‘‘(8) describes how programs under this part will 
be coordinated with programs under this Act, and 
other programs as appropriate; 
‘‘(9) contains an assurance that the State edu-
cational agency— 
‘‘(A) will make awards for programs for a 
period of not more than 5 years; and 
‘‘(B) will require each eligible entity seeking 
such an award to submit a plan describing how 
the project to be funded through the award will 
continue after funding under this part ends, if 
applicable; and 
‘‘(10) contains an assurance that funds appro-
priated to carry out this part will be used to supple-
ment, and not supplant, State and local public funds 
expended to provide programs and activities author-
ized under this part and other similar programs. 
‘‘(b) DEEMED APPROVAL.—An application submitted 
by a State educational agency pursuant to subsection (a) 
shall be deemed to be approved by the Secretary unless the 
Secretary makes a written determination, prior to the expi-
ration of the 120-day period beginning on the date on which 
the Secretary received the application, that the application 
is not in compliance with this part. 
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‘‘(c) DISAPPROVAL.—The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hear-
ing. 
‘‘(d) NOTIFICATION.—If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this part, the Secretary shall— 
‘‘(1) give the State educational agency notice 
and an opportunity for a hearing; and 
‘‘(2) notify the State educational agency of the 
finding of noncompliance, and, in such notification, 
shall— 
‘‘(A) cite the specific provisions in the ap-
plication that are not in compliance; and 
‘‘(B) request additional information, only 
as to the noncompliant provisions, needed to 
make the application compliant. 
‘‘(e) RESPONSE.—If the State educational agency re-
sponds to the Secretary’s notification described in sub-
section (d)(2) during the 45-day period beginning on the 
date on which the agency received the notification, and re-
submits the application with the requested information de-
scribed in subsection (d)(2)(B), the Secretary shall approve 
or disapprove such application prior to the later of— 
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‘‘(1) the expiration of the 45-day period begin-
ning on the date on which the application is resub-
mitted; or 
‘‘(2) the expiration of the 120-day period de-
scribed in subsection (b). 
‘‘(f) FAILURE TO RESPOND.—If the State educational 
agency does not respond to the Secretary’s notification de-
scribed in subsection (d)(2) during the 45-day period begin-
ning on the date on which the agency received the notifica-
tion, such application shall be deemed to be disapproved. 
‘‘(g) RULE OF CONSTRUCTION.—An application sub-
mitted by a State educational agency pursuant to sub-
section (a) shall not be approved or disapproved based upon 
the activities for which the agency may make funds avail-
able to eligible entities under section 3204 if the agency’s 
use of funds is consistent with section 3204(b). 
‘‘SEC. 3204. LOCAL COMPETITIVE GRANT PROGRAM. 
‘‘(a) IN GENERAL.—A State that receives funds under 
this part for a fiscal year shall provide the amount made 
available under section 3202(c)(1) to eligible entities in ac-
cordance with this section. 
‘‘(b) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—An eligible entity that re-
ceives an award under this part shall use the funds 
for activities that— 
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‘‘(A) are evidence-based; 
‘‘(B) 
will 
improve 
student 
academic 
achievement; 
‘‘(C) are allowable under State law; and 
‘‘(D) focus on one or more projects from the 
following two categories: 
‘‘(i) Supplemental student support ac-
tivities such as before, after, or summer 
school activities, tutoring, and expanded 
learning time, but not including athletics or 
in-school learning activities. 
‘‘(ii) Activities designed to support stu-
dents, such as academic subject specific pro-
grams, adjunct teacher programs, extended 
learning time programs, and parent engage-
ment, but not including activities to— 
‘‘(I) support smaller class sizes or 
construction; or 
‘‘(II) provide compensation or 
benefits to teachers, school leaders, 
other school officials, or local edu-
cational agency staff. 
