Background of Impact Aid

Background of the Impact Aid Program:

The Impact Aid Program, signed into law by President Harry Truman in 1950, is the nation’s oldest K-12 Federal education program. Nationwide, approximately 1,200 school districts enrolling more than 11 million students benefit from Impact Aid funding, which is appropriated annually by Congress.

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. Most public school districts are funded largely through local property taxes, and because Federal land is exempt from taxation, school districts containing Federal property are at a financial disadvantage in funding their schools.

Impact Aid funding is direct, locally controlled and flexible. All Impact Aid funds appropriated annually by Congress are disbursed directly to school districts – bypassing state involvement. They can be used for any general fund purpose, such as instructional materials, salaries, transportation, technology or capital needs. All decisions on how Impact Aid funds are spent are made locally. This flexibility and local control allows school district leaders to target funds supporting all students wherever the needs are greatest.