DoDI 1342.18

Department of Defense
INSTRUCTION
NUMBER 1342.18
February 6, 2006
USD(P&R)

SUBJECT: Financial Assistance to Local Educational Agencies (LEAs)
References: (a) DoD Instruction 1342.18, “Financial Assistance to Local Education Agencies,”
August 10, 1999 (hereby canceled)
(b) Section 7703 note of title 20, United States Code
(c) Section 7703a of title 20, United States Code
(d) Section 7703 of title 20, United States Code
(e) through (k), see Enclosure 1

1. REISSUANCE AND PURPOSE
This Instruction:
1.1. Reissues reference (a).
1.2. Updates responsibilities and procedures according to reference (b) to provide financial
assistance to eligible local educational agencies (LEAs) to benefit dependent students of
members of the Armed Forces and DoD civilian employees.
1.3. Assigns responsibilities and prescribes procedures according to reference (c) for
providing payments to eligible LEAs that provide services to military dependent children with
severe disabilities.

2. APPLICABILITY
This Instruction applies to the Office of the Secretary of Defense, the Military Departments, the
Chairman of the Joint Chiefs of Staff, the Combatant Commands, the Office of the Inspector
General of the Department of Defense, the Defense Agencies, the DoD Field Activities, and all
other organizational entities in the Department of Defense (hereafter referred to collectively as
the “DoD Components”).

DoDI 1342.18, February 6, 2006

3. DEFINITIONS
Terms used in this Instruction are defined in Enclosure 2.

4. POLICY
DoD shall provide financial assistance to LEAs that benefit military dependent students under
reference (b) and payments to LEAs that provide services to military dependent children with
severe disabilities under reference (c), when funds are appropriated for these purposes.

5. RESPONSIBILITIES
The Under Secretary of Defense for Personnel and Readiness (USD(P&R)) shall:
5.1. Monitor compliance with this Instruction and references (b) and (c).
5.2. Develop and administer procedures according to references (b) and (c) to:
5.2.1. Determine the eligibility of LEAs for financial assistance.
5.2.2. Provide timely notification to LEAs of their eligibility for such assistance.
5.2.3. Provide timely payment of such assistance.
5.3. Confer with the Secretary of Education to secure data needed to implement references
(b) and (c).

6. PROCEDURES
6.1. DoD Supplemental Impact Aid Program
6.1.1. When funds have been appropriated to provide financial assistance, the
USD(P&R) shall notify eligible LEAs that funds are available. An LEA is eligible for assistance
during a fiscal year if:
6.1.1.1. At least 20 percent (as rounded to the nearest whole percent) of the students
in average daily attendance (ADA) in the schools of that LEA during the preceding school year
were military dependent students as counted under subsection (a)(1) of 7703 of title 20 United
States Code (reference (d));

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DoDI 1342.18, February 6, 2006

6.1.1.2. There has been a significant increase in the number of military dependent
students in ADA in the schools of that LEA as a result of a relocation of Armed Forces personnel
or DoD civilian employees, or as a result of a realignment of one or more military installations as
a result of the base closure process.
6.1.1.2.1. When it is anticipated that there shall be a significant increase in the
number of military dependent students in ADA of an LEA, the Military Department Secretary of
the affected Service shall notify the USD(P&R).
6.1.1.2.2. A significant increase for purposes of subparagraph 6.1.1.2. is an
increase of at least 20 percent (as rounded to the nearest whole percent) in the ADA of the
military dependent students in the schools of an LEA, as counted under Subsection (a)(1) of
reference (d), between the end of the school year preceding the fiscal year for which payments
are authorized and the beginning of that school year. Such increase must equal a minimum of
250 additional military dependent students.
6.1.1.3. During the period between the end of the school year preceding the fiscal
year for which payments are authorized and the beginning of that school year, the LEA had an
overall reduction of not less than 20 percent in the number of military dependent students as a
result of the closure or realignment of military installations.
6.1.3. The USD(P&R) shall determine the eligibility of LEAs for assistance based upon
data collected by the Department of Education (ED) in connection with ED’s administration of
the Federal Impact Aid program.
6.1.4. The data shall include the ADA figures for military dependent students in
attendance at each LEA, segregated by whether such students reside on or off Federal property.
6.1.5. The USD(P&R) shall distribute funds based on the ADA of military dependent
students attending each qualifying LEA. Each LEA shall receive five times more money for a
student who resides on Federal property than for one who resides off Federal property. The
amount of financial assistance shall be calculated as follows:
6.1.5.1. Determine the per capita amount available to LEAs for each military
dependent student that resides off Federal property by dividing the total amount of dollars
available to the LEA by the sum of the number of students who resided off Federal property plus
five times the number of military dependent students who reside on Federal property. Example:
$30M/[(total number off Federal property) + 5(total number on Federal property)].
6.1.5.2. Determine the per capita amount available to LEAs for each military
dependent student residing on Federal property by multiplying the per capita amount determined
under subparagraph 6.1.5.1 by five.
6.1.5.3. Each LEA’s total amount of assistance shall be the sum of the number of offFederal property students multiplied by the per capita figure determined under subparagraph

