The Impact Aid Program provides essential funding to school districts that lose local tax revenue due to the presence of federal land, such as military bases, Native American reservations, and national parks. Because federal land is exempt from property taxes, affected school districts receive direct financial assistance to support educational operations and infrastructure. Funding is allocated through multiple components, including Basic Support Payments, Payments for Federal Property, Construction Grants, and Special Education Support for federally connected children with disabilities. The program ensures that school districts impacted by federal land ownership can continue to provide quality education despite reduced local revenue sources.