What is Impact Aid?

Impact Aid is a Federal education program that reimburses school districts for the lost revenue and additional costs associated with the presence of nontaxable Federal property, such as military installations; Indian Trust or Treaty lands; Federal low-rent housing facilities; and national laboratories, national parks and other Federal buildings or lands. There are more than 1,200 federally impacted school districts (those districts that receive Impact Aid) located across all 50 states. Together, they educate more than 10 million public school students.  Since 1950, Congress has provided financial assistance to these local school districts through the Impact Aid Program.

Who gets Impact Aid ?

The program continues to support local school districts with concentrations of children who reside on Indian lands, military bases, low-rent housing properties, and other Federal properties, or have parents in the uniformed services or employed on eligible Federal properties. The law refers to local school districts as local educational agencies, or LEAs.

How do school districts use Impact Aid?

Most Impact Aid funds, except for the additional payments for children with disabilities and construction payments, are considered general aid to the recipient school districts; these districts may use the funds in whatever manner they choose in accordance with their local and State requirements.  School districts use Impact Aid for a wide variety of expenses, including the salaries of teachers and teacher aides; purchasing textbooks, computers, and other equipment; after-school programs and remedial tutoring; advanced placement classes; and special enrichment programs.  This flexibility and local control allows school district leaders to target funds supporting all students wherever the needs are greatest.

Who is FLISA?

FLISA is the Federal Lands Impacted Schools Association.  FLISA Schools have Federal Property within their boundaries that has been removed from the tax roles since 1938.  MISA is the Military Impacted Schools Association that are associated with Military Installations.  Their mission is to serve school districts with a high concentration of military children.  NIISA is the Native Indian Impacted Schools Association that serves children living on Indian  reservations and other Indian lands that districts frequently  have a very small local property tax base from which to raise revenue  for schools.  The umbrella organization for all of these groups is NAFIS, the National Association of Federally Impacted Schools.

Payments for Federal Property (Section 7002)

Payments for Federal Property assist local school districts that have lost a portion of their local tax base because of Federal ownership of property. To be eligible, a school district must demonstrate that the Federal Government has acquired, since 1938, real property with an assessed valuation of at least 10 percent of all real property in the district at the time of acquisition.

How many school Districts receive 7002 Federal Property Impact Aid?

During any given year, there are about 240 school districts that qualify for, apply for and receive Impact Aid to help replace the lost property tax revenue because of the Federal Property presence within it’s borders.

How is the almost 1.3 billion dollars of Impact Aid distributed each year?

Over 93 percent of the $1.3 billion appropriated for FY 2016 is targeted for payment to school districts based on an annual count of federally connected school children on Military Bases or Native American Lands. Slightly more than 5 percent assists school districts that have lost significant local assessed value due to the acquisition of property by the Federal Government since 1938. More than $17 million is available for formula construction grants.