‘‘(2) PARTICIPATION OF CHILDREN ENROLLED IN 
PRIVATE SCHOOLS.—An eligible entity that receives 
an award under this part shall ensure compliance 
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with section 5501 (relating to participation of chil-
dren enrolled in private schools). 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive an 
award under this part, an eligible entity shall submit 
an application to the State educational agency at 
such time, in such manner, and including such infor-
mation as the State educational agency may reason-
ably require, including the contents required by para-
graph (2). 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the activities to be 
funded and how they are consistent with sub-
section (b); 
‘‘(B) an assurance that funds under this 
part will be used to increase the level of State, 
local, and other non-Federal funds that would, 
in the absence of funds under this part, be made 
available for programs and activities authorized 
under this part, and in no case supplant State, 
local, or non-Federal funds; 
‘‘(C) an assurance that the community will 
be given notice of an intent to submit an appli-
cation with an opportunity for comment, and 
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that the application will be available for public 
review after submission of the application; and 
‘‘(D) an assurance that students who benefit 
from any activity funded under this part shall 
continue to maintain enrollment in a public ele-
mentary or secondary school. 
‘‘(d) REVIEW.—In reviewing local applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality of 
such applications but the review shall be limited to the like-
lihood that the project will increase student academic 
achievement. 
‘‘(e) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this part equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
‘‘(f) AWARD.—A grant shall be awarded to all eligible 
entities that submit an application that meets the require-
ments of this section in an amount that is not less than 
$10,000, but there shall be only one minimum award grant-
ed to any one local educational agency. 
‘‘(g) DURATION OF AWARDS.—Grants under this part 
may be awarded for a period of not more than 5 years. 
‘‘(h) ELIGIBLE ENTITY DEFINED.—In this section, the 
term ‘eligible entity’ means— 
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‘‘(1) a local educational agency in partnership 
with a community-based organization, business enti-
ty, or nongovernmental entity; 
‘‘(2) a consortium of local educational agencies 
working in partnership with a community-based or-
ganization, business entity, or nongovernmental enti-
ty; 
‘‘(3) a community-based organization in part-
nership with a local educational agency and, if appli-
cable, a business entity or nongovernmental entity; or 
‘‘(4) a business entity in partnership with a 
local educational agency and, if applicable, a commu-
nity-based organization or nongovernmental entity. 
‘‘SEC. 3205. AWARDS TO NONGOVERNMENTAL ENTITIES TO 
IMPROVE ACADEMIC ACHIEVEMENT. 
‘‘(a) IN GENERAL.—From the amount reserved under 
section 3202(c)(2), a State educational agency shall award 
grants to nongovernmental entities, including public or pri-
vate organizations, community-based or faith-based organi-
zations, and business entities for a program or project to 
increase the academic achievement of public school students 
attending public elementary or secondary schools (or both) 
in compliance with the requirements in this section. Subject 
to the availability of funds, the State educational agency 
shall award a grant to each eligible applicant that meets 
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the requirements in a sufficient size and scope to support 
the program. 
‘‘(b) APPLICATION.—The State educational agency 
shall require an application that includes the following in-
formation: 
‘‘(1) A description of the program or project the 
applicant will use the funds to support. 
‘‘(2) A description of how the applicant is using 
or will use other State, local, or private funding to 
support the program or project. 
‘‘(3) A description of how the program or project 
will help increase student academic achievement, in-
cluding the evidence to support this claim. 
‘‘(4) A description of the student population the 
program or project is targeting to impact, and if the 
program will prioritize students in high-need local 
educational agencies. 
‘‘(5) A description of how the applicant will con-
duct sufficient outreach to ensure students can par-
ticipate in the program or project. 
‘‘(6) A description of any partnerships the appli-
cant has entered into with the local educational agen-
cies or other entities the applicant will work with, if 
applicable. 
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‘‘(7) A description of how the applicant will 
work to share evidence-based and other effective strat-
egies from the program or project with local edu-
cational agencies and other entities working with stu-
dents to increase academic achievement. 
‘‘(8) An assurance that students who benefit from 
any program or project funded under this section 
shall continue to maintain enrollment in a public ele-
mentary or secondary school. 
‘‘(c) MATCHING CONTRIBUTION.—An eligible appli-
cant receiving a grant under this section shall provide, ei-
ther directly or through private contributions, non-Federal 
matching funds equal to not less than 50 percent of the 
amount of the grant. 
