A bill to provide for the gradual reduction in payments for certain types of children under the Impact Aid program of Public Law 874.

Provides for a gradual reduction in payments under the Impact Aid program for children residing on, or whose parents are employed on, Federal property.

Reduces such payments based on numbers of such children to four-fifths for fiscal year 1983 and gradually thereafter until reduction to zero for fiscal years beginning on or after October 1, 1987.

Specifies that such reductions shall not apply to any local educational agency with respect to which the number of such children determined for any such fiscal year amounts to more than one-fourth of the total number of children in average daily attendance at the public schools of such agency.