The Secretary issues these final regulations to implement a new Impact Aid discretionary construction grant program, which is authorized under section 8007(b) of the Elementary and Secondary Education Act (the Act), as amended by the No Child Left Behind Act of 2001. The program provides competitive grants for emergency repairs and modernization of school facilities to certain eligible school districts that receive Impact Aid funds. These final regulations incorporate statutory requirements and provide requirements for applying and qualifying for, as well as spending, the Federal funds provided under this program. These final regulations apply only to the fiscal year (FY) 2002 grant competition.