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DoDI 1342.18, February 6, 2006

6.1.5.1, plus the number of on-Federal property students multiplied by the per capita amount
found by completing the computation in subparagraph 6.1.5.2 above.
6.1.6. The figures used to compute the Average Per Pupil Expenditures (APPE) shall be
obtained from data provided by ED.
6.2. DoD Impact Aid for Children with Severe Disabilities Program
6.2.1. When funds are appropriated under reference (c), the USD(P&R) shall notify
LEAs that they may be eligible to receive funds. An LEA may be eligible to receive such funds
if that LEA applied for and was approved by ED to receive Federal Impact Aid under reference
(d) for the appropriate fiscal year.
6.2.1.1. The USD(P&R) shall identify LEAs that may be eligible for funds under
reference (c) based upon the information that such LEAs have provided to ED on the Federal
Impact Aid form for the appropriate fiscal year.
6.2.1.2. The data provided by ED shall include the ADA figures for military
dependent children with severe disabilities in attendance at each LEA.
6.2.2. The USD(P&R) shall send correspondence to each of the identified LEAs inviting
them to complete an application for payment under the criteria in reference (c). The
correspondence shall include Secretary of Defense (SD) Form 816 and its continuation sheet, SD
Form 816C for the appropriate school year, and guidelines for completion of SD 816 and SD
816C.
6.2.3. The USD(P&R) shall make payments to LEAs based upon the data collected by
ED in connection with its administration of the Federal Impact Aid program and upon
information submitted and certified by the LEAs. If the amount available for a fiscal year is
insufficient to pay the full amount LEAs are eligible to receive, the USD(P&R) shall ratably
reduce the amounts of payments made to all eligible LEAs by an equal percentage.
6.2.4. The USD(P&R) shall comply with all other applicable provisions of reference (c)
in providing payment to LEAs.

7. INFORMATION REQUIREMENTS
This Instruction authorizes use of the following forms1
7.1. SD Form 816, “Application for Department of Defense Impact Aid for Children with
Severe Disabilities for School Year 20XX-20XX.”

1

Copies of SD Forms 816 and 816C may be obtained at
http://www.dtic.mil/whs/directives/infomgt/forms/formsprogram.htm

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DoDI 1342.18, February 6, 2006

7.2. SD Form 816C, “Application for Department of Defense Impact Aid for Children with
Severe Disabilities for School Year 20XX-20XX,” Continuation Sheet.

8. EFFECTIVE DATE
This Instruction is effective immediately.

Enclosures - 2
E1. References, continued
E2. Definitions

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DoDI 1342.18, February 6, 2006

E1. ENCLOSURE 1
REFERENCES, continued

(e)
(f)
(g)
(h)
(i)
(j)
(k)

Section 7713 of title 20, United States Code
Section 1437 of title 42, United States Code
Section 11411 of title 42, United States Code
Section 4101 of title 25, United States Code
Section 1414(d) of title 20, United States Code
Section 403(1)(A) of the Act of September 30, 1950 (Public Law 874, 81st Congress)
Section 101 of title 37, United States Code

