Summary Chart of ARRA Funding and Tax Credit Bonds for School Modernization

Continuously updated information on sources of Recovery Act funding for school facilities from the U. S. Departments of Education, Treasury, Energy, Interior, Agriculture, Commerce, and more. Includes links to guidance documents and application forms.

View the chart

Recovery Act News

Oregon District Turns To Grants, Donations To Fund Construction Projects, Leveraging Stimulus Bonds
Statesman Journal, July 28, 2010

Wisconsin School District Will Benefit from Low Interest Rates and Stimulus Bonds
Watertown Daily Times, July 27, 2010

Carrollton, Georgia To Use Stimulus Bonds To Fund $8 Million School Renovations
Times-Georgian, July 23, 2010

$1 Million Stimulus Projects on Track at Jamestown, North Dakota Schools
Jamestown Sun, July 20, 2010

Changes Funded by Stimulus Bond Should Help Wisconsin School Save Energy
LaCross Tribune, July 15, 2010

Stimulus Bond Option Could Save Catawba County, North Carolina Money
Hickory Record, July 14, 2010

Kentucky School Districts Use Stimulus Dollars to Hire Energy Managers
Herald Leader, July 07, 2010

Missouri School District's Repairs Financed with Interest-free Bonds
Fulton Sun, July 02, 2010

School Construction Bonds Could Save a Wisconsin District Taxpayers $6 Million
WJFW.com, June 30, 2010

School Districts Get Interest-Free Stimulus Loans
Gazette, June 28, 2010

Green Bay, Wisconsin Schools to Save $3.3 Million in Bond Interest With Federal Programs
FOX11, June 22, 2010

Wisconsin School Districts Can Access $144 Million in No-interest Bonding Authority
State of Wisconsin , June 17, 2010

Massachusetts’s $150 Million Qualified School Construction Bonds Beat Build Americas
Business Week, June 16, 2010

Ohio Colleges Get Stimulus Funding for Energy Efficiency Projects
Business First, June 11, 2010

Governor Announces $4.5 Million to Fund 15 Solar Projects at New Mexico Schools
State of New Mexico, June 09, 2010

Federal Stimulus Grant Helps North Carolina Schools Install Energy Efficient Lighting
The Daily Herald , June 09, 2010

Recovery Act Funds Jewell School Lighting Project
Daily Astorian, June 07, 2010

Missouri School Districts Get Help with Construction Projects from Stimulus Bonds
Southeast Missourian, June 07, 2010

Carrollton, Georgia Schools to Use $8 Million Stimulus Bond for Construction Projects
Times-Georgian, June 06, 2010

Pennsylvania to Get $602 Million in Federal Stimulus for 101 School Construction and Energy Efficiency Projects
Pittsburgh Post-Gazette, June 04, 2010

California Schools to Cut 80% Electricity Costs with Solar Systems Funded by Stimulus
BrighterEnergy.org, June 01, 2010

Economic Stimulus Money to Help Rural Virginia School Systems
WSLS, May 28, 2010

Qualified School Construction Bonds to Provide Tennessee $126 Million for Construction and Renovation Projects
WDEF News, May 24, 2010

North Dakota School Referendum Passes, With Help From Stimulus Bonds
Inform, May 21, 2010

Michigan District's Taxpayers Get $12.9M Bond Break with QSCBs and BABs
Daily Press & Argus, May 17, 2010

Secretary Sebelius Announces $1 Billion in NIH Recovery Act Awards to Construct or Improve Biomedical Research Facilities
NIH News, May 14, 2010

Oklahoma Receives $12 Million Impact Aid School Construction Grants, Funded by Stimulus
Tulsa World, May 13, 2010

School on Yakama Reservation in Washington State Given Impact Aid Grant for Renovations
Yakima Herald-Republic, May 12, 2010

Construction Employment Edges Up as Stimulus Funds Begin to Reach Nonresidential Construction
US Glass News Network, May 10, 2010

$500 Million Build America Bonds for New Jersey School Construction
Bloomberg, May 10, 2010

Charlotte County, Florida to Rebuild Schools with Fed Funds
Herald-Tribune, May 06, 2010

Ohio school District Looks for Livable Levy Strategy To Take Advantage of QSCBs and BABs
Sandusky Register, May 03, 2010

Recovery Act to Help 4 Indian School Projects in Ariz., N.M., and S.D.
U.S. Department of the Interior, April 28, 2010

Treasury Offers Interim Tax-Credit Bond Guidance (QSCBs and QZABs)
Bond Buyer, April 27, 2010

