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Impact Aid & the Military Student Identifier

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Watch the Interview!

Impact Aid and the Military Student Identifier were the focus of a 2021 interview conducted by Partners in PROMISE (PiP). The interview featured Jennifer Barnhill, PiP’s former COO and lead researcher. She interviewed Josephine Amato of the Military-Kids Special Needs Alliance in 2021. In addition to being a member of the EFMP Coalition, Josephine continues to be an advocate and researcher, and her knowledge of Impact Aid is unparalleled. This interview is as important today as it was in 2021.

Why Do School Districts Need to Know Your Military Status?

Do you wonder why you are asked about your military status when your child starts a new school? The answer is twofold: one is to discover the impact of military service on the education of military children through the Military Student Identifier (MSI). The other is so schools can collect Impact Aid. While these are two separate programs, they are linked in a disjointed way. Read the following article by Jennifer Barnhill, originally published via Military Spouse Magazine, to learn more.

What Is the Military Student Identifier?

The MSI was a datapoint established as part of the Every Student Succeeds Act (ESSA) of 2015. The purpose of this act was to replace and update the No Child Left Behind Act (NCLB), which was signed into law in 2002. The stated purpose of ESSA is “to provide all children significant opportunity to receive a fair, equitable, and high-quality education, and to close educational achievement gaps.” This starts by identifying students from vulnerable segments of the population. Military children were identified due to their struggles with disrupted learning and social-emotional struggles as a result of frequent moves.

How the Military Student Identifier Data Is Collected

The MSI relies on self-reporting. Each year, military-connected families voluntarily disclose their military status to their child’s school. The stated purpose of the MSI is to “provide local educators with quality, actionable data concerning their military-connected students.”

Despite this intent, there are few comprehensive state-level MSI reports. One contributing factor may be that the Nation’s Report Card (NAEP), which tracks student achievement, focuses solely on state-level public school data. Because Department of Defense Education Activity (DoDEA) schools are federally operated and not part of state systems, the students enrolled in these schools are not included in state-level NAEP breakdowns.

Why Military-Connected Data Is Often Missing

Federal, state, and local “report cards” generally highlight student outcomes in areas such as reading, math, and science, while also breaking down data by demographics, including gender, race, and socioeconomic status. However, military student data is often missing or inconsistently reported.

One reason is that these report cards are non-regulatory, meaning states aren’t required to follow a standardized formula for collecting or publishing data. This results in significant inconsistencies between states and districts, leaving gaps in what’s known about military student performance.

Expert Insight

“The data from the military identifier is not being used in the manner it is legally required to be used,” said education advocate Josephine Amato. She noted that many states alternate which grades and years they collect data, meaning some students may never appear in a reported dataset due to frequent Permanent Change of Station (PCS) moves.

Even with these gaps, the MSI remains an important tool. If consistently collected and reported, this data could help close achievement gaps, guide funding decisions, and ensure schools are better equipped to meet the needs of military families.

Image of MSI Federal Card via MCEC: https://www.militarychild.org/upload/files/resources/FAQs_on_MSI.pdf

What Is Impact Aid?

Impact Aid funding is applied for when a school is informed that a student is military-connected. These federal funds are available to schools serving military-connected students, with higher amounts allocated for those with special education needs.

Four levels of Impact Aid are paid for military-connected children:

  • Payments for federal property (Section 7002)
  • Basic support payments: help meet the academic standards (Payments for Federally Connected Children — Section 7003)
  • Students with disabilities (Section 7003(d))
  • Construction (Section 7007)

Impact Aid is designed to provide extra funding to local schools to compensate for lost property tax revenue. While this may be an accurate summary, it omits the original purpose of the law, which also intends funds to be allocated “to help such children meet the same challenging state academic standards.” 

This stated purpose cements the relationship between MSI data and funding. According to Amato, school districts “are supposed to be looking where the kids are [academically] and implementing the Impact Aid funds to see if extra supports are needed.” However, it is unclear how Impact Aid is spent, as funding for this program is not tracked, like MSI. 

Data and Funding Benefit Military Kids

When your school receives Impact Aid funding and understands its population, everyone wins. Districts in Navy towns, such as San Diego, use this funding to support transition programming, counseling services, extracurricular clubs, special education supports, and other initiatives. These programs help put military students on a level playing field with their civilian counterparts.

Find Out For Yourself

Just because a school has military-connected students doesn’t mean it collects Impact Aid funding or utilizes the MSI. Until the legally required reporting of military student data is the gold standard, accountability falls to individuals. To determine if your school receives Impact Aid, please visit the National Association of Federally Impacted Schools.

Want to know more about how military children historically perform in your district? Request a copy of the MSI data from your local department of education.

*Updated 2 September 2025

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