382 
‘‘(iii) In the case of a local educational 
agency providing a free public education to stu-
dents enrolled in kindergarten through grade 12, 
but which enrolls students described in subpara-
graphs (A), (B), and (D) of subsection (a)(1) 
only in grades 9 through 12, and which received 
a final payment in fiscal year 2009 calculated 
under this paragraph (as this paragraph was in 
effect on the day before the date of enactment of 
the Student Success Act) for students in grades 
9 through 12, the Secretary shall, in calculating 
the agency’s payment, consider only that portion 
of such agency’s total enrollment of students in 
grades 9 through 12 when calculating the per-
centage under clause (i)(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 clause 
(i)(II).’’; and 
(ii) by adding at the end the following: 
‘‘(v) In the case of a local educational agen-
cy that is providing a program of distance edu-
cation to children not residing within the geo-
graphic boundaries of the agency, the Secretary 
shall— 
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383 
‘‘(I) for purposes of the calculation 
under clause (i)(I), disregard such children 
from the total number of children in aver-
age daily attendance at the schools served 
by such agency; and 
‘‘(II) for purposes of the calculation 
under clause (i)(II), disregard any funds re-
ceived for such children from the total cur-
rent expenditures for such agency.’’; 
(B) in subparagraph (C), by striking ‘‘sub-
paragraph (D) or (E) of paragraph (2), as the 
case may be’’ and inserting ‘‘paragraph (2)(D)’’; 
and 
(C) by amending subparagraph (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— 
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384 
‘‘(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 of the excess 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 as cal-
culated under subparagraphs (B) and (C) of 
the agency.’’; and 
(D) by inserting at the end the following 
new subparagraphs: 
‘‘(E) INSUFFICIENT
PAYMENTS.—For each 
fiscal year described in subparagraph (A) for 
which the sums appropriated under section 
3(d)(2) are insufficient to pay each local edu-
cational agency all of the local educational agen-
cy’s threshold payment described in subpara-
graph (D), the Secretary shall ratably reduce the 
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385 
payment to each local educational agency under 
this paragraph. 
‘‘(F) INCREASES.—If the sums appropriated 
under section 3(d)(2) are sufficient to increase 
the threshold payment above the 100 percent 
threshold payment described in subparagraph 
(D), then the Secretary shall increase payments 
on the same basis as such payments were re-
duced, except no local educational agency may 
receive a payment amount greater than 100 per-
cent of the maximum payment calculated under 
this subsection.’’; and 
(5) in paragraph (4)— 
(A) in subparagraph (A), by striking 
‘‘through (D)’’ and inserting ‘‘and (C)’’; and 
(B) in subparagraph (B), by striking ‘‘sub-
paragraph (D) or (E)’’ and inserting ‘‘subpara-
graph (C) or (D)’’. 
(c) PRIOR YEAR DATA.—Paragraph (2) of section 
8003(c) (20 U.S.C. 7703(c)) is amended 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 ap-
plication for payment if such agency— 
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386 
‘‘(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 the heads of other Federal agen-
cies)— 
‘‘(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) and (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 Interior; 
and 
‘‘(ii) that is the direct result of closure 
or realignment of military installations 
under the base closure process or the reloca-
tion of members of the Armed Forces and 
civilian employees of the Department of De-
fense as part of the force structure changes 
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387 
or movements of units or personnel between 
military installations or because of actions 
initiated by the Secretary of the Interior or 
the head of another Federal agency; or 
‘‘(C) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an increase in enrollment (as deter-
mined by the Secretary)— 
‘‘(i) of not less than 10 percent of chil-
dren described in subsection (a)(1) or not 
less than 100 of such children; and 
‘‘(ii) that is the direct result of the clo-
sure of a local educational agency that re-
ceived a payment under subsection (b)(1) or 
(b)(2) in the previous fiscal year.’’. 
