A local educational agency (LEA) is generally eligible for section 7002 assistance if it meets the following basic requirements:

  1. The United States has acquired ownership of real property within the school district since 1938.
  2. Such property was not acquired by exchange for other Federal property that the Federal Government owned before 1939, or
  3. The assessed valuation of such property represented 10 percent or more of the total assessed valuation of all real property in the LEA at the time or times of Federal acquisition.

An LEA may base its eligibility on a former district contained within its boundaries.

The law provides a special exception for certain LEAs that meet the following criteria:

The LEA contains between 20,000 and 60,000 acres of land that has been acquired by the U. S. Forest Service between 1915 and 1990 as demonstrated by U.S. Forest Service records, and the LEA serves a county chartered by State law in 1875 or 1890.