To amend Public Law 874, 81st Congress, to provide that eligible local educational agencies shall be entitled to receive certain payments under such Public Law, to allow the computation of payments under such law based on the amount of the per pupil expenditure for non-Federally-connected students that is derived from local sources, and for other purposes.

Amends Federal law relating to impact aid to provide that eligible local educational agencies shall be entitled to receive certain payments.

Provides that the computation of payment amounts shall be based on: (1) prior-year attendance; and (2) the actual or comparable local contribution rate. Eliminates certain adjustments for decreases in Federal activities and certain preliminary payments.