Public schools could receive building grants if Congress funds them

Congress would authorize $20 billion yearly for the main school building grant program. States would contribute 10% of their allocation, using nonfederal money unless annual program funding exceeds $7 billion. Federal money could not replace state funding. States must keep their share of building spending at least 90% of its prior five-year average, with hardship waivers allowed. Money provided under this authorization could remain available through fiscal year 2036.

Participating states would choose districts through grant competitions. Districts must receive Title I federal school aid, have high numbers or shares of students counted for that aid, and have limited ability to raise building money. Districts must prioritize schools with the highest shares of students eligible for free or reduced-price meals; high schools may use data from their feeder schools.

Federal tax credits would support borrowing for school projects. The national borrowing limit would be $10 billion in each of 2027, 2028, and 2029. Credits would be limited by the holder’s federal taxes, and bond interest would count as taxable income. Issuers must expect to spend all project money on allowed school uses within six years. They must repay bonds tied to unspent money within 90 days after that period ends. These bond provisions would apply to bonds issued on or after January 1, 2027.

Schools would follow purchasing rules and charter-school limits when using covered grants or bonds. These rules cover the main building grants, school infrastructure bonds, and qualified zone academy bonds. Funds could not support facilities of charter schools run or managed by for-profit entities. Charter rentals would also be excluded if the individual landlord, or someone with a financial stake in the for-profit landlord, helps manage or govern the school. Federal officials could waive purchasing rules for public-interest reasons, shortages, inadequate quality, or an overall project cost increase above 25%.

States would award grants for future school foundation repairs. Tests and inspections must show unsafe damage from pyrrhotite in concrete. An engineer must find the school structurally unsafe now or within five years. State and federal officials must approve applications. States must use nonfederal money for their share. The same project could not also receive a grant from the main school building program.