‘‘(d) REVIEW.—The State educational agency shall re-
view the application to ensure that— 
‘‘(1) the applicant is an eligible applicant; 
‘‘(2) the application clearly describes the re-
quired elements in subsection (b); 
‘‘(3) the entity meets the matching requirement 
described in subsection (c); and 
‘‘(4) the program is allowable and complies with 
Federal, State, and local laws. 
‘‘(e) DISTRIBUTION OF FUNDS.—If the application re-
quests exceed the funds available, the State educational 
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agency shall prioritize projects that support students in 
high-need local educational agencies and ensure geographic 
diversity, including serving rural, suburban, and urban 
areas. 
‘‘(f) ADMINISTRATIVE COSTS.—Not more than 1 per-
cent of a grant awarded under this section may be used 
for administrative costs. 
‘‘SEC. 3206. REPORT. 
‘‘Each recipient of a grant under section 3204 or 3205 
shall report to the State educational agency on— 
‘‘(1) the success of the program in reaching the 
goals of the program; 
‘‘(2) a description of the students served by the 
program and how the students’ academic achievement 
improved; and 
‘‘(3) the results of any evaluation conducted on 
the success of the program.’’. 
TITLE III—IMPACT AID 
SEC. 301. PURPOSE. 
Section 8001 (20 U.S.C. 7701) is amended by striking 
‘‘challenging State standards’’ and inserting ‘‘State aca-
demic standards’’. 
SEC. 302. PAYMENTS RELATING TO FEDERAL ACQUISITION 
OF REAL PROPERTY. 
Section 8002 (20 U.S.C. 7702) is amended— 
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(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘2003’’ and inserting ‘‘2018’’; and 
(B) in paragraph (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 re-
productions of those records) or other records 
that the Secretary determines to be appropriate 
and reliable, including Federal agency records or 
local historical records, aggregating 10 percent 
or more of the assessed value of—’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(B), by striking ‘‘sec-
tion 8014(a)’’ and inserting ‘‘section 3(c)(1)’’; 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) DETERMINATION OF ESTIMATED TAXABLE 
VALUE FOR ELIGIBLE FEDERAL PROPERTY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in determining the estimated taxable 
value of eligible Federal property located within 
the boundaries of a local educational agency for 
fiscal year 2013 and each succeeding fiscal year, 
the Secretary shall carry out the following: 
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‘‘(i) Determine the total taxable value 
of real property located within the bound-
aries of such local educational agency for 
the purpose of levying a property tax for 
current expenditures. 
‘‘(ii) Determine the per acre value of 
the eligible Federal property by dividing— 
‘‘(I) the total taxable value deter-
mined under clause (i), by 
‘‘(II) the difference between the 
total acres located within the bound-
aries of the local educational agency 
and the number of Federal acres in 
that agency eligible under this section. 
‘‘(iii) Multiply— 
‘‘(I) the per acre value calculated 
under clause (ii), by 
‘‘(II) the number of Federal acres 
in that agency eligible under this sec-
tion. 
‘‘(B) SPECIAL RULE.—In a case in which a 
local educational agency shares eligible Federal 
property with 2 or more local educational agen-
cies, the local educational agency may elect to 
have the Secretary— 
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‘‘(i) calculate the per acre value of the 
eligible Federal property of each such local 
educational agency in accordance with sub-
paragraph (A); and 
‘‘(ii) carry out the calculation under 
subparagraph (A)(iii) by multiplying— 
‘‘(I) the average of the per acre 
values of such eligible Federal prop-
erties, by 
‘‘(II) the acres of the Federal 
property in that agency eligible under 
this section.’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) APPLICATION
OF
CURRENT
LEVIED
REAL 
PROPERTY
TAX
RATE.—In calculating the amount 
that a local educational agency is eligible to receive 
for a fiscal year, the Secretary shall apply the current 
levied real property tax rate for current expenditures 
levied by fiscally independent local educational agen-
cies, or imputed for fiscally dependent local edu-
cational agencies, to the current annually determined 
estimated taxable value of such acquired Federal 
property as calculated under paragraph (2).’’; 
(3) by amending subsection (f) to read as follows: 
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‘‘(f) SPECIAL RULE.—Beginning with fiscal year 
2013, a local educational agency shall be deemed to meet 
the requirements of subsection (a)(1)(C) if records to deter-
mine eligibility under such subsection were destroyed prior 
to fiscal year 2000 and the agency received funds under 
subsection (b) in the previous year.’’; 
(4) by amending subsection (g) to read as fol-
lows: 
‘‘(g) FORMER DISTRICTS.— 
‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 
and each succeeding fiscal year, if a local educational 
agency described in paragraph (2) is formed at any 
time after 1938 by the consolidation of two or more 
former school districts, the local educational agency 
may elect to have the Secretary determine its eligi-
bility and any amount for which the local edu-
cational agency is eligible under this section for such 
fiscal year on the basis of one or more of those former 
districts, as designated by the local educational agen-
cy. 
