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34 CFR § 222.66 - How does a local educational agency lose and resume eligibility under section 8003(b)(2)?

---
identifier: "/us/cfr/t34/s222.66"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 222.66 - How does a local educational agency lose and resume eligibility under section 8003(b)(2)?"
title_number: 34
title_name: "Education"
section_number: "222.66"
section_name: "How does a local educational agency lose and resume eligibility under section 8003(b)(2)?"
chapter_name: "OFFICE OF ELEMENTARY AND SECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "222"
part_name: "IMPACT AID PROGRAMS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted."
regulatory_source: "60 FR 50778, Sept. 29, 1995, unless otherwise noted."
cfr_part: "222"
---

# 222.66 How does a local educational agency lose and resume eligibility under section 8003(b)(2)?

(a) A continuing heavily impacted LEA that fails to meet the eligibility requirements in § 222.63 in any fiscal year or a new heavily impacted LEA that received a section 8003(b)(2) payment but then fails to meet the eligibility requirements in § 222.64 will still receive a heavily impacted payment in the first year of ineligibility, based on the number of children in ADA that would be counted for that application if the LEA were eligible.

(b)(1) A continuing heavily impacted LEA may resume eligibility for a heavily impacted payment if it applies in the fiscal year preceding the year for which it seeks eligibility and it meets the eligibility requirements in § 222.63 for both fiscal years.

(2) In the first fiscal year that a continuing heavily impacted LEA qualifies to resume eligibility, it cannot receive a heavily impacted payment but instead will receive a basic support payment under section 8003(b)(1) for that year.

****CONTINUING LEA

Continuing LEAs

|  | FFY 1 | FFY 2 | FFY 3 | FFY 4 | FFY 5 |
| --- | --- | --- | --- | --- | --- |
| 8003(b)(2) Eligibility |  |  |  |  |  |
| Payment Type | (b)(2) | (b)(2) | (b)(2) Hold Harmless | (b)(1) | (b)(2) |

(c) A new heavily impacted LEA may resume eligibility for a heavily impacted payment if it meets the eligibility requirements in § 222.64 for the fiscal year for which it seeks a payment.

****NEW LEA

New LEAs

|  | FFY 1 | FFY 2 | FFY 3 | FFY 4 | FFY 5 |
| --- | --- | --- | --- | --- | --- |
| 8003(b)(2) Eligibility |  |  |  |  |  |
| Payment Type | (b)(1) | (b)(2) | (b)(2) Hold Harmless | (b)(2) | (b)(2) |

(Authority: 20 U.S.C. 7703(b)(2))