Impact Aid Program

Impact Aid Program overview

The mission of the Federal Impact Aid Program is to disburse Impact Aid payments to local education agencies that are financially burdened by federal activities. The Department of Education manages the Federal Impact Program and disburses congressionally appropriated funds to LEAs impacted by federal properties, such as land owned by the Department of Defense, Indian reservations and public housing.

When appropriated by Congress, the Department of Defense provides financial assistance to LEAs benefiting military dependent students. The Department of Defense Education Activity administers the Impact Aid Program for DoD on behalf of the Deputy Assistant Secretary of Defense (Military Community and Family Policy) and coordinates with the Defense Finance and Accounting System to disburse payments to eligible LEAs.

Supplement to Impact Aid Program

The Supplement to Impact Aid Program provides financial assistance to eligible local education agencies heavily impacted by the presence of military dependent students. It is not a DoD funded or requested program but rather an annual congressional appropriation.

DoD administers three Supplement to Impact Aid programs:

  • The Supplement to Impact Aid Program provides financial assistance to eligible LEAs heavily impacted by the presence of military dependent students.
  • The Impact Aid for Children with Severe Disabilities Program grants funds to eligible LEAs for providing services to eligible military dependent children with severe disabilities.
  • The Impact Aid for Large Scale Rebasing assists eligible LEAs heavily impacted by the increase or reduction in military dependent student enrollment resulting from large scale rebasing.


When appropriated by Congress, funding eligibility for the Supplemental Impact Aid Program is determined from information provided by LEAs to the Department of Education on their Federal Impact Aid forms. Eligible LEAs must have at least 19.5 percent military dependent students in average daily attendance in their schools, as counted on their Federal Impact Aid application for the preceding year.

The program is certified yearly with information provided by LEAs to the Department of Education on the Federal Impact Aid Form. DoD works with Department of Education to clarify or resolve any funding eligibility issues.

Funding and payment

Funding awards and levels vary according to the number of eligible LEAs and their military dependent students, and the amount of funding appropriated by Congress.

If your LEA has at least 19.5 percent average daily attendance of military dependent students, the district takes no action until contacted by a DoD representative regarding its eligibility for Supplement Impact Aid Program funding.

Prior to June, DoD will distribute eligibility funding information letters to the respective LEAs. A signed Automated Clearing House Vendor/Miscellaneous Payment Enrollment Form, Standard Form 3881, will be requested of eligible LEAs so that DoD can provide direct deposit payments by electronic transfer.

Eligible LEAs receive notification from the DoD no later than June 30, regarding the payment amount and the estimated date they will receive the funds. Payments will be made no earlier than July 1.

Use of funds

As with the U.S. Department of Education Impact Aid Program, the Supplemental Impact Aid payments are reimbursable in nature; therefore, they may be used by the LEA without restriction. There are no statutory requirements mandating that school districts report on the use of these funds.

Office of Management and Budget, Grants Management Forms

LEAs receiving DoD grants may be required to complete Office of Management and Budget Grants Management Forms, including the following:

  • SF 269 - Financial Status Report (Long Form)
  • SF 270 - Request for Advance or Reimbursement
  • SF 271 - Outlay Report and Request for Reimbursement for Construction Programs
  • SF 272 - Federal Cash Transactions Report
  • SF 272A - Federal Cash Transactions Report (Continuation)


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