Amends the Impact Aid program (which compensates local educational agencies [LEAs] for the financial burden of federal activities affecting their areas) of the Elementary and Secondary Education Act of 1965 to make certain LEAs eligible for emergency school repair grants and school modernization grants if they serve areas where at least 10% of the property is nontaxable due to the federal government's presence.
Prohibits the Secretary of Education from requiring: (1) those LEAs to serve areas where more than 10% of the property is nontaxable due to the federal government's presence, or (2) other LEAs (those currently eligible for such grants by reason of having a student enrollment at least 40% of which resides on Indian lands) to have a student enrollment more than 40% of which resides on Indian lands before being deemed eligible for such grants.