Sponsors (97)
Introduced February 4, 2026 by Robert C. Scott · Last progress February 4, 2026
The bill directs substantial federal funding and financing tools to modernize and make school buildings healthier and more resilient—benefiting students, staff, and local economies—but does so at significant federal cost and with matching, compliance, and distribution rules that could strain state/local budgets and disadvantage lower‑capacity districts.
Students in high‑need districts and their schools will receive large, dedicated federal grants for long‑term facility repairs and upgrades (new $20B/year facilities program plus related funding streams), enabling major renovations from FY2027–FY2031.
Students, teachers, and staff will benefit from substantially improved health and safety in school buildings through removal of lead/PFAS/mold, upgraded HVAC/indoor air systems, and targeted hazard remediation.
Local school districts gain renewed financing tools—revived tax‑credit bond rules, an annual $400M allocation, and relaxed eligibility requirements—making it easier and cheaper for LEAs to fund construction, retrofits, and energy projects.
All taxpayers face materially higher federal outlays and potential increases to the deficit from the large appropriations and revived tax‑credit bond credits and issuer payments.
State and local governments (and ultimately local taxpayers) must provide non‑Federal matches and meet maintenance/assurance requirements (e.g., 10% match, 90% maintenance assurances, and up to 40% matching for some remediation), which could strain budgets and delay projects.
Schools, LEAs, and state agencies will face substantial new administrative, reporting, and compliance burdens (inventories, master plans, technical studies, annual Treasury reporting, application requirements, inspections) that may overwhelm small districts.
Based on analysis of 14 sections of legislative text.
Creates federal grants and tax-credit bond authority to fund construction, repairs, modernization, health/safety upgrades, and targeted foundation repairs for public school facilities.
Provides federal grant and tax-credit authority to help states, local school districts, Bureau-funded schools, and outlying areas repair, modernize, electrify, and expand public school facilities. Grants run FY2027–FY2031, with set reservations for outlying areas and Bureau-funded schools, requirements for State plans or assurances tied to Title I shares, and funding and program details for eligible facility activities, targeted pyrrhotite-foundation repairs, and revived tax-credit bonds to finance school construction. Also requires federal studies and oversight (GAO and the Institute of Education Sciences) on school building conditions and project outcomes, temporarily increases impact-aid construction funding for five years, and sets program rules like project eligibility, allowable uses (including health, safety, ADA accessibility, decarbonization, and lead/PFAS remediation), matching and timing requirements, and labor standards for bond-funded projects.