The Impact Aid Discretionary Construction Grant Program authorizes competitive, matching grants for emergency repairs and modernization of school facilities to certain eligible LEAs that receive Impact Aid. Emergency repair grants must be used to repair, renovate, or alter a public elementary or secondary school facility to ensure the health, safety, and well being of students and school personnel. Modernization grants may be used to extend a public elementary or secondary school facility to ease overcrowding and provide facilities that support a contemporary educational program, including technology. Applications for Emergency grants receive first and second priority in the competition, while applications for Modernization grants are treated as third and fourth priorities. Only districts in which 40 percent of the student population meets the requirements of Title VIII of the Elementary and Secondary Education Act of 1965 are eligible to receive Impact Aid awards. Title VIII schools include public school districts with students who live on land owned by the federal government or that have been removed from the local tax rolls by the federal government, including Indian lands. These grants are meant to supplement the loss of that taxpayer money spent toward education.

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