Impact Aid Law

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SEC. 7001. [20 U.S.C. 7701] PURPOSE.

In order to fulfill the Federal responsibility to assist with the provision of educational services to

federally connected children in a manner that promotes control by local educational agencies with

little or no Federal or State involvement, because certain activities of the Federal Government, such

as activities to fulfill the responsibilities of the Federal Government with respect to Indian tribes and

activities under section 511 of the Service members Civil Relief Act, place a financial burden on the

local educational agencies serving areas where such activities are carried out, and to help such

children meet the same challenging State academic standards, it is the purpose of this title to

provide financial assistance to local educational agencies that—

1. experience a substantial and continuing financial 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. educate heavy concentrations of children whose parents are civilian employees of

the Federal Government and do not reside on Federal property; or

5. need special assistance with capital expenditures for construction activities because

of the enrollments of substantial numbers of children who reside on Federal lands

and because of the difficulty of raising local revenue through bond referendums for

capital projects due to the inability to tax Federal property.

SEC. 7002. [20 U.S.C. 7702] PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL

PROPERTY.

1. IN GENERAL.—Where the Secretary, after consultation with any local educational agency

and with the appropriate State educational agency, determines—

1. that the United States owns Federal property in the local educational agency, and

that such property—

1. has been acquired by the United States since 1938;

2. was not acquired by exchange for other Federal property in the local

educational agency which the United States owned before 1939; and

3. 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)

prepared by the local officials referred to in subsection (b)(3) or, when such

original records are not available due to unintentional destruction (such as

natural disaster, fire, flooding, pest infestation, or deterioration due to age),

other records, including Federal agency records, local historical records, or

other records that the Secretary determines to be appropriate and reliable,

aggregating 10 percent or more of the assessed value of—

(i) all real property in the local educational agency (similarly determined as of

the time or times when such Federal property was so acquired); or (ii) all real

property in the local educational agency as assessed in the first year

preceding or succeeding acquisition, whichever is greater, only if— (I) the

assessment of all real property in the local educational agency is not made

at the same time or times that such Federal property was so acquired and

assessed; and (II) State law requires an assessment 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 such

agency shall be eligible to receive the amount described in subsection (b) or (h).

2. AMOUNT.—

1. IN GENERAL.—(A)(i)(I) Subject to subclauses (II) and (III), the amount that a local

educational agency shall be paid under subsection (a) for a fiscal year shall be

calculated in accordance with paragraph (2).

1. Except as provided in subclause (III), the Secretary may not reduce the

amount of a payment under this section to a local educational agency for a

fiscal year by (aa) the amount equal to the amount of revenue, if any, the

agency received during the previous fiscal year from activities conducted on

Federal property eligible under this section and located in a school district

served by the agency, including amounts received from any Federal

department or agency (other than the Department of Education) from such

activities, by reason of receipt of such revenue, or (bb) any other amount by

reason of receipt of such revenue.

2. If the amount equal to the sum of (aa) the proposed payment under this

section to a local educational agency for a fiscal year and (bb) the amount of

revenue described in subclause (II)(aa) received by the agency during the

previous fiscal year, exceeds the maximum amount the agency is eligible to

receive under this section for the fiscal year involved, then the Secretary

shall reduce the amount of the proposed payment under this section by an

amount equal to such excess amount.

3. For purposes of clause (i), the amount of revenue that a local educational

agency receives during the previous fiscal year from activities conducted on

Federal property shall not include payments received by the agency from the

Secretary of Defense to support—

1. the operation of a domestic dependent elementary or secondary

school; or

2. the provision of a free public education to dependents of members

of the Armed Forces residing on or near a military installation.

4. If funds appropriated under section 7014(a) are insufficient to pay the

amount determined under subparagraph (A), the Secretary shall calculate

the payment for each eligible local educational agency in accordance with

subsection (h).

5. 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 7003(b), exceeds the

maximum amount that such agency is eligible to receive for such fiscal year

under section 7003(b)(1)(C), or the maximum amount that such agency is

eligible to receive for such fiscal year under this section, whichever is

greater.

2. 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 agencies, or imputed

for fiscally dependent local educational agencies, to the current annually determined

estimated taxable value of such acquired Federal property.

3. DETERMINATION OF TAXABLE VALUE FOR ELIGIBLE FEDERAL PROPERTY.—

1. IN GENERAL.—In determining the estimated taxable value of such acquired

Federal property for fiscal year 2010 and each succeeding fiscal year, the

Secretary shall—

1. first determine the total taxable value for the purpose of levying

property tax for school purposes for current expenditures of real

property located within the boundaries of such local educational

agency;

2. then determine the per acre value of the eligible Federal property by

dividing the total taxable value as determined in clause (i) by the

difference between the total acres located within the boundaries of

the local educational agency and the number of Federal acres

eligible under this section; and

3. then determine the total taxable value of the eligible Federal property

by multiplying the per acre value as calculated under clause (ii) by

the number of Federal acres eligible under this section.

2. SPECIAL RULE.—In the case of Federal property eligible under this section

that is within the boundaries of 2 or more local educational agencies that are

eligible under this section, any of such agencies may ask the Secretary to

calculate (and the Secretary shall calculate) the taxable value of the eligible

Federal property that is within its boundaries by—

1. first calculating the per-acre value of the eligible Federal property

separately for each eligible local educational agency that shared the

Federal property, as provided in subparagraph (A)(ii);

2. then averaging the resulting per-acre values of the eligible Federal

property from each eligible local educational agency that shares the

Federal property; and

3. then applying the average per-acre value to determine the total

taxable value of the eligible Federal property under subparagraph

(A)(iii) for the requesting local educational agency.

3. APPLICABILITY TO TENNESSEE VALLEY AUTHORITY ACT.—For the purpose of this section, any

real property 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.

4. OWNERSHIP BY UNITED STATES.—The United States shall be deemed to own Federal

property for the purposes of this Act, where—

1. prior to the transfer of Federal property, the United States owned Federal property

meeting the requirements of subparagraphs (A), (B), and (C) of subsection (a)(1); and

2. the United States transfers a portion of the property referred to in paragraph (1) to

another nontaxable entity, and the United States—

1. restricts some or any construction on such property;

2. requires that the property be used in perpetuity for the public purposes for

which the property was conveyed;

3. requires the grantee of the property to report to the Federal Government (or

its agent) regarding information on the use of the property;

4. except with the approval of the Federal 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

5. reserves to the Federal Government a right of reversion at any time the

Federal Government (or its agent) deems it necessary for the national

defense.

5. LOCAL EDUCATIONAL AGENCY CONTAINING FOREST SERVICE LAND

AND SERVING CERTAIN COUNTIES.—Beginning with fiscal year 1995, a local educational

agency shall be deemed to meet the requirements of subsection (a)(1)(C) if such local

educational agency meets the following requirements:

1. ACREAGE AND ACQUISITION BY THE FOREST SERVICE.— The local educational agency

serves a school district that 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. COUNTY CHARTER.—The local educational agency serves a county chartered under

State law in 1875 or 1890. For each fiscal year beginning on or after the date of

enactment of the Every Student Succeeds Act, the Secretary shall treat local

educational agencies chartered in 1871 having more than 70 percent of the county

in Federal ownership as meeting the eligibility requirements of subparagraphs (A)

and (C) of subsection (a)(1).

6. SPECIAL RULE.—For each fiscal year beginning on or after the date of enactment of the

Every Student Succeeds Act, a local educational agency shall be deemed to meet the

requirements of subsection (a)(1)(C) if the agency was eligible under paragraph (1) or (3) of

section 7002(f) as such section was in effect on the day before the date of enactment of the

Every Student Succeeds Act.

7. 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 2 or more former school districts, the local educational agency

may elect to have the Secretary determine its eligibility for assistance under this

section for any fiscal year on the basis of 1 or more of those former districts, as

designated by the local educational agency.

2. ELIGIBLE LOCAL EDUCATIONAL AGENCIES.—A local educational agency referred to in

paragraph (1) is—

1. any local educational agency that, for fiscal year 1994 or any preceding

fiscal year, applied, and was determined to be eligible under, section 2(c) of

the Act of September 30, 1950 (Public Law 874, 81st Congress) as that

section was in effect for that fiscal year; or

2. a local educational agency—

1. that was formed by the consolidation of 2 or more districts, at least 1

of which was eligible for assistance under this section for the fiscal

year preceding the year of the consolidation; and

2. which includes the designation referred to in paragraph (1) in its

application under section 7005 for a fiscal year beginning on or after

the date of enactment of the Every Student Succeeds Act or any

timely amendment to such application.

3. AMOUNT.—A local educational agency eligible under paragraph (1) shall receive a

foundation payment as provided for under subparagraphs (A) and (B) of subsection

(h)(1), except that the foundation payment shall be calculated based on the most

recent payment received by the local educational agency based on its status prior

to consolidation.

8. PAYMENTS WITH RESPECT TO FISCAL YEARS

IN WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—For any fiscal year for which the

amount appropriated under section 7014(a) is insufficient to pay to each eligible local

educational agency the full amount determined under subsection (b), the Secretary shall

make payments to each local educational agency under this section as follows:

1. FOUNDATION PAYMENTS FOR PRE-2010 RECIPIENTS.—

1. IN GENERAL.—The Secretary shall first make a foundation payment to each

local educational agency that is determined by the Secretary to be eligible to

receive a payment under this section for the fiscal year involved and that

filed a timely application, and met, or has been determined by statute to

meet, the eligibility requirements of subsection (a) for fiscal year 2009.

2. AMOUNT.—

1. IN GENERAL.—The amount of a payment under subparagraph (A) for

a local educational agency shall be equal to the greater of 90 percent

of the payment the local educational agency received from dollars

appropriated for fiscal year 2009 or 90 percent of the average

payment that the local educational agency received from dollars

appropriated for fiscal years 2006, 2007, 2008, and 2009, and shall

be calculated without regard to the maximum payment provisions in

subsection (b)(1)(C).

2. EXCEPTION.—In calculating such average payment for a local

educational agency that did not receive a payment under subsection

(b) for 1 or more of the fiscal years between fiscal year 2006 and

2009, inclusive, the lowest such payment made to the agency for

fiscal year 2006, 2007, 2008, or 2009, shall be treated as the

payment that the agency received under subsection (b) for each

fiscal year for which the agency did not receive such a payment.

3. INSUFFICIENT APPROPRIATIONS.—If the amount appropriated under section

7014(a) is insufficient to pay the full amount determined under this

paragraph for all eligible local educational agencies for the fiscal year, then

the Secretary shall ratably reduce the payment to each local educational

agency under this paragraph.

2. FOUNDATION PAYMENTS FOR NEW APPLICANTS.—

1. FIRST YEAR.—From any amounts remaining after making payments under

paragraph (1) and subsection (i)(1) for the fiscal year involved, the Secretary

shall make a payment, in an amount determined in accordance with

subparagraph (C), to each local educational agency that the Secretary

determines eligible for a payment under this section for a fiscal year after

fiscal year 2009 and that did not receive a payment under paragraph (1) for

the fiscal year for which such agency was determined eligible for such

payment.

2. SECOND AND SUCCEEDING YEARS.—For any succeeding fiscal year after the

first fiscal year that a local educational agency receives a foundation

payment under subparagraph (A), the amount of the local educational

agency's foundation payment under this paragraph for such succeeding

fiscal year shall be equal to the local educational agency's foundation

payment under this paragraph for the first fiscal year.

