Section 7003 Basics

Payments for Federally Connected Children

Section 7003 provides funding for eligible school districts who provide a free, public education to federally connected children. These are children who reside with a parent on active duty in the Uniformed Services, reside on Indian lands, reside on Federal property, or who have a parent that is employed on Federal property. Additionally, Section 7003 also provides payments for certain federally connected children with disabilities who are eligible under the Individuals with Disabilities Education Act (IDEA). 

Check out our resources page or contact your state analyst for more information.

Student

Parent

Statutory Category

Weight in Payment Formula

Additional Payment for Children with Disabilities

Lives on Federal property

Works on Federal property

A(i)

1.0

No

Lives on Federal property

Foreign Military Officer

A(ii)

1.0

Yes

Lives on Federal property

U.S. Uniformed Services

B

1.0

Yes

Lives on Indian lands

N/A

C

1.25

Yes

Lives off Federal property

U.S. Uniformed Services

D(i)

0.2

Yes

Lives off Federal property

Foreign Military Officer

D(ii)

0.2

Yes

Lives on eligible Federal low rent housing

Works off Federal property

E

0.1

No

Lives on Federal property

Works off Federal property

F

0.05

No

Lives off Federal property

Civilian working on Federal property in the LEA

G(i)

0.05

No

Lives off Federal property

Civilian working on Federal property in the LEA’s state

G(ii)

0.05

No

Eligible entities are Local Educational Agencies (LEAs) who provide a free, public education.

Basic Eligibility

The Local Educational Agency has 3% or 400 children in Average Daily Attendance in the following categories:

  • Parent lives and works on Federal property (category A(i))
  • Parent is in the Uniformed Services (categories A(ii), B, D(i), D(ii))
  • Child lives on Indian land (category C)
  • Child lives in eligible Federal low rent housing (category E)

F&G Eligibility

The Local Educational Agency has 10% or 1,000 in Average Daily Attendance in the following categories:

  • Child lives on Federal property other than Indian land or low rent housing (category F)
  • Parent is a civilian employed on Federal property (categories G(i) and G(ii))
Eligibility Resources

LEAs must apply online by January 31 each year through the Impact Aid Grant System (IAGS).

  • To apply, you will need to obtain access to the IAGS or make sure your account is activated. Click here to request an account or Click here to request account reactivation.
  • LEAs report Federally connected membership counted by several possible survey methods and total membership on the survey date to apply.  See the training videos linked below for information on how to conduct a survey of Federally connected students in accordance with the program regulations.
  • LEAs that claim children residing on Indian Land need to obtain the appropriate certifications to show eligibility and comply with the requirements regarding Indian Policies and Procedures (IPPs).
  • Other special types of information that may be required includes information on Pre-K, National Guard/Reserves, Low-Rent Housing and Children with Disabilities.
Application Resources
Impact Aid Grant System Resources