Lesson 2 Summary

Key Points:

  • Impact Aid is a major source of general funding for 9.8 percent of U.S. school districts, and in some cases it supplies as much as 75 percent of the local educational operating budget.
  • The Impact Aid Program receives approximately $17.5 million annually for school construction that is distributed by competitive, not formula grants.
  • Impact Aid provides Federal funds to support property taxes lost to Federal property, children with disabilities, and construction grants.
  • Basic Support Payments account for nearly all Impact Aid funding.
  • Districts must have at least 3 percent federally connected students in their average daily attendance or 10 percent of total student enrollment who live on Federal property or whose parent works on Federal property to be eligible for Basic Support Payment funds.
  • Impact Aid calculations are based on counts from the previous year, so funding only impacts a current school year.

Looking Forward: Next, learn about the ED Impact Aid application process and funding formulas.