centum instead of 3 per centum (and those provisions of such paragraph (1) which relate to the lowering of the percentage requirement shall not apply); and

(B) in determining the amount which such agency is entitled to receive under subsection (a) or (b), the agency shall be entitled to receive payment with respect to only so many of the number of children whose attendance serves as the basis for eligibility under such subsection, as exceeds 3 per centum of the number of all children in average daily attendance at the schools of such agency during the fiscal year for which payment is to be made.

ADDITIONAL PAYMENTS DURING PERIOD IMMEDIATELY FOLLOWING IMPACT

(e) Where

(1) a local educational agency is entitled under subsection (a) or (b) to receive a payment for any fiscal year with respect to the education of a child; and

(2) under State law, the eligibility of such agency for State aid with respect to the free public education of such child is determined on a basis no less favorable to such agency than the basis used in determining the eligibility of local educational agencies for State aid with respect to the free public education of other children in the State; and

(3) such agency is not yet eligible to receive for such child part or all of such State aid,

the payment under subsection (a) or (b), as the case may be, shall be increased by an amount equal to the amount of State aid for which such agency is not yet eligible.

ADJUSTMENT FOR CERTAIN DECREASES IN FEDERAL ACTIVITIES

(f) Whenever the Commissioner determines that

(1) a local educational agency has made preparations to provide during a fiscal year free public education to a certain number of children to whom subsection (a) or (b) applies; and

(2) such number has been substantially reduced by reason of a decrease in or cessation of Federal activities,

the amount to which such agency is otherwise entitled under this section for such year shall be increased to the amount to which, in the judgment of the Commissioner, such agency would have been entitled but for such decrease in or cessation of Federal activities, minus any reduction in current expenditures for such year which the Commissioner determines that such agency has effected, or reasonably should have effected, by reason of such decrease in or cessation of Federal activities.

CERTAIN FEDERAL CONTRIBUTIONS TO BE DEDUCTED

(g) In determining the total amount which a local educational agency is entitled to receive under this section for a fiscal year, the Commissioner shall deduct (1) such amount as he determines such agency derived from other Federal payments (as defined in section 2 (b) (1)) and had available in such year for current expenditures (but only to the extent such payments are not deducted under the last

sentence of section 2 (a)), and (2) such amount as he determines to be the value of transportation and of custodial and other maintenance services furnished such agency by the Federal Government during such year.

SUDDEN AND SUBSTANTIAL INCREASES IN ATTENDANCE

INCREASES HEREAFTER OCCURRING

SEC. 4. (a) If the Commissioner determines for the fiscal year beginning July 1, 1950, or for any of the three succeeding fiscal years

(1) that, as the result of activities of the United States (carried on either directly or through a contractor), an increase in the number of children in average daily attendance at the schools of any local educational agency has occurred in such fiscal year, which increase so resulting from activities of the United States is equal to at least 10 per centum of the number of all children in average daily attendance at the schools of such agency during the preceding three-year period; and

(2) that such activities of the United States have placed on such agency a substantial and continuing financial burden; and

(3) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance but is unable to secure sufficient funds to meet the increased educational costs involved,

then such agency shall be entitled to receive for the fiscal year for which the determination is made, and for each of the two succeeding fiscal years (but in no event for any fiscal year ending after June 30, 1954), an amount equal to the product of

(A) the number of children which the Commissioner determines to be the increase in average daily attendance, so resulting from activities of the United States, in the fiscal year for which payment is to be made; and

(B) the amount which the Commissioner determines to be the current expenditures per child necessary to provide free public education to such additional children during such year, minus the amount which the Commissioner determines to be available from Federal, State, and local sources for such purpose (not counting as available for such purpose either payments under this Act, or funds from local sources required to meet current expenditures necessary to provide free public education to other children). The number of children which the Commissioner determines under clause (A) to be the increase in average daily attendance for any fiscal year shall not exceed the number of all children in average daily attendance at the schools of such agency during such year, minus the number of all children in average daily attendance at the schools of such agency during the preceding three-year period. The determination under clause (B) shall be made by the Commissioner after considering the current expenditures per child in providing free public education in those school districts within the State which, in the judgment of the Commissioner, are most nearly comparable to the school district of the local educational agency for which the computation is being made.

INCREASES HERETOFORE OCCURRING

(b) (1) If the Commissioner determines in any fiscal year ending before July 1, 1954,

(A) that, as the result of activities of the United States (carried on either directly or through a contractor), an increase in the number of children in average daily attendance at the schools of any local educational agency has occurred after June 30, 1939, and before July 1, 1950; and

(B) that the portion of such increase so resulting from activities of the United States which still exists in such fiscal year amounts to not less than 25 per centum (or to not less than 15 per centum where, in the judgment of the Commissioner, exceptional circumstances exist which would make the application of the 25 per centum condition of entitlement inequitable and would defeat the purposes of this Act) of the number of all children in average daily attendance at the schools of such agency during the fiscal year ending June 30, 1939; and

(C) that such activities of the United States have placed on such agency a substantial and continuing financial burden; and (D) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance but is unable to secure sufficient funds to meet the increased educational costs involved,

then such agency shall be entitled to receive for the fiscal year in which the determination is made, and for each succeeding fiscal year ending before July 1, 1954, an amount determined as follows: For the fiscal year ending June 30, 1951, 100 per centum of the product determined as provided in paragraph (2); for the fiscal year ending June 30, 1952, 75 per centum of such product; for the fiscal year ending June 30, 1953, 50 per centum of such product; and for the fiscal year ending June 30, 1954, 25 per centum of such product.

