Director’s Quarterly Update – FY 2026, Q3

Happy Summer Everyone!

Welcome to the third issue of this year’s Impact Aid Director’s Quarterly Update.

Final Fiscal Year (FY) 2026 Payment Update

We are excited to announce that as of May, 29, 2026, we have released the final payments for all sections of 7003(b) Basic Support Payments, 7003(d) Children with Disabilities, and 7002 Federal Property. This is the earliest we have released final payments for any fiscal year.

Section 7003(b) payments were made with a final proration of 96.08% and section 7003(d) payments for Children with Disabilities were disbursed at a rate of $1,215.71 per weighted student unit.  

Payment Type Eligible LEAs Total
Section 7002 – Payments for Federal Property
Foundation Payments 202 $64,340,131
Remaining Funds Payments 155 $14,452,769
Section 7003 – Payments for Federally Connected Children
7003(b)(1) - Basic Support 905 $1,190,591,704
7003(b)(2) - Heavily Impacted 24 $286,386,352
7003(e) – Hold Harmless
*Funds included in totals above
354 $51,154,267
Section 7003(d) – Children with Disabilities 773 $49,315,805

If you need a voucher for a recent payment, they are available at any time in the Impact Aid Grant System.  Please view the user guide for specific instructions. 

FY 2026 Discretionary Funding

For FY 2026, the program has $19 million in discretionary funding available for school construction projects. The application is expected to be published on Grants.gov, and the Impact Aid Program’s goal is to make awards before the summer of 2027.

The Department will only be soliciting emergency grants under priority one.  The eligibility requirements for these health or safety emergency grants can be found at 34 CFR 222.177. This summer, we will contact LEAs that may be eligible for these funds and provide more detailed information for potential applicants. 

FY 2027 Early Payment Requests

If your LEA must receive your first FY 2027 Impact Aid payment before the end of December 2026 to meet its expenses, please let us know by requesting an early payment in the Impact Aid Grant System (IAGS). If we are operating under a Continuing Resolution for the start of FY 2027, meaning that we receive a small percentage of our 2027 appropriated funds rather than the full appropriation for the year, we will prioritize initial payments for LEAs that need them the most. The button to request an early payment is at the top of the FY 2027 application page. See the user guide for instructions with screenshots.  

FY 2027 Application Reminders

  • Do not ignore our system generated emails. They contain important information you need for a successful grant application.
  • Monitoring is ongoing and it is imperative you are aware of the deadlines and are communicating any issues with your assigned analyst.
  • The deadline to amend (add or remove information) your data is June 30, 2026.

For more help, please visit this training page to view our amendment user guide, quick tips and short video to assist you in completing an application amendment.

FY 2027 Monitoring Status

Our team is working as expeditiously as possible to review the documentation for the 168 fiscal year FY 2027 applications selected for monitoring. We have completed 75% of our initial reviews and 28% of final reviews. Each application undergoes an initial review, after which LEAs will have 60 days to make any corrections. We expect the majority of initial reviews to be complete by June 30, 2026, and final reviews to be completed by September 30, 2026.

Resource Spotlight– Impact Aid Grant Payment Reports

This month, we highlight the payment reports available on our website. These reports may be helpful to anyone who would like information about Impact Aid Grant payments without logging into the Impact Aid Grant System. These reports provide information about actual Impact Aid grant payments made to local educational agencies (LEAs) from FY 2010 to the present.

For best results, narrow the results by searching for a State, LEA Name, or Federal Fiscal Year prior to exporting the reports to PDF or Excel.  Note that some payment records may be included more than once if the LEA is located in multiple counties.

Upcoming Webinars

We invite you to join one of our upcoming webinars. Please see the details and registration links below. All webinars are free and open to the public.

Topic Date Eastern Time Pacific Time Link to Register
Overview of Section 7003 Grants Thursday, August 13, 2026 2 p.m. 11 a.m. Register Here
How to Conduct a Section 7003 Survey Tuesday, August 18, 2026 2 p.m. 11 a.m. Register Here
Electronic Data Collection Wednesday, August 26, 2026 2 p.m. 11 a.m. Register Here

Office of Elementary and Secondary Education (OESE) Update

OESE recently reorganized, and as a result, the Impact Aid program office is now called the Division of Impact Aid Programs instead of the Office of Impact Aid Programs. This change does not affect our operations; we will continue administering the program as usual.

The new organizational chart is posted here, along with updated functional statements for the offices in OESE.

 

Faatimah Muhammad 

Director, Impact Aid