Public Law 81-874, enacted by Congress in 1950, allowed distribution of direct federal financial assistance to local public school districts serving children of parents who either lived or worked on tax-exempt federal property. The law, as subsequently amended, divides the affected children into Category A (students whose parents both reside on federal property and are federally employed in either a military or civilian capacity) and Category B (students whose parents either reside on, or are employed on, federal property, but not both). This study assessed the local economic effect of impact aid payments for Category B students through a comparison of federal 81-874 aid reimbursements and per pupil contributions made by property taxes generated in the four North Dakota school districts enrolling the largest number of Category B students. Data from the study are presented through a series of tables showing, for each district: (1) Category B federal reimbusements per student and percent of change since 1980; (2) impact aid, by district, by category; and (3) commercial property taxes raised locally for nonfederally connected students in 1985. Comparisons made from the data presented indicate that commercial property owners in the local school districts contribute amounts far in excess of the federal government's Category B reimbursements to local school districts. The study concludes with a recommendation that Congress appropriate additional funding in support of Category B students, to alleviate the burden on state and local financial resources. (TE)