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Administrative Memorandum
 

May
2004

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It is the policy of the Department of Education to provide services to all persons, without regard to race, color, creed, religion, sex, disability, ancestry, or national origin, in accordance with federal and state laws.

 

 

What is Impact Aid (Title VIII)?

In response to recent questions, DOE offers a brief synopsis of the federal Impact Aid program.

Impact Aid is a direct grant of federal funds to assist local school districts that have lost property tax revenue due to the presence of tax-exempt federal property or that have experienced increased expenditures due to the enrollment of federally-connected children.  Impact Aid provides assistance to local school districts with concentrations of children residing on Indian lands, military bases, low-rent housing properties, or other federal properties, or who have parents in the uniformed services or employed on eligible federal properties.

Most Impact Aid funds received by school districts, with the exception of payments for children with disabilities and construction payments, may be used in whatever manner the district chooses in accordance with local and state requirements.

Major components of the Impact Aid grant include:

  • Federal Property payments, referred to as Section 8002, to assist local school districts that have lost a portion of their local tax base because of federal ownership of property.
     
  • Basic Support payments, referred to as Section 8003, help local school districts that educate federally-connected children.  These may be children of members of the uniformed services, children who reside on Indian lands, children who reside on federal property or in federally subsidized low-rent housing, and children whose parents work on federal property.
     
  • Children With Disabilities payments, referred to as Section 8003(d), provide additional assistance to school districts that educate federally-connected children who are eligible for services under IDEA.  A school district that receives these funds MUST use them for the increased costs of educating federally-connected children with disabilities.
     
  • Construction Grants, referred to as Section 8007, are awarded to local school districts that educate high percentages of certain federally-connected children – both children living on Indian lands and children of members of the uniformed services.  These grants help pay for the construction and repair of school buildings.

If you are interested in finding out more information about the Impact Aid program, eligibility requirements, or application procedures, please contact the Impact Aid office in Washington, DC at 202-260-3858 or visit its website at http://www.ed.gov/about/offices/list/oese/impactaid/index.html.