A bill to amend section 7014 of the Elementary and Secondary Education Act of 1965 to advance toward full Federal funding for impact aid, and for other purposes.
- Bill Number
- S. 2921
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-09-19: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2025-12-16T16:41:11Z
AI-Generated Summary
Purpose
This bill, S. 2921, aims to update funding authorizations in the Elementary and Secondary Education Act of 1965 (ESEA) to gradually increase federal support for Impact Aid programs. Impact Aid provides financial assistance to local school districts that lose tax revenue due to federal activities, such as military bases or other non-taxable federal properties, helping these districts cover education costs.
Key Provisions
- Amendments to Section 7014 of ESEA: The bill replaces existing subsections (a) through (d) with new authorization levels for federal appropriations from fiscal year (FY) 2026 to 2031. These cover specific Impact Aid categories:
- Payments for Federal Acquisition of Real Property (under section 7002): Funds payments to school districts for lands acquired by the federal government, reducing local tax bases. Authorized amounts increase annually from $90.3 million in FY 2026 to $150.3 million in FY 2031.
- Basic Payments and Payments for Heavily Impacted Local Educational Agencies (under section 7003(b)): Supports general education costs in districts heavily affected by federal presence (e.g., high numbers of students from military families). Authorized amounts rise from $1.63 billion in FY 2026 to $2.45 billion in FY 2031.
- Payments for Children with Disabilities (under section 7003(d)): Provides extra aid for educating students with disabilities in impacted districts. Authorized amounts grow from $60.3 million in FY 2026 to $120.3 million in FY 2031.
- Construction Funds (under section 7007): Allocates money for building or repairing school facilities in affected areas. Authorized amounts increase from $22.9 million in FY 2026 to $45.4 million in FY 2031.
- The bill was introduced by Senators Luján, Tillis, Gillibrand, and Mullin on September 19, 2025, and referred to the Senate Committee on Health, Education, Labor, and Pensions.
Significant Changes to Existing Law
- Replaces prior authorization levels in section 7014 with higher, escalating amounts over six years, representing a step toward "full federal funding" for Impact Aid as promised in the original ESEA.
- Shifts from static or lower funding caps to progressive increases (approximately 12-13% annually in most categories), potentially allowing more consistent and growing support without needing annual reauthorizations.
Potential Impacts
- On Government Agencies: The U.S. Department of Education would administer larger budgets for these programs, requiring updated allocation processes but easing administrative burdens on underfunded districts. No direct impact on international relations.
- On Citizens: School districts near federal installations (e.g., military bases) would receive more reliable funding, potentially improving education quality, facilities, and services for students, including those with disabilities. This could benefit over 1 million students in about 1,100 districts nationwide, reducing local tax hikes or program cuts.
- Broader Effects: Increases federal spending on education equity, helping offset the financial strain from federal land use, but could add to the national deficit if fully appropriated.
Main Stakeholders Affected
- Local Educational Agencies (LEAs): Primarily school districts in areas with significant federal presence, such as those near Department of Defense facilities or Native American reservations, which rely on Impact Aid for up to 20-30% of their budgets.
- Students and Families: Especially military families and children with disabilities in these districts, who gain from enhanced resources.
- Federal Government: The Department of Education and Congress, as funders and overseers.
- Taxpayers: Local communities avoid greater property tax burdens; national taxpayers fund the increases.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens ESEA's framework for compensating local governments for federal impacts, aligning with statutory obligations under Impact Aid without altering eligibility rules. No challenges to core education funding precedents.
- Constitutional: Supports the federal government's role in mitigating its own effects on state and local revenues (per the Property Clause and spending power), promoting equal educational opportunities without infringing on states' primary education authority.
- Political: Bipartisan sponsorship signals broad support for military and rural education needs; if passed, it could set a precedent for indexed funding in other aid programs, influencing future budget debates amid fiscal constraints.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Tillis, Thomas [R-NC], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Mullin, Markwayne [R-OK]
Recent Actions
- 2025-09-19: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2025-09-19: Introduced in Senate
Bill Versions
- To amend section 7014 of the Elementary and Secondary Education Act of 1965 to advance toward full Federal funding for impact aid, and for other purposes. — issued 2025-09-19 — PDF (3 pages)