fol-
lowing: 
‘‘(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-
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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 striking subparagraphs (C), (D), 
and (E); 
(C) by inserting after subparagraph (B) 
the following: 
‘‘(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 
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(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.’’; 
(D) by redesignating subparagraph (F) as 
(D) and, in that subparagraph— 
(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’’; 
(E) by redesignating subparagraph (G) as 
(E) and, in that subparagraph, in the matter 
preceding clause (i), by striking ‘‘(C)(i)(II)(bb)’’ 
and inserting ‘‘(B)(i)(II)(bb)’’; 
(F) by redesignating subparagraph (H) as 
(F) and, in that subparagraph— 
(i) in clause (i)— 
(I) by striking ‘‘(B), (C), (D), or 
(E),’’ and inserting ‘‘(B) or (C),’’; 
(II) by striking ‘‘by reason of’’ 
and inserting ‘‘due to’’; 
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(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)’’; 
(3) in subsection (b)(3)(B)— 
(A) by redesignating clause (iv) as (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 
geographic boundaries of the agency, the 
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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)’’. 
(5) in subsection (b)(3), by amending subpara-
graph (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 140 
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 paragraphs (1) 
or (2) (as the case may be) by multiplying— 
‘‘(i) a percentage, the denominator of 
which is the difference between the full 
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amount computed under paragraphs (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 paragraphs (1) or 
(2) (as the case may be) for the agency 
and the amount of the threshold payment 
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; 
or 
‘‘(B) was eligible to receive a payment 
under this section for the previous fiscal year 
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and has had an overall increase in enrollment 
(as determined by the Secretary of Education 
in consultation with the Secretary of Defense, 
the Secretary of Interior, or the heads of 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 
of Defense or the Department of the 
Interior; 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 
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of Interior or the head of another Federal 
agency.’’; 
(7) in subsection (e) by striking paragraphs (1) 
and (2) and inserting the following: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the total amount the Secretary shall pay a local edu-
cation agency— 
‘‘(A) for fiscal year 2009, shall be not less 
than 95 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2008; 
‘‘(B) for fiscal year 2010, shall be not less 
than 90 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2008; and 
‘‘(C) for fiscal year 2011, shall be not less 
than 85 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2008 of which such amount shall be con-
sidered a foundation payment for each suc-
ceeding fiscal year until such time as the agen-
cy’s maximum payment as determined under 
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paragraphs (1) or (2) of subsection (b), as the 
case may be, exceeds the amount provided for 
under this subparagraph. 
‘‘(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 fis-
cal year, then the Secretary shall ratably reduce 
the payments to all 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. 4. APPLICATION FOR PAYMENTS UNDER SECTIONS 
8002 AND 8003. 
Section 8005 of that Act (20 U.S.C. 7705) is amend-
ed by inserting a new subsection (e) as follows: 
‘‘(e) For the purpose of meeting the requirements of 
section 222.35 of the Code of Federal Regulations, the 
Secretary shall establish a third option for an applicant 
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when counting its federally connected children by using 
the date established by the applicant to register the stu-
dents of such applicant for the fiscal year for which the 
application is filed.’’. 
SEC. 5. 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: 
‘‘(2) AMOUNT OF PAYMENTS.— 
‘‘(A) LOCAL
EDUCATION
AGENCIES
IM-
PACTED
BY
MILITARY
DEPENDENT
CHIL-
DREN.—The amount of a payment to each local 
educational agency described in this subsection 
that is impacted by military dependent children 
for a fiscal year shall be equal to— 
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‘‘(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. 
‘‘(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-
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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)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘60 per-
cent’’ and inserting ‘‘20 percent’’; 
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(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 
school during the preceding school 
year.’’. 
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