A bill to amend section 5(d) of Public Law 874-81st Congress to prevent taking into account Federal funds made available under that Act in the distribution of State educational funds.

Amends Federal law relating to financial assistance for local educational agencies in areas affected by Federal activity ("impact aid") to prohibit payments for the cost of State administration under specified provisions of the Elementary and Secondary Education Act of 1965 to any State which takes Federal impact aid funds into account in the distribution of State educational funds to local educational agencies.