3. AMOUNTS.—The amount of a payment under subparagraph (A) for a local

educational agency shall be determined as follows:

1. Calculate the local educational agency's maximum payment under

subsection (b).

2. Calculate the percentage that the amount appropriated under

section 7014(a) for the most recent fiscal year for which the

Secretary has completed making payments under this section is of

the total maximum payments for such fiscal year for all local

educational agencies eligible for a payment under subsection (b) and

multiply the agency's maximum payment by such percentage.

3. Multiply the amount determined under clause (ii) by 90 percent.

4. INSUFFICIENT FUNDS.—If the amount appropriated under section 7014(a) of

this title is insufficient to pay the full amount determined under this

paragraph for all eligible local educational agencies for the fiscal year, then

the Secretary shall ratably reduce the payment to each local educational

agency under this paragraph.

3. REMAINING FUNDS.—From any funds remaining after making payments under

paragraphs (1) and (2) for the fiscal year involved, the Secretary shall make a

payment to each local educational agency that received a foundation payment

under paragraph (1) or (2) or subsection (i)(1), for the fiscal year involved in an

amount that bears the same relation to the remainder as a percentage share

determined for the local educational agency (by dividing the maximum amount that

the agency is eligible to receive under subsection (b) by the total of the maximum

amounts for all such agencies) bears to the percentage share determined (in the

same manner) for all local educational agencies eligible to receive a payment under

this section for the fiscal year involved, except that, for the purpose of calculating a

local educational agency's maximum amount under subsection (b), data from the

most current fiscal year shall be used.

4. DATA.—For each local educational agency that received a payment under this

section for fiscal year 2010 or any succeeding fiscal year, the Secretary shall not

make a payment under paragraph (3) to a local educational agency that fails to

submit, within 60 days of the date the Secretary notifies the agency that the

information is needed, the data necessary to calculate the maximum amount of a

payment under subsection (b) for that local educational agency.

1. SPECIAL PAYMENTS.—

1. IN GENERAL.—For any fiscal year beginning with fiscal year 2000 for which the

amount appropriated to carry out this section exceeds the amount so appropriated

for fiscal year 1996 and for which subsection (b)(1)(B) applies, the Secretary shall

use the remainder described in subsection (h)(3) for the fiscal year involved (not to

exceed the amount equal to the difference between (A) the amount appropriated to

carry out this section for fiscal year 1997 and (B) the amount appropriated to carry

out this section for fiscal year 1996) to increase the payment that would otherwise

be made under this section to not more than 50 percent of the maximum amount

determined under subsection (b) for any local educational agency described in

paragraph (2).

2. LOCAL EDUCATIONAL AGENCY DESCRIBED.—A local educational agency described in

this paragraph is a local educational agency that—

1. received a payment under this section for fiscal year 1996;

2. serves a school district that contains all or a portion of a United States

military academy;

3. serves a school district in which the local tax assessor has certified that at

least 60 percent of the real property is federally owned; and

4. demonstrates to the satisfaction of the Secretary that such agency's perpupil

revenue derived from local sources for current expenditures is not less

than that revenue for the preceding fiscal year.

1. PRIOR YEAR DATA.—Notwithstanding any other provision of this

section, in determining the eligibility of a local educational agency for

a payment under subsection (b) or (h)(2) of this section for a fiscal

year, and in calculating the amount of such payment, the

Secretary—

1. shall use data from the prior fiscal year with respect to the

Federal property involved, including data with respect to the

assessed value of the property and the real property tax rate

for current expenditures levied against or imputed to the

property; and

2. shall use data from the second prior fiscal year with respect

to determining the amount of revenue referred to in

subsection (b)(1)(A)(i).

2. LOSS OF ELIGIBILITY.—

1. IN GENERAL.—Notwithstanding any other provision of this

section, the Secretary shall make a minimum payment to a

local educational agency described in paragraph (2), for the

first fiscal year that the agency loses eligibility for assistance

under this section as a result of property located within the

school district served by the agency failing to meet the

definition of Federal property under section 7013(5)(C)(iii), in

an amount equal to 90 percent of the amount received by the

agency under this section for the preceding year.

2. LOCAL EDUCATIONAL AGENCY DESCRIBED.—A local

educational agency described in this paragraph is an agency

that—

1. was eligible for, and received, a payment under this

section for fiscal year 2002; and

2. beginning in fiscal year 2003 or a subsequent fiscal

year, is no longer eligible for payments under this

section as provided for in subsection (a)(1)(C) as a

result of the transfer of the Federal property involved

to a non-Federal entity.

SEC. 7003. [20 U.S.C. 7703] PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

1. COMPUTATION OF PAYMENT.—

1. IN GENERAL.—For the purpose of computing the amount that a local educational

agency is eligible to receive under subsection (b) or (d) for any fiscal year, the

Secretary shall determine the number of children who were in average daily

attendance in the schools of such agency, and for whom such agency provided free

public education, during the preceding 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

(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 services

(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;

1. resided in low-rent housing;

2. resided on Federal property and is not described in subparagraph (A) or (B); or

3. resided with a parent employed on Federal property situated—

1. in whole or in part in the county in which such agency is located, or in whole or in

part in such agency if such agency is located in more than one county; or

2. if not in such county, in whole or in part in the same State as such agency.

1. DETERMINATION OF WEIGHTED STUDENT UNITS.—For the purpose of computing the

basic support payment under subsection (b), the Secretary shall calculate the total

number of weighted student units for a local educational agency by adding together

the results obtained by the following computations:

1. Multiply the number of children described in subparagraphs (A) and (B) of

paragraph (1) by a factor of 1.0.

2. Multiply the number of children described in paragraph (1)(C) by a factor of

1.25.

3. Multiply the number of children described in subparagraphs (A) and (B) of

paragraph (1) by a factor of .35 if the local educational agency has—

1. a number of such children described in such subparagraphs which

exceeds 5,000; and

2. an average daily attendance for all children which exceeds 100,000.

4. Multiply the number of children described in subparagraph (D) of paragraph

(1) by a factor of .20.

5. Multiply the number of children described in subparagraph (E) of paragraph

(1) by a factor of .10.

6. Multiply the number of children described in subparagraphs (F) and (G) of

paragraph (1) by a factor of .05.

2. SPECIAL RULE.—The Secretary shall only compute a payment for a local educational

agency for children described in subparagraph (F) or (G) of paragraph (1) if the

number of such children equals or exceeds 1,000 or such number equals or

exceeds 10 percent of the total number of students in average daily attendance in

the schools of such agency.

3. MILITARY INSTALLATION AND INDIAN HOUSING UNDERGOING RENOVATION OR

REBUILDING.—

1. MILITARY INSTALLATION HOUSING.—Beginning in fiscal year 2014, in

determining the amount of a payment for a local educational agency for

children described in paragraph (1)(D)(i), the Secretary shall consider those

children as if they were children described in paragraph (1)(B) if the

Secretary determines, on the basis of a certification provided to the

Secretary by a designated representative of the Secretary of Defense, that

those children would have resided in housing on Federal property if the

housing was not undergoing renovation or rebuilding. The total number of

children treated as children described in paragraph (1)(B) shall not exceed

the lessor of—

1. the total number of children eligible under paragraph (1)(B) for the

year prior to the initiation of the housing project on Federal property

undergoing renovation or rebuilding; or

2. the total number of Federally connected children enrolled at the local

educational agency as stated in the application filed for the payment

for the year for which the determination is made.

2. INDIAN LANDS.—Beginning in fiscal year 2014, in determining the amount of a

payment for a local educational agency that received a payment for children

that resided on Indian lands in accordance with paragraph (1)(C) for the

fiscal year prior to the fiscal year for which the local educational agency is

making an application, the Secretary shall consider those children to be

children described in paragraph (1)(C) if the Secretary determines on the

basis of a certification provided to the Secretary by a designated

representative of the Secretary of the Interior or the Secretary of Housing

and Urban Development that those children would have resided in housing

on Indian lands if the housing was not undergoing renovation or rebuilding.

The total number of children treated as children described in paragraph

(1)(C) shall not exceed the lessor of—

1. the total number of children eligible under paragraph (1)(C) for the

year prior to the initiation of the housing project on Indian lands

undergoing renovation or rebuilding; or

2. the total number of Federally connected children enrolled at the local

educational agency as stated in the application filed for the payment

for the year for which the determination is made.

3. ELIGIBLE HOUSING.—Renovation or rebuilding shall be defined as projects

considered as capitalization, modernization, or restoration, as defined by the

Secretary of Defense or the Secretary of the Interior (as the case may be)

and are projects that last more than 30 days, but do not include

''sustainment projects'' such as painting, carpeting, or minor repairs.

4. MILITARY ''BUILD TO LEASE'' PROGRAM HOUSING.—

1. [ 8 ]] IN GENERAL.—For purposes of computing the amount of payment for a

local educational agency for children identified under paragraph (1), the

Secretary shall consider children residing in housing initially acquired or

constructed under the former section 2828(g) of title 10, United States Code

(commonly known as the ''Build to Lease'' program), as added by section

801 of the Military Construction Authorization Act, 1984, or under lease of off

base property under subchapter IV of chapter 169 of title 10, United States

Code, to be children described under paragraph (1)(B), if the property

described is—

1. within the fenced security perimeter of the military facility; or

2. attached to, and under any type of force protection agreement with,

the military installation upon which such housing is situated.

2. ADDITIONAL REQUIREMENTS.—If the property described in subparagraph (A)

is not owned by the Federal Government, is subject to taxation by a State or

political subdivision of a State, and thereby generates revenues for a local

educational agency that is applying to receive a payment under this section,

then the Secretary—

1. shall require the local educational agency to provide certification

from an appropriate official of the Department of Defense that the

property is being used to provide military housing; and

2. shall reduce the amount of the payment under this section by an

amount equal to the amount of revenue from such taxation received

in the second preceding fiscal year by such local educational

agency, unless the amount of such revenue was taken into account

by the State for such second preceding fiscal year and already

resulted in a reduction in the amount of State aid paid to such local

educational agency.

2. BASIC SUPPORT PAYMENTS AND PAYMENTS WITH RESPECT TO FISCAL YEARS

IN WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—

1. BASIC SUPPORT PAYMENTS.—

1. IN GENERAL.—From the amount appropriated under section 7014(b) for a

fiscal year, the Secretary is authorized to make basic support payments to

eligible local educational agencies with children described in subsection (a).

2. ELIGIBILITY.—A local educational agency is eligible to receive a basic

support payment under subparagraph

1. for a fiscal year with respect to a number of children determined

under subsection (a)(1) only if the number of children so determined

with respect to such agency amounts to the lesser of—

1. at least 400 such children; or

2. a number of such children which equals at least 3 percent of

the total number of children who were in average daily

attendance, during such year, at the schools of such agency

and for whom such agency provided free public education.

2. MAXIMUM AMOUNT.—The maximum amount that a local educational

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), multiplied by the greater of—

1. 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;

2. one-half of the average per-pupil expenditure of all of the

States for the third fiscal year preceding the fiscal year for

which the determination is made;

3. 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

4. the average per-pupil expenditure of the State in which the

local educational agency is located, multiplied by the local

contribution percentage.

3. DATA.—If satisfactory data from the third preceding fiscal year are

not available for any of the expenditures described in clause (i) or (ii)

of subparagraph (C), the Secretary shall use data from the most

recent fiscal year for which data that are satisfactory to the Secretary

are available.

