Current ED Impact Aid Funding

Father and daughter with a flagToday, the ED Impact Aid programs distribute nearly $1.3 billion dollars to school districts with concentrations of children residing on trust or restricted Indian lands, military bases, or low-rent housing properties or other Federal properties. To a lesser extent, Impact Aid also supports concentrations of children who have parents in the uniformed services or employed on eligible Federal properties who do not live on Federal property. Here are some key facts about ED Impact Aid funding:

  • Impact Aid is a major source of general funding for over 1,300 LEAs nationwide, or 9.8 percent of all districts.
  • For some LEAs, Impact Aid supplies as much as 75 percent of the local educational operating budget.
  • Impact Aid also provides additional assistance to approximately 700 LEAs that educate federally connected children who are eligible for services under the Individuals With Disabilities Education Act (IDEA).  

The Impact Aid Program receives approximately $17.5 million annually for school construction.  Depending on the appropriations language, the funds are distributed either by formula or through the competitive grant process. To qualify for school construction funds, a school district must have 50 percent of children in average daily attendance who reside on Indian lands or who have an active-duty military parent.

Most Impact Aid funds, except for the additional payments for children with disabilities and construction payments, are considered general aid to the recipient LEAs. Since the purpose of Impact Aid is to replace local revenues lost due to the Federal activity, districts treat this Impact Aid as they would local revenues. School districts use the funds in whatever manner they choose in accordance with their state and local requirements. Most recipients use these funds for current expenditures to pay the salaries of teachers and teacher aides; to purchase textbooks, computers, and other equipment; to fund afterschool programs,  remedial tutoring, advanced placement classes, and special enrichment programs. Recipients may also use the funds for other purposes such as capital expenditures.