(2) The product referred to in paragraph (1) for a fiscal year shall be an amount equal to―

(A) the number of children which the Commissioner determines to be the increase in average daily attendance at the schools of such agency, so resulting from activities of the United States, which still exists in such fiscal year (determined as provided in clauses (A) and (B) of paragraph (1)); multiplied by

(B) the amount which the Commissioner determines to be the current expenditures per child necessary to provide free public education to such additional children during such year, minus the amount which the Commissioner determines to be available from Federal, State, and local sources for such purpose (not counting as available for such purpose either payments under this Act, or funds from local sources required to meet current expenditures necessary to provide free public education to other children). The number of children which the Commissioner determines under clause (A) to be the increase in average daily attendance which still exists in any fiscal year shall not exceed the number of all children in average daily attendance at the schools of such agency during such year, minus the number of all children in average daily attendance at the schools of such agency during the fiscal year ending June 30, 1939. The determination under clause (B) shall be made by the Com

missioner after considering the current expenditures per child in providing free public education in those school districts within the State which, in the judgment of the Commissioner, are most nearly comparable to the school district of the local educational agency for which the computation is being made.

CERTAIN CHILDREN NOT TO BE COUNTED

(c) In determining under this section (1) whether there has been an increase in attendance in any fiscal year and whether any increase in attendance still exists in any fiscal year, and (2) the number of children with respect to whom payment is to be made for any fiscal year, the Commissioner shall not count

(A) children with respect to whom a local educational agency is, or upon application would be, entitled to receive any payment under subsection (a) or (b) of section 3 for such fiscal year, and (B) children whose attendance is attributable to activities of the United States carried on in connection with real property which has been excluded from the definition of Federal property by the last sentence of paragraph (1) of section 9.

LIMITATIONS ON ELIGIBILITY AND PAYMENT

(d) Notwithstanding the preceding provisions of this section, where the average daily attendance at the schools of any local educational agency during the fiscal year ending June 30, 1939, exceeded 35,000—

(1) such agency's percentage requirement for eligibility under subsection (a) shall be 15 per centum instead of 10 per centum, and its percentage requirement for eligibility under subsection (b) shall be 30 per centum instead of 25 per centum (and those provisions of subsection (b) (1) (B) which relate to the lowering of the percentage requirement shall not apply); and

(2) in determining the amount which such agency is entitled to receive under subsection (a) or (b), the agency shall be entitled to receive payment with respect to only so many of the number of children for whom the agency would otherwise be entitled to receive payment under such subsection, as exceeds (A) in the case of subsection (a), 10 per centum of the number of all children in average daily attendance at the schools of such agency during the fiscal year for which payment is to be made, or (B) in the case of subsection (b), 25 per centum of all children so in average daily attendance.

CONSULTATION WITH STATE AND LOCAL AUTHORITIES

(e) All determinations of the Commissioner under this section shall be made only after consultation with the State educational agency and the local educational agency.

METHOD OF MAKING PAYMENTS

APPLICATION

SEC. 5. (a) No local educational agency shall be entitled to any payment under section 2, 3, or 4 of this Act for any fiscal year except upon application therefor, submitted through the State educational

agency and filed in accordance with regulations of the Commissioner, which application gives adequate assurance that the local educational agency will submit such reports as the Commissioner may reasonably require to determine the amount to which such agency is entitled under this Act.

CERTIFICATION AND PAYMENT

(b) The Commissioner shall, for each calendar quarter, certify to the Secretary of the Treasury for payment to each local educational agency, either in advance or by way of reimbursement, the amount which the Commissioner estimates such agency is entitled to receive under this Act for such quarter. The amount so certified for any quarter shall be reduced or increased, as the case may be, by any sum by which he finds that the amount paid to the agency under this Act for any prior quarter was greater or less than the amount which should have been paid to it for such prior quarter. Upon receipt of such certification, the Secretary of the Treasury shall, prior to audit or settlement by the General Accounting Office, pay to the local educational agency in accordance with such certification.

ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS

(c) If the funds appropriated for a fiscal year for making the payments provided in this Act are not sufficient to pay in full the total amounts to which all local educational agencies are entitled, the Commissioner shall reduce the amounts which he certifies under subsection (b) for such year for payment to each local educational agency by the percentage by which the funds so appropriated are less than the total necessary to pay to such agencies the full amount to which they are entitled under this Act.

CHILDREN FOR WHOM LOCAL AGENCIES ARE UNABLE TO PROVIDE EDUCATION

SEC. 6. In the case of children who reside on Federal property

(1) if no tax revenues of the State or any political subdivision thereof may be expended for the free public education of such children; or

(2) if it is the judgment of the Commissioner, after he has consulted with the appropriate State educational agency, that no local educational agency is able to provide suitable free public education for such children,

the Commissioner shall make such arrangements (other than arrangements with respect to the acquisition of land, the erection of facilities, interest, or debt service) as may be necessary to provide free public education for such children. To the maximum extent practicable, such education shall be comparable to free public education provided for children in comparable communities in the State.

ADMINISTRATION

SEC. 7. (a) In the administration of this Act, no department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over the personnel, curriculum, or program of instruction of any school or school system of any local or State educational agency.