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency described in this 
paragraph is— 
‘‘(A) any local educational agency that, for 
fiscal year 1994 or any preceding fiscal year, 
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applied for, and was determined to be eligible 
under section 2(c) of the Act of September 20, 
1950 (Public Law 874, 81st Congress) as that 
section was in effect for that fiscal year; or 
‘‘(B) a local educational agency formed by 
the consolidation of 2 or more school districts, at 
least one of which was eligible for assistance 
under this section for the fiscal year preceding 
the year of the consolidation, if— 
‘‘(i) for fiscal years 2006 through 2012, 
the local educational agency notifies the 
Secretary not later than 30 days after the 
date of enactment of the Encouraging Inno-
vation and Effective Teachers Act of the des-
ignation described in paragraph (1); and 
‘‘(ii) for fiscal year 2013, and each 
subsequent fiscal year, the local educational 
agency includes the designation in its ap-
plication under section 8005 or any timely 
amendment to such application. 
‘‘(3) AVAILABILITY OF FUNDS.—Notwithstanding 
any other provision of law limiting the period during 
which the Secretary may obligate funds appropriated 
for any fiscal year after fiscal year 2005, the Sec-
retary may obligate funds remaining after final pay-
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ments have been made for any of such fiscal years to 
carry out this subsection.’’; 
(5) in subsection (h)— 
(A) by striking ‘‘section 8014(a)’’ and in-
serting ‘‘section 3(c)(1)’’; 
(B) by amending paragraph (1) to read as 
follows: 
‘‘(1) FOUNDATION PAYMENTS.— 
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 3(c)(1) for the fiscal 
year involved, the Secretary shall first make a 
payment to the following local educational agen-
cies: 
‘‘(i) Each local educational agency that 
received a payment under this section for 
fiscal year 2006 and was eligible for a pay-
ment under this section for fiscal year 2006. 
‘‘(ii) Each local educational agency 
that did not receive a payment under this 
section for fiscal year 2006 but was newly 
eligible for a payment under this section 
after fiscal year 2006. 
‘‘(B) AMOUNT.—The amount of payment 
under subparagraph (A) for a local educational 
agency shall be determined as follows: 
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‘‘(i) For a local educational agency de-
scribed in subparagraph (A)(i) the amount 
of payment shall be equal to 90 percent of 
the amount received by such local edu-
cational agency under subsection (b) for fis-
cal year 2006. 
‘‘(ii) For a local educational agency 
described in subparagraph (A)(ii) the 
amount of payment shall be determined 
by— 
‘‘(I) calculating a payment esti-
mate for fiscal year 2006 for such local 
educational agency under subsection 
(b) in the same manner as payments 
were determined for local educational 
agencies eligible for and receiving pay-
ments for fiscal year 2006 under such 
section; and 
‘‘(II) multiplying the amount de-
termined under subclause (I) by 90 
percent. 
‘‘(C) FOUNDATION PAYMENT.—The amount 
of payments calculated under clause (i) or (ii) of 
subparagraph (B) for a local educational agency 
shall be considered the local educational agency’s 
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foundation payments for each succeeding fiscal 
year. 
