Impact Aid is Federal funding provided directly to school districts to make up for lost tax revenues from federally owned property within their boundaries (i.e., military bases and Indian Reservations). These Title VII funds are managed through the US Department of Education. Impact Aid should not be considered extra funding, but funding that is provided to equalize districts who do not receive tax realated revenues like other districts receive.
Beware Name Change - Title VII vs Title VI
There have been changes in the title programs that can cause some confusion. So it's important to understand the historical changes and to double check that everyone is referring to the same program.
Prior to 2017, the Title VI grant of today - Indian, Native Hawaiian, and Alaska Native Education grant, had the roman numeral identification VII with the same heading - Indian, Native Hawaiian, and Alaska Native Education. This numbering changed to VI under the new ESSA law (Every Student Succeeds Act).
In other words, today's Title VI grant was previously known as Title VII, Indian, Native Hawaiian, and Alaska Native Education. However, after 2017 this grant became Title VI, with the same name.
To clarify further, Title VII now refers to Impact Aid funding.
It is beneficial for anyone working with these grants to double check when talking with stakeholders to make sure everyone is referring to the same grant.
About Impact Aid - National Association of Federally Impacted Schools
ADE School & Student Data Resources
US Department of Education - Impact Aid
Impact Aid Regulation - US Department of Education