Impact Aid Update Act of 2006 - Amends the Elementary and Secondary Education Act of 1965 to update the limitation on Impact Aid program special payments made to local educational agencies (LEAs) which serve school districts in which at least 60% of the real property is federally owned and there is a U.S. military academy.
Requires the Secretary of Education to make available a specified amount of FY2005 appropriations for vocational and adult education to increase the Impact Aid special payment to the LEA of Highland Falls, New York.