L.A. Yields Beat Build America Amid School Bond Sales
Bloomberg Business Week, April 23, 2010

Stimulus-Funded Mobile Computer Lab in Texas
Dallas Morning News , April 21, 2010

A Lesson in Financing Finesse - Stimulus-Funded Bonding Boosts School Project
Fianance and Commerce, April 19, 2010

Los Angeles to Sell $290.2 Million in Qualified School Construction Bonds
Business Week, April 19, 2010

St. Johns,Michigan Public Schools Get Big Help from ARRA Funds
Lansing State Journal, April 16, 2010

Minnesota District Allocated Over $10 Million in Stimulus QZABs for Facilities Projects
Granite Falls News, April 15, 2010

New Jersey to Finance School Construction With $500 Million Build America Bonds
New Jersey Newsroom, April 15, 2010

Vermont Senator Announces Stimulus Funded Energy Efficiency Grant for Elementary School
Digger Digest, April 13, 2010

With Stimulus Bonds, Cincinnati, Ohio Schools Will Borrow Millions to Boost Energy Efficiency
Cincinnati Enquirer, April 12, 2010

Ohio School Bonds Get Help From Federal Stimulus Program
Columbus Dispatch, April 12, 2010

Charter School System Says $22.1 Million Stimulus Bond Plan Is a First in Texas
Business Week, April 07, 2010

May Election May Save Millions in Proposed Pine Tree, Texas Bond by Using Stimulus Bonds
KLTV, April 06, 2010

$81.57 Million in QSCB Bonding Authority Approved for Minnesota School Districts
ECM Publishers, April 03, 2010

Stimulus Funded School Energy Project First of its Kind in New Hampshire
The Citizen, April 03, 2010

QSCB Bond-Pooling Program Provides Low-Cost Financing for School Construction
District Administration, April 01, 2010

Guam Schools To Get $44.6 Million Stimulus Funds to Fix, Upgrade Campuses
Pacific Daily News, March 30, 2010

Jackson, Mississippi Metro Schools Eligible for Stimulus Bonds
Clarion Ledger, March 29, 2010

Vermont Towns, Schools Share Energy Grant Funding from Stimulus
Bennington Banner, March 29, 2010

Security Ugrades at Manitowoc, Wisconsin Public Schools; Funded by Stimulus
Herald Times, March 26, 2010

Boston Borrows for School Construction After Obama Approves Direct Subsidy for QSCBs
Business Week, March 25, 2010

Landmark School Construction & Jobs Bill Passes California Legislature; Authorizes use of QSCBs
California Chronicle, March 25, 2010

Zero-interest Construction Bonds Entice Pennsylvania Schools
Intelligencer Journal, March 20, 2010

West Virginia School Building Authority Takes Full Advantage Of Available Stimulus Funds
MetroNews, March 19, 2010

Treasury, Education Departments Release Qualified School Construction Bonds Allocations for 2010
The Bond Buyer, March 17, 2010

Recovery Act Program Provides $11 Billion to Build Schools, Create Jobs Across the Country
U.S. Department of the Treasury, March 17, 2010

Government Sets School Bonds, Congress Approves Rebates
Reuters, March 17, 2010

N.J. To Get $216M in Federal Stimulus Funds for School Construction
Star-Ledger, March 17, 2010

To Get Stimulus Tax Credits, Bank Cuts Interest for New Montana School Building
Missoulian, March 14, 2010

More Solar Panels for San Jose Schools With Federal Stimulus Bonds
Triplepundit, March 12, 2010

Grassley Decrying Bond Subsidies
Bond Buyer, March 08, 2010

House Bill Offers School Construction Bonds Boost
Bond Buyer, March 05, 2010

New York Announces $40 Million Recovery Act Funding to Improve Energy Efficiency in 118 Schools, Universities, and Colleges
Energy News, March 05, 2010

Guilford, North Carolina Schools Want in on Federal Stimulus Spending Fun
Carolina Journal, March 03, 2010

$1.5 Million Stimulus Bond Money Paying For North Carolina School HVAC Projects
The Record, March 02, 2010

Stimulus Grant to Pay for Schools’ Green Special Needs Playgrounds
Brewton Standard, March 01, 2010

Jobs Bill May Boost School Bond Sales, Bank of America Says
Business Week, February 26, 2010

QSCBs and QZABs in Senate Jobs Bill
Bond Buyer, February 25, 2010

Energy-Efficiency Loans With Stimulus Money Available to South Dakota Schools
Argus Leader, February 23, 2010

What the Senate Jobs Bill Means for Education (School Construction)
Ed Money Watch Blog, February 23, 2010

