Impact Aid Section 7002 - Payments for Federal Property

Program Description

Payments for Federal Property assist local school districts that have lost a portion of their local tax base because of Federal ownership of property. To be eligible, a school district must demonstrate that the Federal Government has acquired, since 1938, real property with an assessed valuation of at least 10 percent of all real property in the district at the time of acquisition.

Contact Impact Aid Staff

Use this list to see your direct contact information for technical assistance.

Eligible local educational agencies that wish to apply for Impact Aid must apply online each year using the Impact Aid Grant System.

The application becomes available each year in November and must be submitted by the following January 31. A potential applicant should review the Impact Aid Program law and regulations to determine if it might be eligible before applying for Impact Aid.

If you have questions about the application process, please visit our website or contact us by e-mail at Impact.Aid@ed.gov. 

Under Payments for Federal Property, approximately 200 LEAs receive Impact Aid payments for federal property annually. Payments generally are deposited in eligible LEAs' general fund accounts and are used for general operating expenses such as teacher salaries, utilities, administrative costs, books, and supplies. Funding is not provided to private schools.

Please visit the Impact Aid website for links to the statute, regulations, and guidance documents.

A local educational agency (LEA) is generally eligible for section 7002 assistance if it meets the following basic requirements:

1. The United States has acquired ownership of real property within the school district since 1938.
2. Such property was not acquired by exchange for other Federal property that the Federal Government owned before 1939, or
3. The assessed valuation of such property represented 10 percent or more of the total assessed valuation of all real property in the LEA at the time or times of Federal acquisition.

An LEA may base its eligibility on a former district contained within its boundaries.

The law provides a special exception for certain LEAs that meet the following criteria:

The LEA contains between 20,000 and 60,000 acres of land that has been acquired by the U. S. Forest Service between 1915 and 1990 as demonstrated by U.S. Forest Service records, and the LEA serves a county chartered by State law in 1875 or 1890.

Please visit the Impact Aid website for training, templates, and other resources.