‘‘(D) INSUFFICIENT
APPROPRIATIONS.—If 
the amount appropriated under section 3(c)(1) is 
insufficient to pay the full amount determined 
under this paragraph for all eligible local edu-
cational agencies for the fiscal year, then the 
Secretary shall ratably reduce the payment to 
each such local educational agency under this 
paragraph.’’; 
(C) by amending paragraph (2) to read as 
follows: 
‘‘(2) REMAINING
FUNDS.—From any amounts 
remaining after making payments under paragraph 
(1) for the fiscal year involved, the Secretary shall— 
‘‘(A) sum the amounts determined for all el-
igible local educational agencies under subsection 
(b)(2); 
‘‘(B) determine each eligible local edu-
cational agency’s proportional share of the 
amount calculated under subparagraph (A); and 
‘‘(C) pay each eligible local educational 
agency its share of the remaining funds based on 
the proportion calculated under subparagraph 
(B).’’; and 
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(D) by striking paragraphs (3) and (4); 
(6) by repealing subsections (i) and (k); 
(7) by redesignating subsection (l) as subsection 
(i); 
(8) by amending subsection (i) (as so redesig-
nated) by striking ‘‘(h)(4)(B)’’ and inserting ‘‘(h)(2)’’; 
(9) by repealing subsection (m); and 
(10) by redesignating subsection (n) as sub-
section (j). 
SEC. 303. PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN. 
(a) COMPUTATION OF PAYMENT.—Section 8003(a) (20 
U.S.C. 7703(a)) is amended— 
(1) in the matter preceding subparagraph (A) of 
paragraph (1), by inserting after ‘‘schools of such 
agency’’ the following: ‘‘(including those children en-
rolled in such agency as a result of the open enroll-
ment policy of the State in which the agency is lo-
cated, but not including children who are enrolled in 
a distance education program at such agency and 
who are not residing within the geographic bound-
aries of such agency)’’; 
(2) in paragraph (4)— 
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(A) in the heading, by striking ‘‘OR RE-
BUILDING’’ and inserting ‘‘, REBUILDING, OR AU-
THORIZED FOR DEMOLITION’’; 
(B) in subparagraph (A), by striking ‘‘or 
rebuilding’’ each place it appears and inserting 
‘‘, rebuilding, or authorized for demolition by the 
Secretary of Defense or the head of another Fed-
eral agency’’; and 
(C) in subparagraph (B)— 
(i) by striking ‘‘or rebuilding’’ each 
place it appears and inserting ‘‘, rebuild-
ing, or authorized for demolition by the Sec-
retary of Defense or the head of another 
Federal agency’’; and 
(ii) by striking ‘‘3 fiscal years’’ each 
place it appears and inserting ‘‘4 fiscal 
years (which are not required to run con-
secutively)’’; and 
(3) in paragraph (5)(A), by inserting after 
‘‘1984,’’ the following: ‘‘or under lease of off-base 
property under subchapter IV of chapter 169 of title 
10, United States Code,’’. 
(b) BASIC SUPPORT PAYMENTS
FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.—Section 8003(b) 
(20 U.S.C. 7703(b)) is amended— 
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(1) by striking ‘‘section 8014(b)’’ each place it 
appears and inserting ‘‘section 3(c)(2)’’; 
(2) in paragraph (1), by repealing subparagraph 
(E); 
(3) in paragraph (2)— 
(A) in subparagraph (A), by inserting at 
the end the following: 
‘‘(iii) The Secretary shall— 
‘‘(I) deem each local educational 
agency that received a basic support 
payment under this paragraph for fis-
cal year 2009 as eligible to receive a 
basic support payment under this 
paragraph for each of fiscal years 
2010, 2011, and 2012; and 
‘‘(II) make a payment to each 
such local educational agency under 
this paragraph for each of fiscal years 
2010, 2011, and 2012.’’; and 
(B) in subparagraph (B)— 
(i) by striking ‘‘CONTINUING’’ in the 
heading; 
(ii) by amending clause (i) to read as 
follows: 
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‘‘(i) IN GENERAL.—A heavily impacted 
local educational agency is eligible to re-
ceive a basic support payment under sub-
paragraph (A) with respect to a number of 
children determined under subsection (a)(1) 
if the agency— 
‘‘(I) is a local educational agen-
cy— 
‘‘(aa) whose boundaries are 
the same as a Federal military 
installation or an island property 
designated by the Secretary of the 
Interior to be property that is 
held in trust by the Federal Gov-
ernment; and 
‘‘(bb) that has no taxing au-
thority; 
