The mission of this program is to disburse Impact Aid payments to local educational agencies that are financially burdened by federal activities. Funds are provided under Section 7002 and 7003(b) of the ESEA to local public school districts that serve significant numbers of federally connected children and that have lost a substantial portion of local property tax base due to the acquisition of federal property. Funds are available for all general fund purposes and can be expended for any purpose, similar to local revenue for education.
Impact Aid funds received by school districts under sections 7002 and 7003(b) may be used to support connectivity if a district chooses. Impact aid districts may use the general aid money that they receive however they choose, as long as it’s an allowable use under state or local rules. Districts typically use these general Impact Aid funds for current expenditures for their day-to-day operations. Funds under these two sections are not subject to the Uniform Administrative Requirements.
This is one of a number of Department programs that provide funds that could be used to support broadband access relating to education. The allowability of costs is always situation and program specific. For that reason, if you decide to use funds under one of these programs for costs related to broadband access, you must be sure that the use of the funds is, under the specific circumstances of the expenditure and the program authority selected, reasonable and necessary for the purposes of that program, and does not violate other program requirements, such as supplement not supplant, if it applies to program. We also note that, while funds under one of these programs can be used on broadband access, the programs’ purpose is not primarily focused on that issue.
