To amend the impact aid program under section 8003 of the Elementary and Secondary Education Act of 1965 to include children who are citizens of the freely associated states in the computation of the amount of basic support payments to local educational agencies under the program.

Amends the Elementary and Secondary Education Act of 1965 to direct the Secretary of Education, in computing the amount of basic support payments to local educational agencies under the impact aid program, to consider children who are citizens of the freely associated states (Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau).