PAYMENTS RELATING TO FEDERAL PROPERTY.

SEC. 60006. PAYMENTS RELATING TO FEDERAL PROPERTY. Section 8002(i) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(i)) is amended to read as follows: “(i) Priority Payments.— “(1) In general.—Notwithstanding subsection (b)(1)(B), and for any fiscal year beginning with fiscal year 1997 for which the amount appropriated to carry out this section exceeds the amount so appropriated for fiscal year 1996— “(A) the Secretary shall first use the excess amount (not to exceed the amount equal to the difference of (i) the amount appropriated to carry out this section for fiscal year 1997, and (ii) the amount appropriated to carry out this section for fiscal year 1996) to increase the payment that would otherwise be made under this section to not more than 50 percent of the maximum amount determined under subsection (b) for any local educational agency described in paragraph (2); and “(B) the Secretary shall use the remainder of the excess amount to increase the payments to each eligible local educational agency under this section. “(2) Local educational agency described.—A local educational agency described in this paragraph is a local educational agency that— “(A) received a payment under this section for fiscal year 1996; “(B) serves a school district that contains all or a portion of a United States military academy; “(C) serves a school district in which the local tax assessor has certified that at least 60 percent of the real property is federally owned; and “(D) demonstrates to the satisfaction of the Secretary that such agency’s per-pupil revenue derived from local sources for current expenditures is not less than that revenue for the preceding fiscal year.”.