4. INCREASE IN LOCAL CONTRIBUTION RATE DUE TO UNUSUAL

GEOGRAPHIC FACTORS.—If the current expenditures in those local

educational agencies which the Secretary has determined to be

generally comparable to the local educational agency for which a

computation is made under subparagraph (C) are not reasonably

comparable 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 under subparagraph (C)(iii) by such an amount

which the Secretary determines will compensate such agency for the

increase in current expenditures necessitated by such unusual

geographical factors. The amount of any such supplementary

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.

5. Beginning with fiscal year 2002, for the purpose of calculating a

payment under this paragraph for a local educational agency whose

local contribution rate was computed under subparagraph (C)(iii) for

the previous year, the Secretary shall use a local contribution rate

that is not less than 95 percent of the rate that the LEA received for

the preceding year.

2. [ 9 ]

BASIC SUPPORT PAYMENTS

FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—

1. IN GENERAL.—(i) From the amount appropriated under section 7014(b) for a

fiscal year, the Secretary is authorized to make basic support payments to

eligible heavily impacted local educational agencies with children described

in subsection (a).

(ii) A local educational agency that receives a basic support payment under

this paragraph for a fiscal year shall not be eligible to receive a basic support

payment under paragraph (1) for that fiscal year.

2. ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—

1. IN GENERAL.—A heavily impacted local educational agency is eligible

to receive a basic support payment under subparagraph (A) with

respect to a number of children determined under subsection (a)(1) if

the agency—

1. is a local educational agency—

(aa) whose boundaries are the same as a Federal military

installation; or

(bb)(AA) whose boundaries are the same as an island

property designated by the Secretary of the Interior to be

property that is held in trust by the Federal Government; and

(BB) that has no taxing authority;

2. [ 10 ]

is a local educational agency that—

(aa) has an enrollment of children described in subsection

(a)(1) that constitutes a percentage of the total student

enrollment of the agency that is not less than 45 percent;

(bb) has a per-pupil expenditure that is less than—

(AA) for an agency that has a total student enrollment of 500

or more students, 125 percent of the average per-pupil

expenditure of the State in which the agency is located; or

(BB) for any agency that has a total student enrollment of

less than 500 students, 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

educational agencies in the State in which the agency is

located; and (cc) is an agency that has a tax rate for general

fund purposes that is not less than 95 percent of the average

tax rate for general fund purposes of comparable local

educational agencies in the State;

3. is a local educational agency that—

(aa) has a tax rate for general fund purposes which is not less

than 125 percent of the average tax rate for general fund

purposes for comparable local educational agencies in the

State; and

(bb)(AA) has an enrollment of children described in

subsection (a)(1) that constitutes a percentage of the total

student enrollment of the agency that is not less than 30

percent; or

(BB) has an enrollment of children described in subsection

(a)(1) that constitutes a percentage of the total student

enrollment of the agency that is not less than 20 percent, and

for the 3 fiscal years preceding the fiscal year for which the

determination is made, the average enrollment of children

who are not described in subsection (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 enrollment of the agency that is not less

than 65 percent and received assistance for fiscal year 2017

pursuant to subparagraph (G); and

(cc) received assistance under subparagraph (A) of section

8003(b)(2), as such section was in effect on the day before

the date of enactment of the Every Student Succeeds Act

(Public Law 114–95; 129 Stat. 1802), for a fiscal year prior to

fiscal year 2017;

4. is a local educational agency that received a payment for

fiscal year 2015 under section 8003(b)(2)(E) (as such section

was in effect for such fiscal year) and has a total student

enrollment of not less than 25,000 students, of which—

(aa) not less than 35 percent are children described in

subsection (a)(1); and

(AA) not less than 3,500 of such children are children

described in subparagraphs (A) and (B) of subsection (a)(1);

or

(BB) not less than 7,000 of such children are children

described in subparagraph (D) of subparagraph (a)(1);

5. 10 is a local educational agency that—

(aa) has an enrollment of children described in subsection

(a)(1) including, for purposes of determining eligibility, those

children described in subparagraphs (F) and (G) of such

subsection, that is not less than 35 percent of the total

student enrollment of the agency;

(bb) has a per-pupil expenditure described in subclause

(II)(bb) (except that a local educational agency with a total

student enrollment of less than 350 students shall be

deemed to have satisfied such per-pupil expenditure

requirement) and has a tax rate for general fund purposes

which is not less than 95 percent of the average tax rate for

general fund purposes for comparable local educational

agencies in the State; and

(cc) was eligible to receive assistance under subparagraph

(A) for fiscal year 2001.

2. LOSS OF ELIGIBILITY.—

1. 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 subparagraph (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.

2. LOSS OF ELIGIBILITY DUE TO FALLING BELOW 95 PERCENT OF

THE AVERAGE TAX RATE FOR GENERAL FUND PURPOSES.—In the

case of a heavily impacted local educational agency

described in subclause (II) or (V) of clause (i) that is eligible to

receive a basic support payment under subparagraph (A),

but that has had, for 2 consecutive fiscal years, a tax rate for

general fund purposes that falls below 95 percent of the

average tax rate for general fund purposes of comparable

local educational agencies in the State, such agency shall be

determined to be ineligible under clause (i) and ineligible to

receive a basic support payment under subparagraph (A) for

each fiscal year succeeding such 2 consecutive fiscal years

for which the agency has such a tax rate for general fund

purposes, and until the fiscal year for which the

agency resumes such eligibility in accordance with clause

(iii).

3. TAKEN OVER BY STATE BOARD OF EDUCATION.—In the case of

a heavily impacted local educational agency that is eligible to

receive a basic support payment under subparagraph (A),

but that has been taken over by a State board of education

in any 2 previous years, such agency shall be deemed to

maintain heavily impacted status for 2 fiscal years following

the date of enactment of the Every Student Succeeds Act.

3. RESUMPTION OF ELIGIBILITY.—A heavily impacted local educational

agency described in clause (i) that becomes ineligible under such

clause for 1 or more fiscal years may resume eligibility for a basic

support payment under this paragraph for a subsequent fiscal year

only if the agency meets the requirements of clause (i) for that

subsequent fiscal year, except that such agency shall not receive a

basic support payment under this paragraph until the fiscal year

succeeding the fiscal year for which the eligibility determination is

made.

3. MAXIMUM AMOUNT FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—

1. IN GENERAL.—Except as provided in subparagraph (D), the maximum

amount that a heavily impacted local educational 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 subject to clause (ii), multiplied by the greater of—

1. four-fifths 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; or

2. four-fifths of the average per-pupil expenditure of all of the

States for the third fiscal year preceding the fiscal year for

which the determination is made.

2. CALCULATION OF WEIGHTED STUDENT UNITS.—

1. IN GENERAL.—

(aa) PERCENTAGE ENROLLMENT.—For a

local educational agency in 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 subsection (a)(1), and that 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 enrollment, the Secretary 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) EXCEPTION.—Notwithstanding item (aa), a local

educational agency that received a payment under this

paragraph for fiscal year 2013 shall not be required to have

an enrollment of children described in subparagraph (A), (B),

or (C) of subsection (a)(1) equal to at least 10 percent of the

agency's total enrollment and shall be eligible for the student

weight as provided for in item (aa).

2. ENROLLMENT OF 100 OR FEWER CHILDREN.—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 number of

such children by a factor of 1.75.

3. ENROLLMENT OF MORE THAN 100 CHILDREN BUT LESS THAN

1000.—For a local educational agency that is not described

under subparagraph (B)(i)(I) and has an enrollment 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 multiplying the number of such children by a factor

of 1.25.

4. MAXIMUM AMOUNT FOR LARGE HEAVILY IMPACTED LOCAL EDUCATIONAL

AGENCIES.—

1. IN GENERAL.—

1. FORMULA.— Subject to clauses (ii), (iii), and (iv), 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

accordance with the formula described in paragraph (1)(C).

2. HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCY.—A heavily

impacted local educational agency described in this

subclause is a local educational agency that received a

payment for fiscal year 2015 under section 8003(b)(2)(E) (as

such section was in effect for such fiscal year) and hasa total

student enrollment of not less than 25,000 students, of which

not less than 35 percent are children described in subsection

(a)(1) and—

(aa) not less than 3,500 of such children are children

described in subparagraphs (A) and (B) of subsection (a)(1);

or

(bb) not less than 7,000 of such children are children

described in subparagraph (D) of subparagraph (a)(1).

2. FACTOR.—For purposes of calculating the maximum amount

described in clause (i), the factor used in determining the weighted

student units under subsection (a)(2) with respect to children

described in subparagraphs (A) and (B) of subsection (a)(1) shall be—

(I) for fiscal year 2016, 1.35;

(II) for each fiscal years 2017 and 2018, 1.38;

(III) for fiscal year 2019, 1.40;

(IV) for fiscal year 2020, 1.42; and

(V) for fiscal year 2021 and each fiscal year thereafter, 1.45.

5. FACTOR FOR CHILDREN WHO LIVE OFF BASE.— For purposes of calculating the

maximum amount described in clause (i), the factor used in determining the

weighted student units under subsection (a)(2) with respect to children

described in subsection (a)(1)(D) shall be—

(I) for fiscal year 2016, .20;

(II) for each fiscal years 2017 and 2018, .22;

(III) for fiscal year 2019 and 2020, .25;

(IV) for fiscal year 2021 and each fiscal year thereafter—

(aa) .30 with respect to each of the first 7,000 children; and

(bb) .25 with respect to the number of children exceeds 7,000.

3. SPECIAL RULE.— Notwithstanding clauses (ii) and (iii), for fiscal year 2020 or any

succeeding fiscal year, if the number of students who are children described in

subparagraphs (A) and (B) of subsection (a)(1) for a local educational agency subject

to this subparagraph exceeds 7,000 for such year or the number of students who

are children described in subsection (a)(1)(D) for such local educational agency

exceeds 12,750 for such year, then—

(I) the factor used, for the fiscal year for which the determination is being made, to

determine the weighted student units under subsection (a)(2) with respect to

children described in subparagraphs (A) and (B) of subsection (a)(1) shall be 1.40;

and

(II) the factor used, for such fiscal year, to determine the weighted student units

under subsection (a)(2) with respect to children described in subsection (a)(1)(D)

shall be .20.

3. DATA.—For purposes of providing assistance under this paragraph, the Secretary shall use

student, revenue, expenditure, and tax data from the third fiscal year preceding the fiscal

year for which the local educational agency is applying for assistance under this paragraph.

4. DETERMINATION OF AVERAGE TAX RATES FOR GENERAL FUND PURPOSES.—

1. IN GENERAL.—Except as provided in clause (ii), for the purpose of determining the

average tax rates for general fund purposes for local educational agencies in a State

under this paragraph, the Secretary shall use either—

1. the average tax rate for general fund purposes for comparable local

educational agencies, as determined by the Secretary in regulations; or

2. the average tax rate of all the local educational agencies in the State.

2. FISCAL YEARS 20102015.—

1. IN GENERAL.—For fiscal years 2010 through 2015, any local educational

agency that was found ineligible to receive a payment under subparagraph

(A) because the Secretary determined that it failed to meet the average tax

rate requirement for general fund purposes in subparagraph (B)(i)(II)(cc), shall

be considered to have met that requirement, if its State determined, through

an alternate calculation of average tax rates for general fund purposes, that

such local educational agency met that requirement.

