While Native American students in New Mexico are showing improvement in graduation rates, third-grade reading and math proficiency, they continue to perform well below their peers on state and national measures of achievement. As a result, a report released Monday makes several recommendations to help close the gap. They include asking the Legislature to reduce or eliminate the so-called Impact Aid credit from the state’s public education funding formula, freeing up the money for affected school districts to spend on evidence-based interventions. “If the Legislature were to remove the Impact Aid credit from the public education funding formula, Impact Aid districts could locally decide to spend the additional operational funding on added supports for facility needs, instruction, tribal collaboration activities, or tribal education departments,” the Legislative Finance Committee wrote in a progress report on the implementation of the Indian Education Act, which was passed in 2003. Federal Impact Aid compensates school districts and charter schools for the loss of property tax from tribal lands and other tax-exempt federal property within their boundaries.