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ENCLOSURE 1

DoDI 1342.18, February 6, 2006

E2. ENCLOSURE 2
DEFINITIONS

E2.1.1. Average Daily Attendance (ADA). The aggregate number of days in attendance of
all students during a school year divided by the number of days school is in session during that
year.
E2.1.2. Average Per Pupil Expenditure (APPE). In the case of a State or of the United
States:
E2.1.2.1. Without regard to the source of funds:
E2.1.2.1.1. The aggregate current expenditures, during the third fiscal year preceding
the fiscal year for which the determination is made (or, if satisfactory data for that year are not
available, during the most recent preceding fiscal year for which satisfactory data are available)
of all LEAs in the State or, in the case of the United States, for all States, plus:
E2.1.2.1.2. Any direct current expenditures by the State for the operation of those
LEAs; divided by:
E2.1.2.1.3. The aggregate number of children in ADA to whom those LEAs provided
free public education during the preceding year.
E2.1.2.2. Figures used for the national and State APPE shall be obtained from data
provided by ED.
E2.1.3. Children with Disabilities.
E2.1.3.1. Children with mental retardation, hearing impairments including deafness,
speech, or language impairments, visual impairment including blindness, serious emotional
disturbance, orthopedic impairments, autism, traumatic brain injury, other health impairments, or
specific learning disabilities; and who, by reason thereof, need special education and related
services.
E2.1.3.2. The term “children with disabilities” for children aged 3 through 9 may, at the
discretion of the State and the LEA, include a child experiencing developmental delays, as
defined by the State and as measured by appropriate diagnostic instruments and procedures, in
one or more of the following areas: physical development, cognitive development,
communication development, social or emotional development, or adaptive development; and
who, by reason thereof, need special education and related services.

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ENCLOSURE 2

DoDI 1342.18, February 6, 2006

E2.1.4. Children with Severe Disabilities. Children with disabilities who because of the
intensity of their physical, mental, or emotional problems need highly specialized education,
social, psychological, and medical services in order to maximize their full potential for useful
and meaningful participation in society and for self-fulfillment. The term includes those children
with disabilities with severe emotional disturbance (including schizophrenia), autism, severe and
profound mental retardation, and those who have two or more serious disabilities such as deafblindness, mental retardation and blindness, and cerebral palsy and deafness.
E2.1.5. Federal Property, as defined in Section 7713 of title 20, United States Code
(reference (e)).
E2.1.5.1. In General. Except as provided in subparagraphs E.1.1.5.2. through E.1.1.5.6.,
the term “Federal property” means real property that is not subject to taxation by any State or
any political subdivision of a State due to Federal agreement, law, or policy, and:
E2.1.5.1.1. Owned by the United States or leased by the United States from another
entity.
E2.1.5.1.2. Held in trust by the United States for individual Indians or Indian tribes
or held by individual Indians or Indian tribes subject to restrictions on alienation imposed by the
United States.
E2.1.5.1.2.1. Conveyed at any time under the Alaska Native Claims Settlement
Act to a Native individual, Native group, or village or regional corporation.
E2.1.5.1.2.2. Public land owned by the United States that is designated for the
sole use and benefit of individual Indians or Indian tribes; or
E2.1.5.1.2.3. Used for low-rent housing, as described in subparagraph E1.1.5.1.3
below, or that is located on land described in subparagraphs E1.1.5.2.1 through E1.1.5.2.2 above,
or on land that met one of those descriptions immediately before such property’s use for such
housing;
E2.1.5.1.3. Part of a low-rent housing project assisted under the United States
Housing Act of 1937 (reference (f)).
E2.1.5.1.3.1. Used to provide housing for homeless children at closed military
installations according to section 501 of the Stewart B. McKinney Homeless Assistance Act
(reference (g)); or
E2.1.5.1.3.2. Used for affordable housing assisted under the Native American
Housing Assistance and Self-Determination Act of 1996 (reference (h)); or
E2.1.5.1.3.3. Owned by a foreign government or by an international organization.
ENCLOSURE 2

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DoDI 1342.18, February 6, 2006