2. SUBSEQUENT FISCAL YEARS AFTER 2015.— For any succeeding fiscal year

after 2015, any local educational agency identified in subclause (I) may

continue to have its State use that alternate methodology to calculate

whether the average tax rate requirement for general fund purposes under

subparagraph (B)(i)(II)(cc) is met.

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 2012, the Secretary shall reserve a total of $14,000,000

from funds that remain unobligated under this section from fiscal years 2015

or 2016 in order to make payments under this clause for fiscal years 2011

through 2014.

5. ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION

OF MILITARY HOUSING.—

1. ELIGIBILITY.—For any fiscal year, a heavily impacted local educational agency that

received a basic support payment under this paragraph for the prior fiscal year, but

is ineligible for such payment for the current fiscal year under subparagraph (B) due

to the conversion of military housing units to private housing described in clause (iii),

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, shall be deemed to meet the eligibility requirements under subparagraph

(B) for the period during which the housing units are undergoing such conversion or

during such time as activities associated with base closure and realignment,

modularization, force structure change, or force relocation are ongoing.

2. AMOUNT OF PAYMENT.—The amount of a payment to a heavily impacted local

educational agency for a fiscal year by reason of the application of clause (i), and

calculated in accordance with subparagraph (C) or (D), as the case may be, shall be

based on the number of children in average daily attendance in the schools of such

agency for the fiscal year and under the same provisions of subparagraph (C) or (D)

under which the agency was paid during the prior fiscal year.

3. CONVERSION OF MILITARY HOUSING UNITS TO PRIVATE HOUSING DESCRIBED.—For

purposes of clause (i), ''conversion of military housing units to private housing''

means the conversion of military housing units to private housing units pursuant to

subchapter IV of chapter 169 of title 10, United States Code, or pursuant to any

other related provision of law.

• PAYMENTS WITH RESPECT TO FISCAL YEARS IN WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.—

1. IN GENERAL.—For any fiscal year in which the sums appropriated under section 7014(b)

are insufficient to pay to each local educational agency the full amount computed under

paragraphs (1) and (2), the Secretary shall make payments in accordance with this

paragraph.

2. LEARNING OPPORTUNITY THRESHOLD PAYMENTS IN LIEU OF PAYMENTS UNDER PARAGRAPH

(1).—(i) For fiscal years described in subparagraph (A), the Secretary shall compute a

learning opportunity threshold payment (hereafter in this title referred to as the ''threshold

payment'') in lieu of basic support payments under paragraph (1) by multiplying the

amount obtained under paragraph (1)(C) by the total percentage obtained by adding—

1. the percentage of federally connected children for each local educational agency

determined by calculating the fraction, the numerator of which is the total number

of children described under subsection (a)(1) and the denominator of which is the

total number of children in average daily attendance at the schools served by such

agency; and

2. the percentage that funds under paragraph (1)(C) represent of the total budget of

the local educational agency, determined by calculating the fraction, the

numerator of which is the total amount of funds calculated for each local

educational agency under this paragraph, and the denominator of which is the

total current expenditures for such agency in the second preceding fiscal year for

which the determination is made.

3. Such total percentage used to calculate threshold payments under paragraph (1)

shall not exceed 100.

4. In the case of a local educational agency providing a free public education to

students enrolled in kindergarten through grade 12, that enrolls students described

in subparagraphs (A), (B), and (D) of subsection (a)(1) only in grades 9 through

12, and that received a final payment for fiscal year 2009 calculated under section

7003(b)(3) (as such section was in effect on the day before the date of enactment

of the Every Student Succeeds 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 percentage 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).

5. In the case of a local educational agency that has a total student enrollment of

fewer than 1,000 students and that has a per-pupil expenditure that is less than the

average per-pupil expenditure of the State in which the agency is located or less

than the average per-pupil expenditure of all the States, the total percentage used

to calculate threshold payments under clause (i) shall not be less than 40 percent.

3. LEARNING OPPORTUNITY THRESHOLD PAYMENTS IN LIEU OF PAYMENTS UNDER PARAGRAPH

(2).—For fiscal years described in subparagraph (A), the learning opportunity threshold

payment in lieu of basic support payments under paragraph (2) shall be equal to the

amount obtained under subparagraph (C) or (D) of paragraph (2), as the case may be.

4. RATABLE DISTRIBUTION.—For fiscal years described in subparagraph (A), for which the

sums available exceed the amount required 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

paragraphs (1) or (2) (as the case may be) by multiplying—

1. 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 educational

agencies and the amount of the threshold payment (as calculated under

subparagraphs (B) and (C)) of all local educational agencies, and the numerator of

which is the aggregate of the excess sums, by

2. 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

calculated under subparagraphs (B) or (C)) of the agency, except that no local

educational agency shall receive more than 100 percent of the maximum payment

calculated under subparagraph (C) or (D) of paragraph (2).

5. INSUFFICIENT PAYMENTS.—For each fiscal year described in subparagraph (A) for which

the sums appropriated are insufficient to pay each local educational agency all of the

local educational agency's threshold payment described in subparagraph (B), the

Secretary shall ratably reduce the payment to each local educational agency under this

paragraph.

6. INCREASES.

1. INCREASES BASED ON INSUFFICIENT FUNDS.—If additional funds become available

under 7014(b) for making payments under paragraphs (1) and (2) and those funds

are not sufficient to increase each local educational agency's threshold payment

above 100 percent of its threshold payment described in subparagraph (B),

payments that were reduced under subparagraph (E) shall be increased by the

Secretary on the same basis as such payments were reduced.

2. INCREASES BASED ON SUFFICIENT FUNDS.—If additional funds become available

under section 7014(b) for making payments under paragraphs (1) and (2) and

those funds are sufficient to increase each local educational agency's threshold

payment above 100 percent of its threshold payment described in subparagraph

(B), the payment for each local educational agency shall be 100 percent of its

threshold payment. The Secretary shall then distribute the excess sums to each

eligible local educational agency in accordance with subparagraph (D).

7. PROVISION OF TAX RATE AND RESULTING PERCENTAGE.—As soon as practicable following

the payment of funds under paragraph (2) to an eligible local educational agency, the

Secretary shall provide the local educational agency with a description of—

1. the tax rate of the local educational agency; and

2. the percentage such tax rate represents of the average tax rate for general fund

purposes of comparable local educational agencies in the State as determined

under subclauses (II)(cc), III(aa), or (V)(bb) of paragraph (2)(B)(i) (as the case

may be).

• STATES WITH ONLY ONE LOCAL EDUCATIONAL AGENCY.—

1. IN GENERAL.—In any of the 50 States of the United States in which there is only one local

educational agency, the Secretary shall, for purposes of subparagraphs (B) and

1. of paragraph (1) or subparagraphs (B) and (C) of paragraph (2), as the case may

be, paragraph (3) of this subsection, and subsection (e), consider each

administrative school district in the State to be a separate local educational

agency.

1. COMPUTATION OF MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENT AND

THRESHOLD PAYMENT.—In computing the maximum payment amount

under paragraph (1)(C) or subparagraph (C) or (D) of paragraph (2), as the

case may be, and the learning opportunity threshold payment under

subparagraph (B) or (C) of paragraph (3), as the case may be, for an

administrative school district described in subparagraph (A)—

1. the Secretary shall first determine the maximum payment amount

and the total current expenditures for the State as a whole; and

2. the Secretary shall then—

1. proportionately allocate such maximum payment amount

among the administrative school districts on the basis of the

respective weighted student units of such districts; and

2. proportionately allocate such total current expenditures

among the administrative school districts on the basis of the

respective number of students in average daily attendance

at such districts.

• LOCAL EDUCATIONAL AGENCIES AFFECTED BY REMOVAL OF FEDERAL PROPERTY.—

1. IN GENERAL.—In computing the amount of a basic support payment under this subsection

for a fiscal year for a local educational agency described in subparagraph (B), the

Secretary shall meet the additional requirements described in subparagraph (C).

2. LOCAL EDUCATIONAL AGENCY DESCRIBED.—A local educational agency described in this

subparagraph is a local educational agency with respect to which Federal property (i)

located within the boundaries of the agency, and (ii) on which one or more children

reside who are receiving a free public education at a school of the agency, is transferred

by the Federal Government to another entity in any fiscal year beginning on or after the

date of the enactment of the Impact Aid Reauthorization Act of 2000 so that the property

is subject to taxation by the State or a political subdivision of the State.

3. ADDITIONAL REQUIREMENTS.—The additional requirements described in this subparagraph

are the following:

1. For each fiscal year beginning after the date on which the Federal property is

transferred, a child described in subparagraph (B) who continues to reside on such

property and who continues to receive a free public education at a school of the

agency shall be deemed to be a child who resides on Federal property for

purposes of computing under the applicable subparagraph of subsection (a)(1) the

amount that the agency is eligible to receive under this subsection.

(ii)(I) For the third fiscal year beginning after the date on which the Federal

property is transferred, and for each fiscal year thereafter, the Secretary shall,

after computing the amount that the agency is otherwise eligible to receive under

this subsection for the

fiscal year involved, deduct from such amount an amount equal to the revenue

received by the agency for the immediately preceding fiscal year as a result of the

taxable status of the former Federal property.

(II) For purposes of determining the amount of revenue to be deducted in

accordance with subclause (I), the local educational agency—

(aa) shall provide for a review and certification of such amount by an appropriate

local tax authority; and

(bb) shall submit to the Secretary a report containing the amount certified under

item (aa).

• PRIOR YEAR DATA.—

1. IN GENERAL.—Except as provided in subsections (b)(1)(D), (b)(2), and paragraph (2), all

calculations under this section shall be based on data for each local educational agency

from not later than the fiscal year preceding the fiscal year for which the agency is

making application for payment.

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—

1. is newly established by a State, for the first year of operation of such agency only;

2. 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 the Interior, or the

heads of other Federal agencies)— (i)(I) of not less than 10 percent of children

described in—

(aa) subparagraph (A), (B), (C), or (D) of subsection (a)(1); or

(bb) subparagraphs (F) and (G) of subsection (a)(1), but only to the extent that

such children are civilian dependents of employees of the Department of Defense

or the Department of the Interior; or

(II) of not less than 100 of such children; and

1. that is the direct result of closure or realignment of military installations

under the base closure process or the relocation of members of the Armed

Forces and civilian employees of the Department of Defense 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

3. was eligible to receive a payment under this section for the previous fiscal year

and has had an increase in enrollment (as determined by the Secretary)—

1. of not less than 10 percent of children described in subsection (a)(1) or not

less than 100 of such children; and

2. that is the direct result of the closure of a local educational agency that

received a payment under subsection (b)(1) or (b)(2) for the previous

fiscal year.

• CHILDREN WITH DISABILITIES.—

1. IN GENERAL.—From the amount appropriated under section 7014(c) for a fiscal year, the

Secretary shall pay to each eligible local educational agency, on a pro rata basis, the

amounts determined by—

1. multiplying the number of children described in subparagraphs (A)(ii), (B) and

(C) of subsection (a)(1) who are eligible to receive services under the Individuals

with Disabilities Education Act (20 U.S.C. 1400 et seq.) by a factor of 1.0; and

2. multiplying the number of children described 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 agency that receives funds under paragraph (1) shall

use such funds to provide a free appropriate public education to children described in

paragraph (1) in accordance with the Individuals with Disabilities Education Act (20

U.S.C. 1400 et seq.).

