Thune’s bill ensuring stable funding for school districts becomes law

Bipartisan legislation sponsored by U.S. Sen. John Thune (R-SD) to ensure stable funding levels for school districts participating in the Impact Aid Program became law on Jan. 21 with President Joe Biden’s signature.

“It’s more important than ever for school districts in South Dakota that participate in the Impact Aid Program to have the funding stability and certainty they need for the upcoming school year,” Sen. Thune said. “That’s why I’m pleased to announce that this critical legislation is now law, and it will be extremely beneficial to school districts across South Dakota and the nation.” 

The Supplemental Impact Aid Flexibility Act, S. 2959, which Sen. Thune introduced in October 2021 with lead original cosponsor U.S. Sen. Tina Smith (D-MN), revises the fiscal year 2023 application process for the Impact Aid Program during the ongoing COVID-19 pandemic.

The new law will require local educational agencies participating in the program to use the student count or federal property valuation data from their FY 2022 program applications for their FY 2023 program applications to apply for funding that will replace lost property tax revenue or for increased expenditures due to enrollment of federally connected children, such as children living on Indian lands or military bases, according to the congressional record bill summary.

“As the pandemic continues to hit many Minnesota school districts hard, it’s important that districts receiving Impact Aid maintain reliable, stable funding so students can keep learning,” said Sen. Smith. “I’m glad we could deliver on this and ensure that while the pandemic continues to affect school operations, our Impact Aid districts won’t have to recalculate their student headcounts.”

The U.S. Senate in December 2021 approved S. 2959, which the U.S. House of Representatives approved with a 414-6 vote on Jan. 18 before presenting it to the president for his signature to make the measure law.