A bill to make adjustments to the method of determining eligibility for impact aid funds for heavily impacted local educational agencies, and for other purposes.

Amends the Elementary and Secondary Education Act of 1965 to revise impact aid provisions for certain heavily impacted local educational agencies (LEAs), under the program of payments for eligible federally connected children.

Requires that procedures under specified Federal regulations be applied in determining whether an LEA with an enrollment of less than 350 students has a per-pupil expenditure that is less than the average per-pupil expenditure of a comparable LEA in the same State.

Directs the Secretary of Education to deem the LEA serving the Bonesteel-Fairfax school district, 26-5, in Bonesteel, South Dakota, to be eligible in FY 2003 for a basic support payment for heavily impacted LEAs.

Requires an application filed by Central School District, Sequoyah County, Oklahoma, for such a payment for federally connected students for FY 2003, to be treated as timely and processed by the Secretary if it is received within 30 days after enactment of this Act.