• HOLD HARMLESS.—

1. IN GENERAL.—In the case of any local educational agency eligible to receive a payment

under subsection (b) whose calculated payment amount for a fiscal year is reduced by 20

percent, as compared to the amount received for the previous fiscal year, the Secretary

shall pay the local educational agency, for the year of the reduction and the following 2

years, the amount determined under paragraph (2).

2. AMOUNT OF REDUCTION.—Subject to paragraph (3), A local educational agency described

in paragraph (1) shall receive—

1. for the first year for which the reduced payment is determined, an amount that is

not less than 90 percent of the total amount that the local educational agency

received under subsection (b) for the previous fiscal year;

2. for the second year following such reduction, an amount that is not less than 85

percent of the total amount that the local educational agency received under

subparagraph (A); and

3. for the third year following such reduction, an amount that is not less than 80

percent of the total amount that the local educational agency received under

subparagraph (B).

3. SPECIAL RULE.—For any fiscal year for which a local educational agency would receive a

payment under subsection (b) in excess of the amount determined under paragraph (2),

the payment received by the local educational agency for such fiscal year shall be

calculated under paragraph (1) or (2) of subsection (b).

4. RATABLE REDUCTIONS.—

1. 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 eligible to receive under paragraph (1) for such year, then the Secretary shall

ratably reduce the payments to all such agencies for such year.

2. ADDITIONAL FUNDS.—If additional funds become available for making payments

under paragraph (1) for such fiscal year, payments that were reduced under

subparagraph (A) shall be increased on the same basis as such payments were

reduced.

(f) OTHER FUNDS.—Notwithstanding any other provision of law, a local educational agency receiving

funds under this section may also receive funds under section 386 of the National Defense

Authorization Act for Fiscal Year 1993 or such section's successor authority.

SEC. 7004. [20 U.S.C. 7704] POLICIES AND PROCEDURES RELATING TO CHILDREN RESIDING

ON INDIAN LANDS.

1. IN GENERAL.—A local educational agency that claims children residing on Indian lands for

the purpose of receiving funds under section 7003 shall establish policies and procedures

to ensure that—

1. such children participate in programs and activities supported by such funds on an

equal basis with all other children;

2. parents of such children and Indian tribes are afforded an opportunity to present

their views on such programs and activities, including an opportunity to make

recommendations on the needs of those children and how the local educational

agency may help such children realize the benefits of such programs and activities;

3. parents and Indian tribes are consulted and involved in planning and developing

such programs and activities;

4. relevant applications, evaluations, and program plans are disseminated to the

parents and Indian tribes; and

5. parents and Indian tribes are afforded an opportunity to present their views to such

agency regarding such agency's general educational program.

2. RECORDS.—A local educational agency that claims children residing on Indian lands for the

purpose of receiving funds under section 7003 shall maintain records demonstrating such

agency's compliance with the requirements contained in subsection (a).

3. WAIVER.—A local educational agency that claims children residing on Indian lands for the

purpose of receiving funds under section 7003 shall not be required to comply with the

requirements of subsections (a) and (b) for any fiscal year with respect to any Indian tribe

from which such agency has received a written statement that the agency need not comply

with those subsections because the tribe is satisfied with the provision of educational

services by such agency to such children.

4. TECHNICAL ASSISTANCE AND ENFORCEMENT.—The Secretary shall—

1. provide technical assistance to local educational agencies, parents, and Indian

tribes to enable such agencies, parents, and tribes to carry out this section; and

2. enforce this section through such actions, which may include the withholding of

funds, as the Secretary determines to be appropriate, after affording the affected

local educational agency, parents, and Indian tribe an opportunity to present their

views.

5. COMPLAINTS.—

1. IN GENERAL.—(A) Any tribe, or its designee, which has students in attendance at a

local educational agency may, in its discretion and without regard to the

requirements of any other provision of law, file a written complaint with the

Secretary regarding any action of a local educational agency taken pursuant to, or

relevant to, the requirements of this section.

1. Within ten working days from receipt of a complaint, the Secretary shall—

1. designate a time and place for a hearing into the matters relating to

the complaint at a location in close proximity to the local educational

agency involved, or if the Secretary determines there is good cause,

at some other location convenient to both the tribe, or its designee,

and the local educational agency;

2. designate a hearing examiner to conduct the hearing; and

3. notify the affected tribe or tribes and the local educational agency

involved of the time, place, and nature of the hearing and send

copies of the complaint to the local educational agency and the

affected tribe or tribes.

2. HEARING.—The hearing shall be held within 30 days of the designation of a hearing

examiner and shall be open to the public. A record of the proceedings shall be

established and maintained.

3. EVIDENCE; RECOMMENDATIONS; COST.—The complaining tribe, or its designee, and

the local educational agency shall be entitled to present evidence on matters

relevant to the complaint and to make recommendations concerning the appropriate

remedial actions. Each party to the hearing shall bear only its own costs in the

proceedings.

4. FINDINGS AND RECOMMENDATIONS.—Within 30 days of the completion of the hearing,

the hearing examiner shall, on the basis of the record, make written findings of fact

and recommendations concerning appropriate remedial action, if any, which should

be taken. The hearing examiner's findings and recommendations, along with the

hearing record, shall be forwarded to the Secretary.

5. WRITTEN DETERMINATION.—Within 30 days of the Secretary's receipt of the findings,

recommendations, and record, the Secretary shall, on the basis of the record, make

a written determination of the appropriate remedial action, if any, to be taken by the

local educational agency, the schedule for completion of the remedial action, and

the reasons for the Secretary's decision.

6. COPIES PROVIDED.—Upon completion of the Secretary's final determination, the

Secretary shall provide the complaining tribe, or its designee, and the local

educational agency with copies of the hearing record, the hearing examiner's

findings and recommendations, and the Secretary's final determination. The final

determination of the Secretary shall be subject to judicial review.

7. CONSOLIDATION.—In all actions under this subsection, the Secretary shall have

discretion to consolidate complaints involving the same tribe or local educational

agency.

8. WITHHOLDING.—If the local educational agency rejects the determination of the

Secretary, or if the remedy required is not undertaken within the time established

and the Secretary determines that an extension of the time established will not

effectively encourage the remedy required, the Secretary shall withhold payment of

all moneys to which such local agency is eligible under section 7003 until such time

as the remedy required is undertaken, except where the complaining tribe or its

designee formally requests that such funds be released to the local educational

agency, except that the Secretary may not withhold such moneys during the course

of the school year if the Secretary determines that such withholding would

substantially disrupt the educational programs of the local educational agency.

9. REJECTION OF DETERMINATION.—If the local educational agency rejects the

determination of the Secretary and a tribe exercises the option under section

1101(d) of the Education Amendments of 1978, to have education services provided

either directly by the Bureau of Indian Education or by contract with the Bureau of

Indian Education, any Indian students affiliated with that tribe who wish to remain in

attendance at the local educational agency against whom the complaint which led

to the tribal action under such subsection (d) was lodged may be counted with

respect to that local educational agency for the purpose of receiving funds under

section 7003. In such event, funds under such section shall not be withheld

pursuant to paragraph (8) and no further complaints with respect to such students

may be filed under paragraph (1).

6. CONSTRUCTION.—This section is based upon the special relationship between the Indian

nations and the United States and nothing in this section shall be construed to relieve any

State of any duty with respect to any citizens of that State.

SEC. 7005. [20 U.S.C. 7705] APPLICATION FOR PAYMENTS UNDER SECTIONS 7002 AND 7003.

1. IN GENERAL.—A local educational agency desiring to receive a payment under section 7002

or 7003 shall—

1. submit an application for such payment to the Secretary; and

2. provide a copy of such application to the State educational agency.

2. CONTENTS.—Each such application shall be submitted in such form and manner as the

Secretary may require, including—

1. information to determine the eligibility of the local educational agency for a payment

and the amount of such payment; and

2. where applicable, an assurance that such agency is in compliance with section 7004

(relating to children residing on Indian lands).

3. DEADLINE FOR SUBMISSION.—The Secretary shall establish deadlines for the submission of

applications under this section.

4. APPROVAL.—

1. IN GENERAL.—The Secretary shall approve an application submitted under this

section that—

1. except as provided in paragraph (2), is filed by the deadline established

under subsection (c); and

2. otherwise meets the requirements of this title.

2. REDUCTION IN PAYMENT.—The Secretary shall approve an application filed not more

than 60 days after a deadline established under subsection (c), or not more than 60

days after the date on which the Secretary sends written notice to the local

educational agency pursuant to paragraph (3)(A), as the case may be, that otherwise

meets the requirements of this title, except that, notwithstanding section 7003(e),

the Secretary shall reduce the payment based on such late application by 10

percent of the amount that would otherwise be paid.

3. LATE APPLICATIONS.—

1. NOTICE.—The Secretary shall, as soon as practicable after the deadline

established under subsection (c), provide to each local educational agency

that applied for a payment under section 7002 or 7003 for the prior fiscal

year, and with respect to which the Secretary has not received an

application for a payment under either such section (as the case may be) for

the fiscal year in question, written notice of the failure to comply with the

deadline and instruction to ensure that the application is filed not later than

60 days after the date on which the Secretary sends the notice.

2. ACCEPTANCE AND APPROVAL OF LATE APPLICATIONS.—The Secretary shall not

accept or approve any application of a local educational agency that is filed

more than 60 days after the date on which the Secretary sends written

notice to the local educational agency pursuant to subparagraph (A).

4. STATE APPLICATION AUTHORITY.—Notwithstanding any other provision of law, a State

educational agency that had been accepted as an applicant for funds under section

3 of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such

section was in effect on the day preceding the date of enactment of the Improving

America's Schools Act of 1994) in fiscal year 1994 shall be permitted to continue as

an applicant under the same conditions by which such agency made application

during such fiscal year only if such State educational agency distributes all funds

received for the students for which application is being made by such State

educational agency to the local educational agencies providing educational services

to such students.

SEC. 7007. [20 U.S.C. 7707] CONSTRUCTION. [ 11 ]

1. CONSTRUCTION PAYMENTS AUTHORIZED.—

1. IN GENERAL.—From 40 percent of the amount appropriated for each fiscal year

under section 7014(d), the Secretary shall make payments in accordance with this

subsection to each local educational agency that receives a basic support payment

under section 7003(b) for that fiscal year.

2. ADDITIONAL REQUIREMENTS.—A local educational agency that receives a basic

support payment under section 7003(b)(1) shall also meet at least one of the

following requirements:

1. The number of children determined under section 7003(a)(1)(C) for the

agency for the preceding school year constituted at least 50 percent of the

total student enrollment in the schools of the agency during the preceding

school year.

2. The number of children determined under subparagraphs (B) and (D)(i) of

section 7003(a)(1) for the agency for the preceding school year constituted

at least 50 percent of the total student enrollment in the schools of the

agency during the preceding school year.

3. AMOUNT OF PAYMENTS.—

1. LOCAL EDUCATIONAL AGENCIES IMPACTED BY MILITARY DEPENDENT

CHILDREN.—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—

(i)(I) 20 percent of the amount appropriated under section 7014(d) for such

fiscal year; divided by

(II) the total number of weighted student units of children described in

subparagraphs (B) and (D)(i) of section 7003(a)(1) for all local educational

agencies described in this subsection (as calculated under section

7003(a)(2)), including the number of weighted student units of such children

attending a school facility described in section 7008(a) if the Secretary does

not provide assistance for the school facility under that section for the prior

fiscal year; multiplied by

(ii) the total number of such weighted student units for the agency.