(d) 
CHILDREN
WITH
DISABILITIES.—Section 
8003(d)(1) (20 U.S.C. 7703(d)) is amended by striking 
‘‘section 8014(c)’’ and inserting ‘‘section 3(d)(3)’’. 
(e) HOLD-HARMLESS.—Section 8003(e) (20 U.S.C. 
7703(e)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
total amount the Secretary shall pay a local edu-
cational agency under subsection (b)— 
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389 
(f) MAINTENANCE
OF EFFORT.—Section 8003 (20 
U.S.C. 7703) is amended by striking subsection (g). 
SEC. 404. POLICIES AND PROCEDURES RELATING TO CHIL-
DREN RESIDING ON INDIAN LANDS. 
Section 8004(e)(9) is amended by striking ‘‘Bureau of 
Indian Affairs’’ and inserting ‘‘Bureau of Indian Edu-
cation’’. 
SEC. 405. APPLICATION FOR PAYMENTS UNDER SECTIONS 
8002 AND 8003. 
Section 8005(b) (20 U.S.C. 7705(b)) is amended in the 
matter preceding paragraph (1) by striking ‘‘and shall con-
tain such information,’’. 
SEC. 406. CONSTRUCTION. 
Section 8007 (20 U.S.C. 7707) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
(B) in paragraph (2), by adding at the end 
the following: 
‘‘(C) The agency is eligible under section 
4003(b)(2) or is receiving basic support pay-
ments under circumstances described in section 
4003(b)(2)(B)(ii).’’; and 
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390 
(C) in paragraph (3), by striking ‘‘section 
8014(e)’’ each place it appears and inserting 
‘‘section 3(d)(4)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
(B) in paragraph (3)— 
(i) in subparagraph (C)(i)(I), by add-
ing at the end the following: 
‘‘(cc) At least 10 percent of the 
property in the agency is exempt from 
State and local taxation under Federal 
law.’’; and 
(ii) by adding at the end the following: 
‘‘(F) LIMITATIONS
ON
ELIGIBILITY
RE-
QUIREMENTS.—The Secretary shall not limit eli-
gibility— 
‘‘(i) under subparagraph (C)(i)(I)(aa), 
to those local educational agencies in which 
the number of children determined under 
section 8003(a)(1)(C) for each such agency 
for the preceding school year constituted 
more than 40 percent of the total student 
enrollment in the schools of each such agen-
cy during the preceding school year; and 
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391 
‘‘(ii) under subparagraph (C)(i)(I)(cc), 
to those local educational agencies in which 
more than 10 percent of the property in 
each such agency is exempt from State and 
local taxation under Federal law.’’; 
(C) in paragraph (6)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘in such manner, 
and accompanied by such information’’ and 
inserting ‘‘and in such manner’’; and 
(ii) by striking subparagraph (F); and 
(D) by striking paragraph (7). 
SEC. 407. FACILITIES. 
Section 8008 (20 U.S.C. 7708) is amended in sub-
section (a), by striking ‘‘section 8014(f)’’ and inserting ‘‘sec-
tion 3(d)(5)’’. 
SEC. 408. STATE CONSIDERATION OF PAYMENTS PRO-
VIDING STATE AID. 
Section 8009(c)(1)(B) (20 U.S.C. 7709(c)(1)(B)) is 
amended by striking ‘‘and contain the information’’. 
SEC. 409. FEDERAL ADMINISTRATION. 
Section 8010(d)(2) (20 U.S.C. 7710(d)(2)) is amended, 
by striking ‘‘section 8014’’ and inserting ‘‘section 3(d)’’. 
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392 
SEC. 410. ADMINISTRATIVE HEARINGS AND JUDICIAL RE-
VIEW. 
Section 8011(a) (20 U.S.C. 7711(a)) is amended by 
striking ‘‘or under the Act’’ and all the follows through 
‘‘1994)’’. 
SEC. 411. DEFINITIONS. 
