Impact Aid provides critical funding for over 1,200 public school districts

NSBA and a coalition of more than 55 organizations and education groups are urging policymakers to reject the Administration’s Fiscal Year 2018 budget proposal to eliminate funding for Impact Aid (Title VII), Section 7002 (Federal Properties).

Federal properties don’t pay district and local taxes making school districts rely upon Impact Aid payments (currently $68 million) to compensate for the presence of non-taxable federal properties within their boundaries. 

Impact Aid provides critical funding to over 1,200 public school districts nationwide that educate military children, children residing on Indian lands, children living in federal low-rent housing facilities, children of civilian employees of the federal government, and the children in school districts with significant tax-exempt federal property.

The Administration contends that this program doesn’t apply to the presence of federally-connected students (such as those whose parents/guardians are enlisted in the Armed Forces), and doesn’t necessarily support the education of federally-connected students.

We beg to differ and assert that Impact Aid Payments must be maintained for the benefit of all students in these districts.

Impact Aid payments support personnel and professional development, academic materials, transportation, technology, and other general operating district expenses. Elimination of this funding stream would cause financial harm to over 1,200 public school districts and be a reversal on a 68-year commitment to federally impacted communities.

The coalition's recent letter to policymakers is available here.

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