Public Law 81-874 is the Federal Act that authorizes assistance for current expenditures in areas affected by federal activities. Section 2 of the Act directs payment of an entitlement to Local Education Agencies (LEA) in whose school district the United States owns certain federal property. Section 3 provides an entitlement to an LEA based on numbers of federally-connected children attending the schools of the LEA.

The Act provides special rules regarding increased entitlements in connection with federally-connected handicapped children and children residing on Indian lands.

The Director of Categorical Programs is responsible for providing each school with a quantity of pre-printed census cards.

1. Distribution of the census cards will be made one day prior to the 40th school day -- the date on which the count must be taken.
2. Each school will receive a letter of instructions with their allotment of census cards as well as sufficient blank forms for recording the data required on children living in federally-sponsored, low-rent housing and the necessary forms for recording the information required on the students residing on Indian lands.
3. The correctly-executed census cards or forms must be returned to the Office of the Director of Categorical Programs no later than four weeks after the survey date for review and to insure that all schools have responded.

Legal Ref.: Public Law 81-874

NSBA/NEPN Classification: DEC

Revised: May 1995

Revised: April 1996

Revised: April 1997

Reviewed: January 1, 2001