Section 2. (a) Except as otherwise provided in subsection (b), this compact shall apply to the children of:

(1) active duty members of the uniformed services;

(2) members or veterans of the uniformed services who are severely injured and medically discharged or retired for a period of 1 year after medical discharge or retirement; and

(3) members of the uniformed services who die on active duty or as a result of injuries sustained on active duty for a period of 1 year after death.

(b) This interstate compact shall only apply to local education agencies.

(c) This compact shall not apply to the children of:

(1) inactive members of the national guard and military reserves;

(2) members of the uniformed services now retired, except as provided in subsection (a);

(3) veterans of the uniformed services, except as provided in subsection (a); and

(4) other United States Department of Defense personnel and other federal agency civilian and contract employees not defined as active duty members of the uniformed services.