Hagan Cosponsors Bill To Speed Up Payments To NC Schools

Press Release

United States Senator Kay R. Hagan (D-NC) cosponsored legislation to speed up the federal funding process for schools in military and tribal communities. The Impact Aid Timely Repayment Act will expedite Impact Aid funding to schools in North Carolina. Currently, school districts often receive this funding years late.

"In North Carolina, 31 school districts rely on Impact Aid, and this bill will ensure this crucial funding is sent to schools in a timely manner," said Hagan, who sits on the committee that oversees education issues. "Right now, districts have to guess when this funding will arrive, causing great uncertainty as school officials plan their budgets. I am working with my colleagues to ensure the Senate considers this important legislation for our students."

Impact Aid funding is provided to school districts that educate a significant number of federally-connected children, such as those who live on military bases or reservations. Currently, school districts are still waiting for Impact Aid that was appropriated as long as five years ago. North Carolina schools are due an estimated $4.1 million in back payments for fiscal years 2007 to 2009. This bill will require the Department of Education to make Impact Aid payments to school districts within two years of funds being appropriated.

Impact Aid disburses roughly $1.3 billion each year directly to school systems. The funding can supply as much as 75 percent of the local education operating budget.

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