‘‘(II) is a local educational agency 
that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enrollment 
of the agency that is not less than 
45 percent; 
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‘‘(bb) has a per-pupil ex-
penditure that is less than— 
‘‘(AA) for an agency 
that has a total student en-
rollment of 500 or more stu-
dents, 125 percent of the av-
erage per-pupil expenditure 
of the State in which the 
agency is located; or 
‘‘(BB) for any agency 
that has a total student en-
rollment 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 lo-
cated; and 
‘‘(cc) is an agency that— 
‘‘(AA) has a tax rate for 
general fund purposes that is 
not less than 95 percent of 
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the average tax rate for gen-
eral fund purposes of com-
parable 
local 
educational 
agencies in the State; or 
‘‘(BB) was eligible to re-
ceive a payment under this 
subsection for fiscal year 
2012 and is located in a 
State that by State law has 
eliminated ad valorem tax as 
a revenue for local edu-
cational agencies; 
‘‘(III) is a local educational agen-
cy that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enrollment 
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 av-
erage enrollment of children who 
are not described in subsection 
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(a)(1) and who are eligible for a 
free or reduced price lunch under 
the Richard B. Russell National 
School Lunch Act constitutes a 
percentage of the total student en-
rollment 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 125 percent of the aver-
age tax rate for general fund pur-
poses for comparable local edu-
cational agencies in the State; 
‘‘(IV) is a local educational agen-
cy that has a total student enrollment 
of not less than 25,000 students, of 
which— 
‘‘(aa) not less than 50 per-
cent are children described in sub-
section (a)(1); and 
‘‘(bb) not less than 5,500 of 
such children are children de-
scribed in subparagraphs (A) and 
(B) of subsection (a)(1); or 
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100 
‘‘(V) is a local educational agency 
that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) including, for purposes of 
determining eligibility, those chil-
dren described in subparagraphs 
(F) and (G) of such subsection, 
that is not less than 35 percent of 
the total student enrollment of the 
agency; and 
‘‘(bb) was eligible to receive 
assistance 
under 
subparagraph 
(A) for fiscal year 2001.’’; and 
(iii) in clause (ii)— 
(I) by striking ‘‘A heavily’’ and 
inserting the following: 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), a heavily’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(II) LOSS OF ELIGIBILITY DUE 
TO
FALLING
BELOW
PERCENT
OF 
THE AVERAGE TAX RATE FOR GENERAL 
FUND PURPOSES.—In a case of a heav-
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101 
ily impacted local educational agency 
that fails to meet the requirements of 
clause (i) for a fiscal year by reason of 
having a tax rate for general fund pur-
poses that falls below 95 percent of the 
average tax rate for general fund pur-
poses of comparable local educational 
agencies in the State, subclause (I) 
shall be applied as if ‘and the subse-
quent fiscal year’ were inserted before 
the period at the end.’’; 
(C) by striking subparagraph (C); 
(D) by redesignating subparagraphs (D) 
through (H) as subparagraphs (C) through (G), 
respectively; 
(E) in subparagraph (C) (as so redesig-
nated)— 
(i) in the heading, by striking ‘‘REG-
ULAR’’; 
(ii) by striking ‘‘Except as provided in 
subparagraph (E)’’ and inserting ‘‘Except 
as provided in subparagraph (D)’’; 
(iii) by amending subclause (I) of 
clause (ii) to read as follows: 
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102 
‘‘(ii)(I)(aa) For a local educational agency 
with respect to which 35 percent or more of the 
total student enrollment of the schools of the 
agency are children described in subparagraph 
(D) or (E) (or a combination thereof) of sub-
section (a)(1), and that has an enrollment of 
children described in subparagraphs (A), (B), or 
(C) of such subsection equal to at least 10 per-
cent of the agency’s total enrollment, the Sec-
retary shall calculate the weighted student units 
of those children described in subparagraph (D) 
or (E) of such subsection by multiplying the 
number of such children by a factor of 0.55. 