2. LOCAL EDUCATIONAL AGENCIES IMPACTED BY CHILDREN WHO RESIDE ON INDIAN

LANDS.—The amount of a payment to each local educational agency

described in this subsection that is impacted by children who reside on

Indian lands for a fiscal year shall be equal to—

(i)(I) 20 percent of the amount appropriated under section 7014(d) for such

fiscal year; divided by

(II) the total number of weighted student units of children described in

section 7003(a)(1)(C) for all local educational agencies described in this

subsection (as calculated under section 7003(a)(2)); multiplied by

(ii) the total number of such weighted student units for the agency.

4. USE OF FUNDS.—Any local educational agency that receives funds under this

subsection shall use such funds for construction, as defined in section 7013(3).

2. SCHOOL FACILITY EMERGENCY AND MODERNIZATION GRANTS AUTHORIZED.—

1. IN GENERAL.—From 60 percent of the amount appropriated for each fiscal year

under section 7014(d), the Secretary—

1. shall award emergency grants in accordance with this subsection to eligible

local educational agencies to enable the agencies to carry out emergency

repairs of school facilities; and

2. shall award modernization grants in accordance with this subsection to

eligible local educational agencies to enable the agencies to carry out the

modernization of school facilities.

2. PRIORITY.—In approving applications from local educational agencies for emergency

grants and modernization grants under this subsection, the Secretary shall give

priority to applications in accordance with the following:

1. The Secretary shall first give priority to applications for emergency grants

from local educational agencies that meet the requirements of paragraph

(3)(A) and, among such applications for emergency grants, shall give priority

to those applications of local educational agencies based on the severity of

the emergency, as determined by the Secretary.

2. The Secretary shall next give priority to applications for emergency grants

from local educational agencies that meet the requirements of subparagraph

(C) or (D) of paragraph (3) and, among such applications for emergency

grants, shall give priority to those applications of local educational agencies

based on the severity of the emergency, as determined by the Secretary.

3. The Secretary shall next give priority to applications for modernization grants

from local educational agencies that meet the requirements of paragraph

(3)(B) and, among such applications for modernization grants, shall give

priority to those applications of local educational agencies based on the

severity of the need for modernization, as determined by the Secretary.

4. The Secretary shall next give priority to applications for modernization grants

from local educational agencies that meet the requirements of subparagraph

(C) or (D) of paragraph (3) and, among such applications for modernization

grants, shall give priority to those applications of local educational agencies

based on the severity of the need for modernization, as determined by the

Secretary.

3. ELIGIBILITY REQUIREMENTS.—

1. EMERGENCY GRANTS.—A local educational agency is eligible to receive an

emergency grant under paragraph (2)(A) if—

1. the agency (or in the case of a local educational agency that does

not have the authority to tax or issue bonds, the agency's fiscal

agent)—

1. has no practical capacity to issue bonds;

2. has minimal capacity to issue bonds and is at not less than

75 percent of the agency's limit of bonded indebtedness; or

3. does not meet the requirements of subclauses (I) and (II) but

is eligible to receive funds under section 7003(b)(2) for the

fiscal year; and

2. the agency is eligible to receive assistance under subsection (a) for

the fiscal year and has a school facility emergency, as determined by

the Secretary, that poses a health or safety hazard to the students

and school personnel assigned to the school facility.

2. MODERNIZATION GRANTS.—A local educational agency is eligible to receive a

modernization grant under paragraph (2)(C) if—

1. the agency is eligible to receive assistance under this title for the

fiscal year;

2. the agency (or in the case of a local educational agency that does

not have the authority to tax or issue bonds, the agency's fiscal

agent) meets the requirements of subclause (I), (II), or (III) of

subparagraph (A)(i); and

3. the agency has facility needs resulting from the presence of the

Federal Government, such as the enrollment of federally connected

children, the presence of tax-exempt Federal property, or an

increase in enrollment due to the expansion of Federal activities,

housing privatization, or the acquisition of Federal property.

3. ADDITIONAL ELIGIBILITY FOR EMERGENCY AND MODERNIZATION GRANTS.—(i) A

local educational agency is eligible to receive an emergency grant or a

modernization grant under subparagraph (B) or (D) of paragraph (2),

respectively, if the agency meets the following requirements:

1. The agency receives a basic support payment under section 7003(b)

for the fiscal year and the agency meets at least one of the following

requirements:

(aa) The number of children determined under section 7003(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.

(bb) The number of children determined under subparagraphs (B)

and (D)(i) of section 7003(a)(1) 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.

(cc) Not less than 10 percent of the property acreage in the agency is

exempt from State and local taxation under Federal law.

2. The agency (or in the case of a local educational agency that does

not have the authority to tax or issue bonds, the agency's fiscal

agent) is at not less than 75 percent of the agency's limit of bonded

indebtedness.

3. The agency has an assessed value of real property per student that

may be taxed for school purposes that is less than the average of

the assessed value of real property per student that may be taxed

for school purposes in the State in which the local educational

agency is located.

(ii) A local educational agency is also eligible to receive a modernization

grant under this subparagraph if the agency is eligible to receive assistance

under section 7002 for the fiscal year and meets the requirements of

subclauses (II) and (III) of clause (i).

4. SPECIAL RULE.—

1. IN GENERAL.—Any school described in clause (ii)

2. that desires to receive an emergency grant or a modernization grant

under subparagraph (B) or (D) of paragraph (2), respectively, shall,

except as provided in the following sentence, submit an application

in accordance with paragraph (6), and shall otherwise be treated as a

local educational agency for the purpose of this subsection. The

school shall submit an application for the grant to the local

educational agency of such school and the agency shall submit the

application on behalf of the school to the Secretary.

1. SCHOOL DESCRIBED.—A school described in this clause is a

school that meets the following requirements:

1. The school is located within the geographic

boundaries of a local educational agency that does

not meet the applicable eligibility requirements under

subparagraph (A), (B), or (C) for a grant under this

subsection.

2. The school meets at least one of the following

requirements:

(aa) The number of children determined under section

7003(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.

(bb) The number of children determined under

subparagraphs (B) and (D)(i) of section 7003(a)(1) 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.

3. The school is located within the geographic

boundaries of a local educational agency that meets

the requirements of subclauses (II) and (III) of

subparagraph (C)(i).

5. RULE OF CONSTRUCTION.—For purposes of subparagraph (A)(i), a local

educational agency—

1. has no practical capacity to issue bonds if the total assessed value

of real property that may be taxed for school purposes is less than

$25,000,000; and

2. has minimal capacity to issue bonds if the total assessed value of

real property that may be taxed for school purposes is at least

$25,000,000 but not more than $50,000,000.

4. AWARD CRITERIA.—In awarding emergency grants and modernization grants under

this subsection, the Secretary shall consider the following factors:

1. The ability of the local educational agency to respond to the emergency, or

to pay for the modernization project, as the case may be, as measured by—

1. the agency's level of bonded indebtedness;

2. the assessed value of real property per student that may be taxed

for school purposes compared to the average of the assessed value

of real property per student that may be taxed for school purposes in

the State in which the agency is located;

3. the agency's total tax rate for school purposes (or, if applicable, for

capital expenditures) compared to the average total tax rate for

school purposes (or the average capital expenditure tax rate, if

applicable) in the State in which the agency is located; and

4. funds that are available to the agency, from any other source,

including subsection (a), that may be used for capital expenditures.

2. The percentage of property in the agency that is nontaxable due to the

presence of the Federal Government.

3. The number and percentages of children described in subparagraphs (A),

(B), (C), and (D) of section 7003(a)(1) served in the school facility with the

emergency or served in the school facility proposed for modernization, as

the case may be.

4. In the case of an emergency grant, the severity of the emergency, as

measured by the threat that the condition of the school facility poses to the

health, safety, and well-being of students.

5. In the case of a modernization grant—

1. the severity of the need for modernization, as measured by such

factors as—

1. overcrowding, as evidenced by the use of portable

classrooms, or the potential for future overcrowding because

of increased enrollment; or

2. the agency's inability to utilize technology or offer a

curriculum in accordance with contemporary State standards

due to the physical limitations of the current school facility;

and

2. the age of the school facility proposed for modernization.

5. OTHER AWARD PROVISIONS.—

1. GENERAL PROVISIONS.—

1. LIMITATIONS ON AMOUNT OF FUNDS.—

1. IN GENERAL.—The amount of funds provided under an

emergency grant or a modernization grant awarded under

this subsection to a local educational agency that meets the

requirements of subclause (II) or (III) of paragraph (3)(A)(i) for

purposes of eligibility under subparagraph (A) or (B) of

paragraph (3) or that meets the requirements of clause (i) or

(ii) of paragraph (3)(C) for purposes of eligibility under such

paragraph (3)(C), or to a school that is eligible under

paragraph (3)(D)—

(aa) shall not exceed 50 percent of the total cost of the

project to be assisted under this subsection; and

(bb) shall not exceed $4,000,000 during any 4-year period.

2. IN-KIND CONTRIBUTIONS.—A local educational agency may

use in-kind contributions to meet the matching requirement

of subclause (I)(aa).

2. PROHIBITIONS ON USE OF FUNDS.—A local educational agency may

not use funds provided under an emergency grant or modernization

grant awarded under this subsection for—

1. a project for a school facility for which the agency does not

have full title or other interest;

2. stadiums or other school facilities that are primarily used for

athletic contests, exhibitions, or other events for which

admission is charged to the general public; or

3. the acquisition of real property.

3. SUPPLEMENT, NOT SUPPLANT.—A local educational agency shall use

funds provided under an emergency grant or modernization grant

awarded under this subsection only to supplement the amount of

funds that would, in the absence of the Federal funds provided

under the grant, be made available from non-Federal sources to

carry out emergency repairs of school facilities or to carry out the

modernization of school facilities, as the case may be, and not to

supplant such funds.

4. MAINTENANCE COSTS.—Nothing in this subsection shall be construed

to authorize the payment of maintenance costs in connection with

any school facility modernized in whole or in part with Federal funds

provided under this subsection.

5. ENVIRONMENTAL SAFEGUARDS.—All projects carried out with Federal

funds provided under this subsection shall comply with all relevant

Federal, State, and local environmental laws and regulations.

6. CARRY-OVER OF CERTAIN APPLICATIONS.—A local educational agency

that applies for an emergency grant or a modernization grant under

this subsection for a fiscal year and does not receive the grant for

the fiscal year shall have the application for the grant considered for

the following fiscal year, subject to the priority requirements of

paragraph (2) and the award criteria requirements of paragraph (4).

2. EMERGENCY GRANTS; PROHIBITION ON USE OF FUNDS.—A local educational

agency that is awarded an emergency grant under this subsection may not

use amounts under the grant for the complete or partial replacement of an

existing school facility unless such replacement is less expensive or more

cost-effective than correcting the identified emergency.

6. APPLICATION.—A local educational agency that desires to receive an emergency

grant or a modernization grant under this subsection shall submit an application to

the Secretary at such time and in such manner as the Secretary may require. Each

application shall contain the following:

1. A description of how the local educational agency meets the award criteria

under paragraph (4), including the information described in clauses (i)

through (iv) of paragraph (4)(A) and subparagraphs (B) and (C) of paragraph

(4), and containing such additional information as may be necessary to meet

any award criteria for a grant under this subsection as provided by any other

Act.

