S 2921119th CongressIn Committee

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.

Introduced: Sep 19, 2025

Education

Standard Summary

Comprehensive overview in 1-2 paragraphs

S. 2921, introduced in the 119th Congress, seeks to amend Section 7014 of the Elementary and Secondary Education Act of 1965 to move toward full federal funding of Impact Aid. The bill replaces existing subsections of Section 7014 with a new framework that sets explicit annual authorizations for four Impact Aid programs over six fiscal years (2026–2031). These programs cover payments tied to (1) the federal acquisition of real property (Section 7002), (2) basic payments and payments for heavily impacted local educational agencies (Section 7003(b)), (3) payments for children with disabilities (Section 7003(d)), and (4) construction (Section 7007). The stated goal is to increase federal support for districts affected by federal activity, with escalating funding levels each year, signaling a commitment to progressively reach full federal funding for Impact Aid. Note that authorizing appropriations does not itself provide funds; actual funding would require subsequent appropriations by Congress. The bill was introduced in the Senate by Sen. Lujan, with co-sponsors Sen. Tillis, Sen. Gillibrand, and Sen. Mullin, and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Key Points

1Replaces Section 7014(a)-(d) with a new set of authorized appropriations for six fiscal years (2026–2031) across four Impact Aid programs.
2Four targeted funding streams:
3- Payments for Federal Acquisition of Real Property (Section 7002)
4- Basic Payments; Payments for Heavily Impacted Local Educational Agencies (Section 7003(b))
5- Payments for Children With Disabilities (Section 7003(d))
6- Construction (Section 7007)
7Specific annual authorization amounts for each program and year, showing a steady increase each year through FY2031.
8- Real property payments rise from $90,313,000 (FY2026) to $150,313,000 (FY2031)
9- Basic/heavily impacted payments rise from about $1.63B (FY2026) to about $2.45B (FY2031)
10- Disabilities payments rise from $60,316,000 (FY2026) to $120,316,000 (FY2031)
11- Construction payments rise from $22,906,000 (FY2026) to $45,406,000 (FY2031)
12The legislation aims to advance toward full funding for Impact Aid, though actual funding would require future appropriation action by Congress.

Impact Areas

Primary group/area affected- Local educational agencies (LEAs) and school districts that qualify for Impact Aid, including those with large numbers of federally connected students or nearby federal property, will see structured, escalating funding in four programs (real property, basic/heavily affected, disabilities, construction) if enacted.Secondary group/area affected- Students with disabilities (beneficiaries of the Disabilities payments) and districts undertaking construction projects funded by Impact Aid.Additional impacts- The bill changes the funding mechanism from existing subsections to a defined, year-by-year authorization schedule, increasing federal financial commitment over time. This would require subsequent appropriation to become actual spending. It also underscores Congress’s intention to move toward full federal funding for Impact Aid, which could affect state/local budgeting and the reliance on local property taxes in districts affected by federal activity.

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