‘‘(bb) Notwithstanding subitem (aa), a local 
educational agency that received a payment 
under this paragraph for fiscal year 2006 shall 
not be required to have an enrollment of children 
described in subparagraphs (A), (B), or (C) of 
subsection (a)(1) equal to at least 10 percent of 
the agency’s total enrollment.’’; and 
(iv) by amending subclause (III) of 
clause (ii) by striking ‘‘(B)(i)(II)(aa)’’ and 
inserting ‘‘subparagraph (B)(i)(I)’’; 
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103 
(F) in subparagraph (D)(i)(II) (as so redes-
ignated), by striking ‘‘6,000’’ and inserting 
‘‘5,500’’; 
(G) in subparagraph (E) (as so redesig-
nated)— 
(i) by striking ‘‘Secretary’’ and all 
that follows through ‘‘shall use’’ and insert-
ing ‘‘Secretary shall use’’; 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
(iii) by striking clause (ii); 
(H) in subparagraph (F) (as so redesig-
nated), 
by 
striking 
‘‘subparagraph 
(C)(i)(II)(bb)’’ and inserting ‘‘subparagraph 
(B)(i)(II)(bb)’’; 
(I) in subparagraph (G) (as so redesig-
nated)— 
(i) in clause (i)— 
(I) by striking ‘‘subparagraph 
(B), (C), (D), or (E)’’ and inserting 
‘‘subparagraph (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 
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104 
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, the following: ‘‘or during such 
time as activities associated with base 
closure 
and 
realignment, 
modularization, force structure change, 
or force relocation are ongoing’’; and 
(ii) in clause (ii), by striking ‘‘(D) or 
(E)’’ each place it appears and inserting 
‘‘(C) or (D)’’; 
(4) in paragraph (3)— 
(A) in subparagraph (B)— 
(i) by amending clause (iii) to read as 
follows: 
‘‘(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 
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105 
under this paragraph (as this paragraph was in 
effect on the day before the date of enactment of 
the 
Encouraging 
Innovation 
and 
Effective 
Teachers Act) for students in grades 9 through 
12, the Secretary shall, in calculating the agen-
cy’s payment, consider only that portion of such 
agency’s total enrollment of students in grades 9 
through 12 when calculating the percentage 
under clause (i)(I) and only that portion of the 
total current expenditures attributed to the oper-
ation 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— 
‘‘(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 
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106 
‘‘(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— 
‘‘(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-
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107 
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(c)(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 
payment to each local educational agency under 
this paragraph. 
‘‘(F) INCREASES.—If the sums appropriated 
under section 3(c)(2) are sufficient to increase 
the threshold payment above the 100 percent 
threshold payment described in subparagraph 
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108 
(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— 
‘‘(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 
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109 
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 
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 
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110 
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(c)(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)— 
‘‘(A) for fiscal year 2013, shall not be 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 2012; 
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111 
‘‘(B) for fiscal year 2014, shall not be 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 2012; and 
‘‘(C) for fiscal year 2015, shall not be less 
than 80 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 2012.’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) MAXIMUM AMOUNT.—The total amount pro-
vided to a local educational agency under subpara-
graph (A), (B), or C of paragraph (1) for a fiscal 
year shall not exceed the maximum basic support 
payment amount for such agency determined under 
paragraph (1) or (2) of subsection (b), as the case 
may be, for such fiscal year.’’. 
(f) MAINTENANCE
OF EFFORT.—Section 8003 (20 
U.S.C. 7703) is amended by striking subsection (g). 
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112 
SEC. 304. 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. 305. 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. 306. 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(c)(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 
(C) in paragraph (3), by striking ‘‘section 
8014(e)’’ each place it appears and inserting 
‘‘section 3(c)(4)’’; and 
(2) in subsection (b)— 
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115 
‘‘(1) IN GENERAL.—The Secretary shall pay the 
full amount that a local educational agency is eligible 
to receive under this title not later than September 30 
of the second fiscal year following the fiscal year for 
which such amount has been appropriated if, not 
later than 1 calendar year following the fiscal year in 
which such amount has been appropriated, such local 
educational agency submits to the Secretary all the 
data and information necessary for the Secretary to 
pay the full amount that the agency is eligible to re-
ceive under this title for such fiscal year. 
‘‘(2) PAYMENTS WITH RESPECT TO FISCAL YEARS 
IN
WHICH
INSUFFICIENT
FUNDS
ARE
APPRO-
PRIATED.—For a fiscal year in which the amount ap-
propriated under section 3(c) is insufficient to pay 
the full amount a local educational agency is eligible 
to receive under this title, paragraph (1) shall be ap-
plied by substituting ‘is available to pay the agency’ 
for ‘the agency is eligible to receive’ each place it ap-
pears.’’. 
