To amend the impact aid program under the Elementary and Secondary Education Act of 1965 to clarify the formula used to compute payments to local educational agencies with respect to eligible federally connected children.

Amends the Elementary and Secondary Education Act of 1965 (ESEA) to revise impact aid program requirements for payments to local educational agencies (LEAs) with respect to eligible federally-connected children. Provides, where there are insufficient funds to provide full amounts of such payments to all eligible LEAs, a formula by which amounts in excess of 150 percent of a threshold amount for some LEAs are to be distributed to other LEAs that have not received their full amounts.