To amend title VIII of the Elementary and Secondary Education Act of 1965 regarding impact aid payments, and for other purposes.

Amends the Elementary and Secondary Education Act of 1965 regarding impact aid payments.

Provides hold-harmless payment amounts for impact-aid payments relating to Federal acquisition of real property. Provides that no eligible local educational agency shall receive less than 85 percent of the preceding year's amount in such a payment for any fiscal year. Provides for ratable reductions and increases in certain types of impact-aid payments in specified circumstances.

Revises provisions which authorize funding for heavily-impacted school districts, with respect to computation of payment, payments for eligible federally-connected children, and current year data. Directs the Secretary of Education, as a special rule for 1994 supplemental payments, not to consider any payment to a local educational agency by the Department of Defense that is available to such agency for current expenditures and used for capital expenses in determinations under specified Federal impact aid law.

Allows two specified school districts in South Dakota to claim eligibility as heavily-impacted districts for the current year, by allowing them to amend their applications for increased payments.