2025 Legislative Agenda

Impact Aid is a federal education program that reimburses school districts for lost tax revenue and additional costs due to the presence of nontaxable federal land, including military installations, Indian trust and treaty lands, federal low-income housing, national laboratories, and other federal properties. Since most public school districts rely on local taxes for funding, districts containing federal property can face significant financial challenges. Impact Aid funding can be used to meet any general fund need, including staffing, mental health services, technology and transportation, benefiting all students. Despite its importance, Impact Aid has not been fully funded in decades. To ensure Impact Aid fulfills its purpose, in 2025 NAFIS is advocating to:

Increase funding for Impact Aid for FY 2025 and FY 2026

With schools facing many challenges, including the need for facilities upgrades, teacher recruitment and retention issues, and recent funding cuts, Impact Aid is more crucial than ever. Additional funds are essential to make certain that federally impacted school districts have the resources they need to provide a quality education.

Advancing Toward Impact Aid Full Funding Act

The Federal Government has not met its responsibility to fully fund Impact Aid since 1969. The bipartisan Advancing Toward Impact Aid Full Funding Act would create a five-year plan to fully fund Section 7003 Basic Support and offer a proportional increase to Section 7002 Federal Property. It would also provide substantial boosts to Section 7003(d) Children with Disabilities and Section 7007 Construction. These increases would deliver significant annual funding improvements for school districts, helping ensure all students have the resources they need to reach their full potential.

Impact Aid Infrastructure Partnership Act

The current Impact Aid Construction allocation of just $19 million per year is insufficient to meet most internal renovation needs and provides no funding to build new schools or address teacher housing. The Impact Aid Infrastructure Partnership Act proposes an additional $1 billion over four years ($250 million per year) for the program, providing students and staff in federally impacted school districts with access to safe, modern education facilities.

Celebrate the 75th anniversary of Impact Aid

2025 marks the 75th anniversary of Impact Aid, which was signed into law by President Harry S. Truman in 1950. To commemorate this milestone, NAFIS will work with Impact Aid champions in the Senate and House to introduce celebratory resolutions recognizing September 30, 2025, as “Impact Aid Day.”

Grow the Congressional Impact Aid Caucus

By joining the bipartisan and bicameral Congressional  Impact Aid Caucus (formerly the House and Senate Impact Aid Coalitions), Members of Congress show support for federally impacted school districts and Impact Aid. Established in the 1990s, the Caucus has led many successful efforts to protect and prioritize the Impact Aid program. If you talk to a Member who is not currently on the caucus, suggest they join. Have them contact JSchimmenti@nafisdc.org to sign up or with any questions.

View Current Caucus Members

Download the 2025 Legislative Agenda