Kadoka Area School District 35-2

Kadoka Area School District 35-2, a South Dakota local government school district headquartered in Kadoka, acts as a federal grant recipient (73% of recent awards) and sub-recipient under formula and project grants administered by the Department of Education's Office of Elementary and Secondary Education, with supplemental funding from the Department of Agriculture's Food and Nutrition Service and the Department of Education's Office of Special Education and Rehabilitative Services.

The district operates almost entirely as a recipient of formula and project grants for Indian education and Impact Aid programs. Prime grant work centers on two recurring federal grant streams: Indian Education Formula Grants to LEAs (CFDA 84.060), which provide annual formula-based allocations to local educational agencies serving Native American students, and the Impact Aid Program under Title VII, Sections 7002 and 7003 (CFDA 84.041), which compensates school districts for federally connected children—those living on federal property, including Indian lands, or with a parent employed on federal property or on active duty in the uniformed services. Kadoka Area School District 35-2 qualifies under Section 7003 where at least three percent or 400 of the total number of eligible federally connected children in average daily attendance live or work on eligible federal property. A representative prime award includes a $442,687 Section 7003 Impact Aid allocation running from October 1, 2025, through September 30, 2031, which replaces revenue lost to the district because federal property is exempt from local property tax, reducing the tax base available to finance education. The district also holds Section 7002 Project Grant awards with multi-year performance periods extending through fiscal year 2031.

Customer concentration is heavily concentrated within the Department of Education ecosystem. The Office of Elementary and Secondary Education funds 67 awards (80% of the district's recent footprint by count), the Food and Nutrition Service provides 9 awards for school lunch programs, and the Office of Special Education and Rehabilitative Services accounts for 3 awards, covering 98% of all awards. The district's sub-recipient role routes $18.9 million in obligated federal dollars through the South Dakota Department of Education as prime grantee, receiving allocations under Title I Basic, Title IIA REAP (Rural Education Achievement Program), IDEA Flowthrough Part B (special education), Title IV (student support), and the National School Lunch Program Block Grant. A single sub-award also flows through the State of South Dakota for EANs GEER COVID relief funding. Award volume has remained modest and consistent over the past five years, with 3 awards in 2022, 11 in 2023, 10 in 2024, 9 in 2025, and 3 in the first three months of 2026. Only one award faces ultimate completion inside the next twenty-four months, indicating minimal recompete exposure through late 2027.