SEC. 310. 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)’’. 
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116 
SEC. 311. DEFINITIONS. 
Section 8013 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. 114111 et seq.)’’; and 
(B) in subclause (III), by inserting before 
the semicolon, ‘‘(26 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. 312. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 (20 U.S.C. 7801) is repealed. 
SEC. 313. CONFORMING AMENDMENTS. 
(a) REPEAL.—Title IV (20 U.S.C. 7101 et seq.), as 
amended by section 201(b)(2) of the Student Success Act, 
is repealed. 
(b) TRANSFER AND REDESIGNATION.—Title VIII (20 
U.S.C. 7701 et seq.), as amended by this title, is redesig-
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117 
nated as title IV (20 U.S.C. 7101 et seq.), and transferred 
and inserted after title III (as amended by this Act). 
(c) TITLE IV.—The heading relating to title IV of such 
Act (20 U.S.C. 7101 et seq.) is amended to read as follows: 
‘‘TITLE IV—IMPACT AID’’. 
(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; 
(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)’’; 
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118 
(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), by striking ‘‘sec-
tion 
8003(b)(1)(C)’’ 
and 
inserting 
‘‘section 
4003(b)(1)(C)’’; 
(13) in section 4002(j)(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’’; 
(C) in subsection (b)(2), by striking ‘‘section 
8004’’ and inserting ‘‘section 4004’’; and 
(D) in subsection (d)(2), by striking ‘‘sec-
tion 8003(e)’’ and inserting ‘‘section 4003(e)’’; 
(15) in section 4007(a)(3)(A)(i) (as so redesig-
nated), by striking ‘‘section 8008(a)’’ and inserting 
‘‘section 4008(a)’’; 
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119 
(16) in section 4007(a)(4) (as so redesignated), 
by striking ‘‘section 8013(3)’’ and inserting ‘‘section 
4013(3)’’; and 
(17) in section 4009 (as so redesignated)— 
(A) in subsection (b)(1)— 
(i) by striking ‘‘or 8003(b)’’ and in-
serting ‘‘or 4003(b)’’; 
(ii) 
by 
striking 
‘‘section 
8003(a)(2)(B)’’ 
and 
inserting 
‘‘section 
4003(a)(2)(B)’’; and 
(iii) by striking ‘‘section 8003(b)(2)’’ 
and inserting ‘‘section 4003(b)(2)’’; 
(B) by striking ‘‘section 8011(a)’’ each place 
it appears and inserting ‘‘section 4011(a)’’; and 
(18) in section 4010(c)(2)(D) (as so redesig-
nated) by striking ‘‘section 8009(b)’’ and inserting 
‘‘section 4009(b)’’. 
TITLE IV—TROOPS-TO- 
TEACHERS PROGRAM 
SEC. 401. TROOPS-TO-TEACHERS PROGRAM. 
(a) TRANSFER
OF FUNCTIONS.—The responsibility 
and authority for operation and administration of the 
Troops-to-Teachers Program is transferred from the Sec-
retary of Education to the Secretary of Defense. 
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120 
(b) ENACTMENT AND MODIFICATION OF PROGRAM AU-
THORITY IN TITLE 10, UNITED STATES CODE.— 
(1) IN GENERAL.—Chapter 58 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 1154. Assistance to eligible members to obtain em-
ployment as teachers: troops-to-teachers 
program 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) PROGRAM.—The term ‘Program’ means the 
Troops-to-Teachers Program authorized by this sec-
tion. 
‘‘(2) CHARTER
SCHOOL.—The term ‘charter 
school’ has the meaning given that term in section 
5101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7221i). 
‘‘(3) MEMBER
OF
THE
ARMED
FORCES.—The 
term ‘member of the Armed Forces’ includes a former 
member of the Armed Forces. 
‘‘(4) ADDITIONAL
TERMS.—The terms ‘elemen-
tary school’, ‘local educational agency’, ‘secondary 
school’, and ‘State’ have the meanings given those 
terms in section 5101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
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