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KnowledgeBases > Impact Aid Program

Because historically public school budgets depended in large part on local property taxes, the federal government established the Impact Aid program (now Title VIII of the No Child Left Behind Act of 2001) under the Truman Administration in 1950 to help public school districts with large number of students living on federal lands, especially military bases, that were not taxable. The authorizing legislation was amended in 1953 to include Indians living or working on Indian reservations and other federal trust land. Because many public school districts that serve American Indian children cannot draw tax revenue from Indian land or sales made on Indian land, they rely heavily on Impact Aid funding. In fact, many of the 640 Indian impacted school districts are totally dependent on these resources to operate. Besides providing money for the general operating budget of schools, there is also funding available for building schools.

After the establishment of the Impact Aid program, Johnson O'Malley (JOM) funding was reduced and shifted to the funding of special programs for Indian students. Previous to Impact Aid JOM funds went into the general operating budgets of public schools. The Indian Education Amendments of 1978 (P.L. 95-561) required increased Indian involvement in the spending of Impact Aid funds.

 

Additional resources providing information on the Impact Aid Program:

Indian Community Participation in the Impact Aid Program 
 Basics of Impact Aid
 Impact Aid Programs - US Code of Federal Regulations 34 CFR Part 222
 

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