Section 8013 (20 U.S.C. 7713) is amended— 
(1) in paragraph (1), by striking ‘‘and Marine 
Corps’’ and inserting ‘‘Marine Corps, and Coast 
Guard’’; 
(2) in paragraph (4), by striking ‘‘and title VI’’; 
(3) in paragraph (5)(A)(iii)— 
(A) in subclause (II), by striking ‘‘Stewart 
B. McKinney Homeless Assistance Act’’ and in-
serting ‘‘McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11411)’’; and 
(B) in subclause (III), by inserting before 
the semicolon, ‘‘(25 U.S.C. 4101 et seq.)’’; 
(4) in paragraph (8)(A), by striking ‘‘and 
verified by’’ and inserting ‘‘, and verified by,’’; and 
(5) in paragraph (9)(B), by inserting a comma 
before ‘‘on a case-by-case basis’’. 
SEC. 412. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 (20 U.S.C. 7801) is repealed. 
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393 
SEC. 413. CONFORMING AMENDMENTS. 
(a) IMPACT AID IMPROVEMENT ACT OF 2012.—Sub-
section (c) of the Impact Aid Improvement Act of 2012 (20 
U.S.C. 6301 note; Public Law 112–239; 126 Stat 1748) is 
amended— 
(1) by striking paragraphs (1) and (4); and 
(2) by redesignating paragraphs (2) and (3), as 
paragraphs (1) and (2), respectively. 
(b) REPEAL.—Title IV (20 U.S.C. 7101 et seq.), as 
amended by section 501(b)(2) of this Act, is repealed. 
(c) TRANSFER AND REDESIGNATION.—Title VIII (20 
U.S.C. 7701 et seq.), as amended by this title, is redesig-
nated as title IV (20 U.S.C. 7101 et seq.), and transferred 
and inserted after title III (as amended by this Act). 
(d) TITLE VIII REFERENCES.—The Act (20 U.S.C. 
6301 et seq.) is amended— 
(1) by redesignating sections 8001 through 8005 
as sections 4001 through 4005, respectively; 
(2) by redesignating sections 8007 through 8013 
as sections 4007 through 4013, respectively; 
(3) by striking ‘‘section 8002’’ each place it ap-
pears and inserting ‘‘section 4002’’; 
(4) by striking ‘‘section 8002(b)’’ each place it 
appears and inserting ‘‘section 4002(b)’’; 
(5) by striking ‘‘section 8003’’ each place it ap-
pears and inserting ‘‘section 4003’’, respectively; 
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394 
(6) by striking ‘‘section 8003(a)’’ each place it 
appears and inserting ‘‘section 4003(a)’’; 
(7) by striking ‘‘section 8003(a)(1)’’ each place it 
appears and inserting ‘‘section 4003(a)(1)’’; 
(8) by striking ‘‘section 8003(a)(1)(C)’’ each 
place 
it 
appears 
and 
inserting 
‘‘section 
4003(a)(1)(C)’’; 
(9) by striking ‘‘section 8002(a)(2)’’ each place it 
appears and inserting ‘‘section 4002(a)(2)’’; 
(10) by striking ‘‘section 8003(b)’’ each place it 
appears and inserting ‘‘section 4003(b)’’; 
(11) by striking ‘‘section 8003(b)(1)’’ each place 
it appears and inserting ‘‘section 4003(b)(1)’’; 
(12) in section 4002(b)(1)(C) (as so redesig-
nated), by striking ‘‘section 8003(b)(1)(C)’’ and in-
serting ‘‘section 4003(b)(1)(C)’’; 
(13) in section 4002(k)(1) (as so redesignated), 
by striking ‘‘section 8013(5)(C)(iii)’’ and inserting 
‘‘section 4013(5)(C)(iii)’’; 
(14) in section 4005 (as so redesignated)— 
(A) in the section heading, by striking 
‘‘8002
AND
8003’’ and inserting ‘‘4002
AND 
4003’’; 
(B) by striking ‘‘or 8003’’ each place it ap-
pears and inserting ‘‘or 4003’’; 
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