2. In the case of an application for an emergency grant—

1. a description of the school facility deficiency that poses a health or

safety hazard to the occupants of the facility and a description of

how the deficiency will be repaired; and

2. a signed statement from an appropriate local official certifying that a

deficiency in the school facility threatens the health or safety of the

occupants of the facility or that prevents the use of all or a portion of

the building.

3. In the case of an application for a modernization grant—

1. an explanation of the need for the school facility modernization

project;

2. the date on which original construction of the facility to be

modernized was completed;

3. a listing of the school facilities to be modernized, including the

number and percentage of children determined under section

7003(a)(1) in average daily attendance in each school facility; and

4. a description of the ownership of the property on which the current

school facility is located or on which the planned school facility will

be located.

4. A description of the project for which a grant under this subsection will be

used, including a cost estimate for the project.

5. A description of the interest in, or authority over, the school facility involved,

such as an ownership interest or a lease arrangement.

SEC. 7008. [20 U.S.C. 7708] FACILITIES.

1. CURRENT FACILITIES.—From the amount appropriated for any fiscal year under section

7014(e), the Secretary may continue to provide assistance for school facilities that were

supported by the Secretary under section 10 of the Act of September 23, 1950 (Public Law

815, 81st Congress) (as such Act was in effect on the day preceding the date of the

enactment of the Improving America's Schools Act of 1994).

2. TRANSFER OF FACILITIES.—

1. IN GENERAL.—The Secretary shall, as soon as practicable, transfer to the

appropriate local educational agency or another appropriate entity all the right, title,

and interest of the United States in and to each facility provided under section 10 of

the Act of September 23, 1950 (Public Law 815, 81st Congress), or under section

204 or 310 of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as

such Acts were in effect on January 1, 1958).

2. OTHER REQUIREMENTS.—Any such transfer shall be without charge to such agency

or entity, and prior to such transfer, the transfer shall be consented to by the local

educational agency or other appropriate entity, and may be made on such terms

and conditions as the Secretary deems appropriate to carry out the purposes of this

title.

SEC. 7009. [20 U.S.C. 7709] STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE

AID.

1. GENERAL PROHIBITION.—Except as provided in subsection (b), a State may not—

1. consider payments under this title in determining for any fiscal year—

1. the eligibility of a local educational agency for State aid for free public

education; or

2. the amount of such aid; or

2. make such aid available to local educational agencies in a manner that results in

less State aid to any local educational agency that is eligible for such payment than

such agency would receive if such agency were not so eligible.

2. STATE EQUALIZATION PLANS.—

1. IN GENERAL.—A State may reduce State aid to a local educational agency that

receives a payment under section 7002 or 7003(b) (except the amount calculated in

excess of 1.0 under section 7003(a)(2)(B) and, with respect to a local educational

agency that receives a payment under section 7003(b)(2), the amount in excess of

the amount that the agency would receive if the agency were deemed to be an

agency eligible to receive a payment under section 7003(b)(1) and not section

7003(b)(2)) for any fiscal year if the Secretary determines, and certifies under

subsection (c)(3)(A), that the State has in effect a program of State aid that equalizes

expenditures for free public education among local educational agencies in the

State.

2. COMPUTATION.—

1. IN GENERAL.—For purposes of paragraph (1), a program of State aid

equalizes expenditures among local educational agencies if, in the second

fiscal year preceding the fiscal year for which the determination is made, the

amount of per-pupil expenditures made by, or per-pupil revenues available

to, the local educational agency in the State with the highest such per-pupil

expenditures or revenues did not exceed the amount of such per-pupil

expenditures made by, or per-pupil revenues available to, the local

educational agency in the State with the lowest such expenditures or

revenues by more than 25 percent.

2. OTHER FACTORS.—In making a determination under this subsection, the

Secretary shall—

1. disregard local educational agencies with per-pupil expenditures or

revenues above the 95th percentile or below the 5th percentile of

such expenditures or revenues in the State; and

2. take into account the extent to which a program of State aid reflects

the additional cost of providing free public education in particular

types of local educational agencies, such as those that are

geographically isolated, or to particular types of students, such as

children with disabilities.

3. EXCEPTION.—Notwithstanding paragraph (2), if the Secretary determines that the

State has substantially revised its program of State aid, the Secretary may certify

such program for any fiscal year only if—

1. the Secretary determines, on the basis of projected data, that the State's

program will meet the disparity standard described in paragraph (2) for the

fiscal year for which the determination is made; and

2. the State provides an assurance to the Secretary that, if final data do not

demonstrate that the State's program met such standard for the fiscal year

for which the determination is made, the State will pay to each affected local

educational agency the amount by which the State reduced State aid to the

local educational agency.

3. PROCEDURES FOR REVIEW OF STATE EQUALIZATION PLANS.—

1. WRITTEN NOTICE.—

1. IN GENERAL.—Any State that wishes to consider payments described in

subsection (b)(1) in providing State aid to local educational agencies shall

submit to the Secretary, not later than 120 days before the beginning of the

State's fiscal year, a written notice of such State's intention to do so.

2. CONTENTS.—Such notice shall be in the form that the Secretary requires,

including evidence that the State has notified each local educational agency

in the State of such State's intention to consider such payments in providing

State aid.

2. OPPORTUNITY TO PRESENT VIEWS.—Before making a determination under subsection

(b), the Secretary shall afford the State, and local educational agencies in the State,

an opportunity to present their views.

3. QUALIFICATION PROCEDURES.—If the Secretary determines that a program of State

aid qualifies under subsection (b), the Secretary shall—

1. certify the program and so notify the State; and

2. afford an opportunity for a hearing, in accordance with section 7011(a), to

any local educational agency adversely affected by such certification.

4. NON-QUALIFICATION PROCEDURES.—If the Secretary determines that a program of

State aid does not qualify under subsection (b), the Secretary shall—

1. so notify the State; and

2. afford an opportunity for a hearing, in accordance with section 7011(a), to

the State, and to any local educational agency adversely affected by such

determination.

4. TREATMENT OF STATE AID.—

1. IN GENERAL.—If a State has in effect a program of State aid for free public education

for any fiscal year, which is designed to equalize expenditures for free public

education among the local educational agencies of that State, payments under this

title for any fiscal year may be taken into consideration by such State in determining

the relative—

1. financial resources available to local educational agencies in that State; and

2. financial need of such agencies for the provision of free public education for

children served by such agency, except that a State may consider as local

resources funds received under this title only in proportion to the share that

local tax revenues covered under a State equalization program are of total

local tax revenues.

2. PROHIBITION.—A State may not take into consideration payments under this title

before such State's program of State aid has been certified by the Secretary under

subsection (c)(3).

5. REMEDIES FOR STATE VIOLATIONS.—

1. IN GENERAL.—The Secretary or any aggrieved local educational agency may, not

earlier than 150 days after an adverse determination by the Secretary against a

State for violation of subsections (a) or (d)(2) or for failure to carry out an assurance

under subsection (b)(3)(B), and if an administrative proceeding has not been

concluded within such time, bring an action in a United States district court against

such State for such violations or failure.

2. IMMUNITY.—A State shall not be immune under the 11th amendment to the

Constitution of the United States from an action described in paragraph (1).

3. RELIEF.—The court shall grant such relief as the court determines is appropriate.

SEC. 7010. [20 U.S.C. 7710] FEDERAL ADMINISTRATION.

1. PAYMENTS IN WHOLE DOLLAR AMOUNTS.—The Secretary shall round any payments under

this title to the nearest whole dollar amount.

2. OTHER AGENCIES.—Each Federal agency administering Federal property on which children

reside, and each agency principally responsible for an activity that may occasion assistance

under this title, shall, to the maximum extent practicable, comply with requests of the

Secretary for information the Secretary may require to carry out this title.

3. SPECIAL RULES.—

1. CERTAIN CHILDREN ELIGIBLE UNDER SUBPARAGRAPHS (A) AND (G)(ii) OF SECTION

7003(a)(1).—(A) The Secretary shall treat as eligible under subparagraph (A) of section

7003(a)(1) any child who would be eligible under such subparagraph except that the

Federal property on which the child resides or on which the child's parent is

employed is not in the same State in which the child attends school, if such child

meets the requirements of paragraph (2).

(B) The Secretary shall treat as eligible under subparagraph (G) of section 7003(a)(1)

any child who would be eligible under such subparagraph except that such child

does not meet the requirements of clause (ii) of such subparagraph, if such child

meets the requirements of paragraph (2).

2. REQUIREMENTS.—A child meets the requirements of this paragraph if—

1. such child resides—

1. in a State adjacent to the State in which the local educational agency

serving the school such child attends is located; or

2. with a parent employed on Federal property in a State adjacent to

the State in which such agency is located;

2. the schools of such agency are within a more reasonable commuting

distance of such child's home than the schools of the local educational

agency that serves the school attendance area where such child resides;

3. attending the schools of the local educational agency that serves the school

attendance area where such child resides will impose a substantial hardship

on such child;

4. the State in which such child attends school provides funds for the

education of such child on the same basis as all other public school children

in the State, unless otherwise permitted under section 7009(b) of this title;

and

5. such agency received a payment for fiscal year 1999 under section 7003(b)

on behalf of children described in paragraph (1).

4. TIMELY PAYMENTS.—

1. IN GENERAL.—Subject to paragraph (2), the Secretary shall pay a local educational

agency the full amount that the agency is eligible to receive under this title for a

fiscal year 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 receive under

this title for such fiscal year.

2. PAYMENTS WITH RESPECT OF FISCAL YEARS IN WHICH INSUFFICIENT FUNDS ARE

APPROPRIATED.—For a fiscal year in which the amount appropriated under section

7014 is insufficient to pay the full amount a local educational agency is eligible to

receive under this title, paragraph (1) shall be applied by substituting ''is available to

pay the agency'' for ''the agency is eligible to receive'' each place the term appears.

SEC. 7011. [20 U.S.C. 7711] ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

1. ADMINISTRATIVE HEARINGS.—A local educational agency and a State that is adversely

affected by any action of the Secretary under this title shall be entitled to a hearing on such

action in the same manner as if such agency were a person under chapter 5 of title 5,

United States Code if the local educational agency or State, as the case may be, submits to

the Secretary a request for the hearing not later than 60 days after the date of the action of

the Secretary under this title.

2. JUDICIAL REVIEW OF SECRETARIAL ACTION.—

1. IN GENERAL.—A local educational agency or a State aggrieved by the Secretary's

final decision following an agency proceeding under subsection (a) may, within 30

working days (as determined by the local educational agency or State) after

receiving notice of such decision, file with the United States court of appeals for the

circuit in which such agency or State is located a petition for review of that action.

The clerk of the court shall promptly transmit a copy of the petition to the Secretary.

The Secretary shall then file in the court the record of the proceedings on which the

Secretary's action was based, as provided in section 2112 of title 28, United States

Code.

2. FINDINGS OF FACT.—The findings of fact by the Secretary, if supported by

substantial evidence, shall be conclusive, but the court, for good cause shown, may

remand the case to the Secretary to take further evidence. The Secretary may

thereupon make new or modified findings of fact and may modify the Secretary's

previous action, and shall file in the court the record of the further proceedings.

Such new or modified findings of fact shall likewise be conclusive if supported by

substantial evidence.

