Impact aid program, title VII, section 7003

The Department of Education Office of Elementary and Secondary Education awarded Dupree School District 64-2 a total of $2,612,953 in Impact Aid Program funding (CFDA 84.041, Title VII, Section 7003) on October 1, 2025, for the period of performance extending through September 30, 2031. The award provides financial assistance to compensate for reduced local tax base caused by the presence of federally connected children—those living on Federal property or having a parent employed on Federal property or on active duty in the uniformed services—who generate educational costs while their families' property contributions are tax-exempt. Dupree School District 64-2, located in Dupree, South Dakota, serves a rural community with a significant Native American student population. The Impact Aid program replaces lost local revenue that school districts would otherwise collect through property taxes to fund K-12 educational services. Under Section 7003, assistance reaches districts where at least three percent or 400 of eligible federally connected children in average daily attendance live on Federal property including Indian lands or have parents meeting the eligibility criteria. Payments are made annually and computed on a statutory formula basis, prorated if appropriations prove insufficient.