E2.1.5.2. Schools Providing Flight Training to Members of the Air Force. The term
“Federal property” includes any school providing flight training to members of the Air Force
under contract with the Air Force at an airport owned by a State or political subdivision of a
State, so long as it is not subject to taxation by any State or any political subdivision of a State,
and whether or not that tax exemption is due to Federal agreement, law, or policy.
E2.1.5.3. Non-Federal Easements, Leases, Licenses, Permits, Improvements, and Certain
Other Real Property. The term “Federal property” includes, whether or not subject to taxation
by a state or political subdivision of a state:
E2.1.5.3.1. Any non-Federal easement, lease, license, permit, or other such interest
in Federal property as described in this paragraph, but not including any non-Federal fee-simple
interest.
E2.1.5.3.2. Any improvement on Federal property as otherwise described in this
paragraph; and
E2.1.5.3.3. Real property that, immediately before its sale or transfer to a nonFederal party, was owned by the United States and qualified as Federal property, but only for 1
year beyond the end of the fiscal year of such sale or transfer.
E2.1.5.4. Certain Postal Service Property and Pipelines and Utility Lines. The term
“Federal property” does not include:
E2.1.5.4.1. Any real property under the jurisdiction of the United States Postal
Service that is used primarily for the provision of postal services; or
E2.1.5.4.2. Pipelines and utility lines.
E2.1.5.5. Property Regarding Which State or Local Tax Revenues May Not Be
Expended, Allocated, or Available for Free Public Education. “Federal property” does not
include any property on which children reside and that is otherwise described in this paragraph
if:
E2.1.5.5.1. No tax revenues of the State or of any political subdivision of the State
may be expended for the free public education of children who reside on that Federal property;
or
E2.1.5.5.2. No tax revenues of the State are allocated or available for the free public
education of such children.
E2.1.5.6. Property Located in the State of Oklahoma Owned By Indian Housing
Authority for Low-Income Housing. The term “Federal property” includes any real property
located in the State of Oklahoma that is owned by an Indian housing authority and used for lowENCLOSURE 2

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DoDI 1342.18, February 6, 2006

income housing (including housing assisted under or authorized by Section 1414(d) of title 20,
United States Code (reference (i)); and at any time:
E2.1.5.6.1. Was designated by treaty as tribal land; or
E2.1.5.6.2. Satisfied the definition of Federal property under section 403(1)(A) of the
Act of September 30, 1950 (Public Law 874, 81st Congress) (reference (j)) (as such Act was in
effect on the day preceding the date of enactment of the Improving America’s Schools Act of
1994).
E2.1.6. Free Appropriate Public Education. Special education and related services provided
at public expense, under public supervision and direction, and without charge that meet the
standards of the State educational agency; include an appropriate preschool, elementary, or
secondary education in the State involved; and are provided in conformity with the
individualized education program required under reference (i).
E2.1.7. Free Public Education. Education that is provided at public expense, under public
supervision and direction, and without tuition charge, as elementary or secondary education, as
determined under applicable State law. The term does not include any education beyond grade
12.
E2.1.8. Local Educational Agency (LEA). A board of education or other legally constituted
local school authority having administrative control and direction of free public elementary and
secondary education through grade 12, in a county, township, independent school district, or
other school district. It also includes any State agency that directly operates and maintains
facilities for providing free public education.
E2.1.9. Military Dependent Child. For purposes of reference (c), a dependent child who:
E2.1.9.1. Resides on eligible Federal property with a parent who is an official of, and
accredited by, a foreign government and is a military foreign officer; or
E2.1.9.2. Resides on eligible Federal property and has a parent on active duty in the
uniformed services, as defined in Section 101 of title 37, United States Code (reference (k)); or
E2.1.9.3. Has a parent on active duty in the uniformed services but does not reside on
Federal property; or
E2.1.9.4. Has a parent who is an official of, and has been accredited by, a foreign
government and is a foreign military officer but does not reside on eligible Federal property.
E2.1.10. Military Dependent Student. For purposes of reference (b), a student that is a
dependent child of a member of the Armed Forces or a dependent child of a civilian employee of
the Department of Defense.

ENCLOSURE 2

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