H.R. 2629, the Impact Aid Infrastructure Partnership Act, provides $250 million annually for four years to help federally impacted school districts—particularly those serving Native American communities and remote areas—repair or replace deteriorating school buildings. The program distributes funds through two channels: competitive grants covering 75% of funds for districts facing urgent health and safety emergencies, and formula grants providing 25% of funds for districts with limited ability to borrow money. The Department of Education will prioritize districts with lower property values and those serving high percentages of federally connected students, while requiring most recipients to contribute 10-25% of project costs based on their financial capacity, though the poorest districts can receive full federal funding for smaller projects. This targeted approach aims to address infrastructure challenges in schools where high construction costs and teacher housing shortages create particular obstacles to facility improvement.
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