Impact Aid is a federal program that provides funding for a portion of the educational costs of military personnel.  Most school districts receive funding from state and local property taxes. When military children attend public schools, enrollment is increased but local tax revenue is not generated because families live and shop on federal property, which is not taxed.  Therefore, the federal government acts as the local taxpayer by funding the Impact Aid program for local school districts. 

In order for school districts to be eligible for the Impact Aid program, a school district must have at least 400 federal students in their Average Daily Attendance or at least 3% of all children in the school district’s Average Daily Attendance must be federally connected.  School districts must conduct a “First Count” student survey each year to identify the number of federally connected students.  Military personnel can assist school districts in adequately counting students by completing the “First Count” form.  These forms are used to determine the district’s eligibility and funding through the Impact Aid Program.  More information on Impact Aid Funding can be located at

http://www.ed.gov/about/offices/list/oese/impactaid/index.html

or

http://www.nmfa.org/site/DocServer/Impact_Aid1-06.pdf?docID=6121