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Impact Aid Full Funding Legislation

Impact Aid Full Funding Legislation

 

Because of the end of the budget caps and the new administration, NAFIS supports H.R. 5255, the Advancing Toward Full Funding Act. This is a bipartisan bill aimed at fully funding the Impact Aid program. Based on the IDEA Full Funding Act (HR 1878 and S 866 in the 116th Congress), this legislation would lay out a five year glidepath to Impact Aid full funding, splitting the $1.1 billion request evenly over five years. Funding requests can be seen in the table below:

 

 

Total Increase

Annual Funding in Five Year Glidepath

Basic Support

$950,000,000.00

$190,000,000.00

Federal Property

$54,000,000.00

$11,000,000.00

CWD

$45,000,000.00

$9,000,000.00

Total

$1,049,000,000.00

$210,000,000.00

Oklahoma

Basic Support

$45,257,557.90

Federal Property

$1,253,673.99

CWD

$2,050,501.28

Total

$48,561,733.17

For Basic Support, the request would fully fund the program at 2019 levels. Full funding would be $2.24 billion and in FY19, funding was $1.29 billion, leaving $950 million unfunded. For Federal Property, the request is a proportional increase to that of Basic Support (the full funding as calculated in the Federal Property formula has some flaws and would be a nonstarter for many offices). This would be $54 million. For Children with Disabilities, the funding currently breaks down to $1,200 per eligible student (or $600 for an off-base military-connected student). The request would increase that to $2,000 (or $1,000 for off-base military). For Oklahoma, the increase would be approximately $48,561,733.17.

 

 

The idea of fully funding Impact Aid has not been practical in years. The last time Impact Aid was fully funded was 1969. Because of the budget caps and political realities of the past decade, we kept our requests small and practical and have led to increases every year, but often not enough to cover the rising cost of the Impact Aid formula. When COVID relief packages were being considered, NAFIS requested an increase to Impact Aid. We requested that the program be fully funded. In the Senate, Senators Gillibrand and Murkowski led a bipartisan letter on May 14, 2020 supporting the following:

  • Section 7003 –to fully fund the Basic Support Program to ensure that federally impacted districts are able cover the gaps in funding compared to non-federally impacted districts and enable them to respond to costs associated with the virus;
  • Section 7003(d) – to support children with disabilities during the pandemic by increasing payments for students with an active Individualized Education Program (IEP); and
  • Section 7002 – Federal Property to support districts with non-taxable federal lands respond and recover from the virus and mitigate potential state and local funding gaps.  

 

That letter was signed by 21 Senators – including four Republicans. However, the COVID relief bills all followed the model of the CARES Act in not funding specific Title programs.

 

 

Please click on the Link Below to view the full document:

 

Impact Aid Full Funding Legislation Oklahoma.docx