Impact Aid provides financial assistance to school districts affected by federal activities. Because federal property is exempt from local property taxes, Impact Aid helps to replace the lost revenue that would otherwise be available to pay for educating children who live on Indian lands and/or whose parents work on federal property. Southwest Region School District receives funding for each child that lives on Indian lands. SWRSD applies for Impact Aid funding that provide general support to the educational programs throughout the district. Impact Aid funding is determined by the number of students that reside on eligible lands.