3. REVIEW.—The court shall have exclusive jurisdiction to affirm the action of the

Secretary or to set it aside, in whole or in part. The judgment of the court shall be

subject to review by the Supreme Court of the United States upon certiorari or

certification as provided in section 1254 of title 28, United States Code.

SEC. 7012. [20 U.S.C. 7712] FORGIVENESS OF OVERPAYMENTS.

Notwithstanding any other provision of law, the Secretary may forgive the obligation of a local

educational agency to repay, in whole or in part, the amount of any overpayment received under

this title, or under this title's predecessor authorities, if the Secretary determines that the

overpayment was made as a result of an error made by—

1. the Secretary; or

2. the local educational agency and repayment of the full amount of the overpayment

will result in an undue financial hardship on the agency and seriously harm the

agency's educational program.

SEC. 7013. [20 U.S.C. 7713] DEFINITIONS.

For purposes of this title:

1. ARMED FORCES.—The term ''Armed Forces'' means the Army, Navy, Air Force,

Marine Corps, and Coast Guard.

2. AVERAGE PER-PUPIL EXPENDITURE.—The term ''average per-pupil expenditure''

means—

1. the aggregate current expenditures of all local educational agencies in the

State; divided by

2. the total number of children in average daily attendance for whom such

agencies provided free public education.

3. CONSTRUCTION.—The term ''construction'' means—

1. the preparation of drawings and specifications for school facilities;

2. erecting, building, acquiring, altering, remodeling, repairing, or extending

school facilities;

3. inspecting and supervising the construction of school facilities; and

4. debt service for such activities.

4. CURRENT EXPENDITURES.—The term ''current expenditures'' means expenditures for

free public education, including expenditures for administration, instruction,

attendance and health services, pupil transportation services, operation and

maintenance of plant, fixed charges, and net expenditures to cover deficits for food

services and student body activities, but does not include expenditures for

community services, capital outlay, and debt service, or any expenditures made

from funds awarded under part A of title I. The determination of whether an

expenditure for the replacement of equipment is considered a current expenditure

or a capital outlay shall be determined in accordance with generally accepted

accounting principles as determined by the State.

5. FEDERAL PROPERTY.—

1. IN GENERAL.—Except as provided in subparagraphs (B) through (F), the term

''Federal property'' means real property that is not subject to taxation by any

State or any political subdivision of a State due to Federal agreement, law,

or policy, and that is—

1. owned by the United States or leased by the United States from

another entity;

(ii)(I) held in trust by the United States for individual Indians or Indian

tribes;

1. held by individual Indians or Indian tribes subject to

restrictions on alienation imposed by the United States;

2. conveyed at any time under the Alaska Native Claims

Settlement Act to a Native individual, Native group, or village

or regional corporation (including single family occupancy

properties that may have been subsequently sold or leased

to a third party), except that property that is conveyed under

such Act—

(aa) that is not taxed is, for the purposes of this paragraph,

considered tax-exempt due to Federal law; and

(bb) is considered Federal property for the purpose of this

paragraph if the property is located within a Regional

Educational Attendance Area that has no taxing power;

3. public land owned by the United States that is designated for

the sole use and benefit of individual Indians or Indian tribes;

or

4. used for low-rent housing, as described in paragraph (10),

that is located on land described in subclause (I), (II), (III), or

(IV) of this clause or on land that met one of those

descriptions immediately before such property's use for such

housing;

(iii)(I) part of a low-rent housing project assisted under the United

States Housing Act of 1937;

5. used to provide housing for homeless children at closed

military installations pursuant to section 501 of the

McKinney-Vento Homeless Assistance Act (42

U.S.C. 11411); or

6. used for affordable housing assisted under the Native

American Housing Assistance and Self-Determination Act of

1996 (25 U.S.C. 4101 et seq.); or

(iv) owned by a foreign government or by an international

organization.

2. SCHOOLS PROVIDING FLIGHT TRAINING TO MEMBERS OF AIR FORCE.—The term

''Federal property'' includes, so long as not subject to taxation by any State

or any political subdivision of a State, and whether or not that tax exemption

is due to Federal agreement, law, or policy, any school providing flight

training to members of the Air Force under contract with the Air Force at an

airport owned by a State or political subdivision of a State.

3. NON-FEDERAL EASEMENTS, LEASES, LICENSES, PERMITS, IMPROVEMENTS, AND

CERTAIN OTHER REAL PROPERTY.—The term ''Federal property'' includes,

whether or not subject to taxation by a State or a political subdivision of a

State—

1. any non-Federal easement, lease, license, permit, or other such

interest in Federal property as otherwise described in this paragraph,

but not including any non-Federal fee-simple interest;

2. any improvement on Federal property as otherwise described in this

paragraph; and

3. real property that, immediately before its sale or transfer to a non-

Federal party, was owned by the

United States and otherwise qualified as Federal property described

in this paragraph, but only for one year beyond the end of the fiscal

year of such sale or transfer.

4. CERTAIN POSTAL SERVICE PROPERTY AND PIPELINES AND UTILITY LINES.—

Notwithstanding any other provision of this paragraph, the term ''Federal

property'' does not include—

1. any real property under the jurisdiction of the United States Postal

Service that is used primarily for the provision of postal services; or

2. pipelines and utility lines.

5. PROPERTY WITH RESPECT TO WHICH STATE OR LOCAL TAX REVENUES MAY NOT

BE EXPENDED, ALLOCATED, OR AVAILABLE FOR FREE PUBLIC EDUCATION.—

Notwithstanding any other provision of this paragraph, ''Federal property''

does not include any property on which children reside that is otherwise

described in this paragraph if—

1. no tax revenues of the State or of any political subdivision of the

State may be expended for the free public education of children who

reside on that Federal property; or

2. no tax revenues of the State are allocated or available for the free

public education of such children.

6. PROPERTY LOCATED IN THE STATE OF OKLAHOMA OWNED BY INDIAN HOUSING

AUTHORITY FOR LOW-INCOME HOUSING.—The term ''Federal property''

includes any real property located in the State of Oklahoma that—

1. is owned by an Indian housing authority and used for low-income

housing (including housing assisted under or authorized by the

Native American Housing Assistance and Self-Determination Act of

1996); and

2. at any time—

1. was designated by treaty as tribal land; or

2. satisfied the definition of Federal property under section

403(1)(A) of the Act of September 30, 1950 (Public Law 874,

81st Congress) (as such Act was in effect on the day

preceding the date of enactment of the Improving America's

Schools Act of 1994).

6. FREE PUBLIC EDUCATION.—The term ''free public education'' means education that is

provided—

1. at public expense, under public supervision and direction, and without

tuition charge; and

2. as elementary or secondary education, as determined under State law,

except that, notwithstanding State law, such term—

1. includes preschool education; and

2. does not include any education provided beyond grade 12.

7. INDIAN LANDS.—The term ''Indian lands'' means any Federal property described in

paragraph (5)(A)(ii) or (5)(F).

8. LOCAL CONTRIBUTION PERCENTAGE.—

1. IN GENERAL.—The term ''local contribution percentage'' means the

percentage of current expenditures in the State derived from local and

intermediate sources, as reported to and verified by the National Center for

Education Statistics.

2. HAWAII AND DISTRICT OF COLUMBIA.—Notwithstanding subparagraph (A), the

local contribution percentage for Hawaii and for the District of Columbia

shall be the average local contribution percentage for the 50 States and the

District of Columbia.

9. LOCAL EDUCATIONAL AGENCY.—

1. IN GENERAL.—Except as provided in subparagraph (B), the term ''local

educational agency''—

1. means a board of education or other legally constituted local school

authority having administrative control and direction of free public

education in a county, township, independent school district, or

other school district; and

2. includes any State agency that directly operates and maintains

facilities for providing free public education.

2. EXCEPTION.—The term ''local educational agency'' does not include any

agency or school authority that the Secretary determines on a case-by-case

basis—

1. was constituted or reconstituted primarily for the purpose of

receiving assistance under this title or the Act of September 30, 1950

(Public Law 874, 81st Congress) (as such Act was in effect on the

day preceding the date of enactment of the Improving America's

Schools Act of 1994) or increasing the amount of such assistance; or

2. is not constituted or reconstituted for legitimate educational

purposes.

10. LOW-RENT HOUSING.—The term ''low-rent housing'' means housing located on

property that is described in paragraph (5)(A)(iii).

11. MODERNIZATION.—The term ''modernization'' means repair, renovation, alteration, or

construction, including—

1. the concurrent installation of equipment; and

2. the complete or partial replacement of an existing school facility, but only if

such replacement is less expensive and more cost-effective than repair,

renovation, or alteration of the school facility.

12. REVENUE DERIVED FROM LOCAL SOURCES.—The term ''revenue derived from local

sources'' means—

1. revenue produced within the boundaries of a local educational agency and

available to such agency for such agency's use; or

2. funds collected by another governmental unit, but distributed back to a local

educational agency in the same proportion as such funds were collected as

a local revenue source.

13. SCHOOL FACILITIES.—The term ''school facilities'' includes—

1. classrooms and related facilities; and

2. equipment, machinery, and utilities necessary or appropriate for school

purposes.

SEC. 7014. [20 U.S.C. 7714] AUTHORIZATION OF APPROPRIATIONS.

1. PAYMENTS FOR FEDERAL ACQUISITION OF REAL PROPERTY.— For the purpose of making

payments under section 7002, there are authorized to be appropriated $66,813,000 for each

of fiscal years 2017 through 2019, and $71,997,917 for fiscal year 2020.

2. BASIC PAYMENTS; PAYMENTS FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES.—For

the purpose of making payments under section 7003(b), there are authorized to be

appropriated $1,151,233,000 for each of fiscal years 2017 through 2019, and

$1,240,572,618 for fiscal year 2020.

3. PAYMENTS FOR CHILDREN WITH DISABILITIES.—For the purpose of making payments under

section 7003(d), there are authorized to be appropriated $48,316,000 for each of fiscal

years 2017 through 2019, and $52,065,487 for fiscal year 2020.

4. CONSTRUCTION.—For the purpose of carrying out section 7007, there are authorized to be

appropriated $17,406,000 for each of fiscal years 2017 through 2019, and $18,756,765 for

fiscal year 2020.

5. FACILITIES MAINTENANCE.—For the purpose of carrying out section 7008, there are

authorized to be appropriated $4,835,000 for each of fiscal years 2017 through 2019, and

$5,210,213 for fiscal year 2020.

Footnotes

[8] Subparagraph (A) applies with respect to fiscal year 2016 pursuant to section 579(a)(1) of

division A of Public Law 114–328.

[9] For special rules with to respect to fiscal year 2016 or any succeeding fiscal year, see section

579(d)(3) of division A of Public Law 114–328.

[10] For special rule regarding per-pupil expenditure requirement for fiscal year 2017, 2018, or

2019, see section 579(c)(2) of division A of Public Law 114–328.

[11] Section 1810 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001

(H.R. 5408 as introduced in the 106th Congress and enacted by section 1 of Public Law 106–398;

114 Stat. 1654A–383) repealed section 8006 of the Elementary and Secondary Education Act of

1965. Title VIII of the Elementary and Secondary Education Act of 1965 was redesignated as title VII

by Public Law 114-95 and remaining sections of title VII (as redesignated) were renumbered

accordingly. So, the effect is that there is no section 7006 in current law.

Military Impacted Schools Association** Bellevue, Nebraska
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