A bill to amend the act of September 30, 1950 (Public Law 874, 81st Congress) to provide for the phasing out of certain entitlements of local educational agencies based upon the number of children of persons who reside or work on Federal property.

Provides that Federal entitlements to local education agencies based on the number of people who reside or work on Federal property shall be phased out after September 30, 1978.

States that the U.S. Commissioner of Education shall, beginning with fiscal year 1976 and ending with fiscal year 1978, reduce by 25, 50, and 75 percent respectively the number of children counted for entitlements with respect to any local educational agencies.