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Program Assessment


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Impact Aid Basic Support Payments and Payments for Children with Disabilities

This program provides financial support to school districts that lose revenue due to the presence of children who live on or whose parents work on Federally owned land in the district, which is exempt from local taxes. These funds help replace lost local tax revenue that would otherwise be available to educate its students.


What This Rating Means


This rating describes a program that needs to set more ambitious goals, achieve better results, improve accountability or strengthen its management practices.
  • The program has a clear purpose, but the program design may not adequately target according to need. The statute has special formula provisions that benefit a few select school districts without regard to need. The funding formula also does not take into account different State funding mechanisms.
  • The program has measures for payment timeliness and accuracy, and two new output measures in place to determine how well formula payments make up for lost revenue. A recent evaluation found that the link between the amount of payments to a district and its financial need varies by types of students and districts.
  • The program has adequate financial management and has achieved efficiencies through data systems improvements. The improvements have increased efficiencies in calculating payments, reduced the potential for errors through automating steps in the payment process, and permitted more efficient and effective data review.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Continuing development and implementation of a model for estimating the effectiveness of the program in delivering an appropriate amount of assistance to Federally affected school districts.
  • Developing a long-term or annual performance measure specific to the payments to Children with Disabilities program
  • Working with Congress to correct the structural flaws in the program.

Learn More

The content on is developed by the U.S. Office of Management and Budget and Federal agencies.