Alien Education Impact Aid Act of 1981

Alien Education Impact Aid of 1981 - Title I: General Provisions - Defines the terms used in this Act, including the term "alien children" which is defined to mean undocumented aliens to whom State or local educational agencies must provide educational services under Federal court order.

Authorizes lump-sum appropriations for fiscal years 1982 through 1984 for State educational programs and administrative costs (up to one percent) under this Act. Provides that such entitlements shall be ratably reduced if sufficient funds are not available. Authorizes up to one percent of such funds for Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. Authorizes the Secretary of Education to withhold funds from State educational agencies that fail to meet the requirements of this Act. Sets forth the procedures to be followed in such a situation.

Title II: General Assistance for Local Educational Agencies - Directs the Secretary to make payments to State educational agencies for fiscal years 1982 through 1984 for assistance in providing basic education for alien children. States that such payments shall be $450 for each such child enrolled in public elementary and secondary schools. Sets forth State application requirements. Requires the Secretary to give notice and opportunity for a hearing before final disapproval of an application.

Title III: Special Impact Assistance for Substantial Increases in Attendance of Alien Children - Directs the Secretary to make payments to State educational agencies for fiscal years 1982 through 1984 for supplementary public education costs for alien children in public and private elementary and secondary schools in eligible local educational agencies (based on the number of such children in their jurisdiction). Sets forth formulas for determining the amounts of such payments.

Reduces the amount of such payment by the amount of a grant to the State educational agency under the Refugee Education Assistance Act of 1980.

Includes within such supplementary services, English language instruction, bilingual education services, special materials and supplies, additional basic instructional services, and inservice training. Sets forth State application requirements. Requires a State educational agency to give notice and an opportunity for a hearing before final disapproval of a local educational agency's application for such funds.