Blissfield, Michigan Schools Seeking $12 Million Upgrade in Bond Vote; Using Stimulus Bonds
Daily Telegram, February 21, 2010

Treasury Assistant Secretary, Tennessee Secretary of State Tout Benefits of Recovery Act School Construction Bonds
U.S. Department of the Treasury, February 19, 2010

L.A. Schools to Sell $1.75 Billion of Bonds for School Construction
Business Week, February 18, 2010

Edgar, Wisconsin Voters Say Yes to $7.6 Million School Construction Project; First Time Since 1994
Wasau Daily Herald, February 17, 2010

$10 Million Stimulus Grant to Install Solar Energy Panels on 90 Florida Schools That Serve as Emergency Shelters
Florida Today, February 17, 2010

Metro Detroit Schools Ask Voters to OK Funds for Upgrades to Take Advantage of Stimulus Bonds
Detroit News, February 15, 2010

A Move to 'BABify’ Programs
Bond Buyer, February 12, 2010

Draft Jobs Bill Would Treat Some Tax-Credit Bonds Like BABs
Bond Buyer, February 09, 2010

Small Oregon Schools Benefit From Stimulus Energy Grants
CBOnline, February 08, 2010

L.A. to Sell $1.75 Billion of Bonds to Fund School Construction
Business Week, February 08, 2010

Opinion: Project Funds Aplenty; None for Springfield, Illinois School Construction
State Journal-Register, February 07, 2010

Mississippi Schools Eye More Stimulus Bond Money
Hattiesburg American, February 06, 2010

Multiple Stimulus Aid Streams Flow to Ed Tech
Education Week , February 05, 2010

Mississippi Schools Eye More Federal Stimulus Bond Money
Hattiesburg American, February 05, 2010

Oregon School District Announces Sale of Qualified School Construction Bonds
Statesman Journal, February 04, 2010

Lexington, North Carolina Schools Working on Stimulus-Funded Projects
The-Dispatch, February 03, 2010

University of Minnesota, an Early BAB User, Goes Back for Seconds
Bond Buyer, February 02, 2010

SC Getting Millions in Federal Money to Replace Crumbling School Mentioned in '09 Obama Speech
Los Angeles Times/Associated Press, January 27, 2010

Charlotte County, Florida Schools to Borrow $60 Million with Qualified School Construction Bonds
Herald Tribune, January 27, 2010

Tax-Credit Debt Fades To BABs?
Bond Buyer, January 26, 2010

Qualified School Construction Bonds Get Build America Tax Treatment Under New Plan
Business Week, January 25, 2010

Major California School Construction and Jobs Bill Passes; Authorizes $773 Million QSCBs
California Chronicle, January 23, 2010

St. Charles Parish School Board OKs $10 Million in Qualified School Construction Bonds
Times-Picayune, January 21, 2010

Virginia Governor Kaine Announces Bonds for School Energy and Construction Projects
WHSV.com, January 15, 2010

Port Clinton Schools Eligible to Get $15M in Stimulus Bonds; More Than Anticipated, After Ohio Voters Defeated Local Issues in November
News Herald, January 13, 2010

Acton-Boxborough, Massachusetts Schools Harness Solar Energy; Funded by Stimulus
The Beacon, January 11, 2010

Philadelphia Area Districts Ponder Using $460 Million School Construction Bonds
Inquirer, January 09, 2010

NIST Awards $123 Million in Recovery Act Grants To Construct New Research Facilities
National Institute of Standards and Technology, January 08, 2010

North Carolina School Plan Stalled By Lack of Bank Interest in Buy QSCBs
Wilkes Journal-Patriot, January 08, 2010

New Bills May Block Tax-Credit Stripping; QZABs, QSCBs, and CREBs Targeted
Bond Buyer, January 07, 2010

Rural Arizona Schools to Get $5M for Solar Systems; Using Stimulus Funds
Phoenix Business Journal, January 07, 2010

Seize Moment, Advisor Tells School District; Take Advantage of ARRA Low Interest Bonds
Northwoods Weekend, January 05, 2010

Stimulus-Funded Renovations, Energy and Safety Upgrades Begin at Wisconsin School District
Herald Times, January 02, 2010

Legislative Language

THE ARRA

The President signed the American Recovery and Reinvestment Act of 2009 (ARRA) into law on February 17.

For an overview of stimulus funded education programs, see U.S. Department of Education's ARRA web page. For state allocations, see Recovery Act State Fact Sheets. To see states' applications for funding under the State Fiscal Stabilization Fund Program, see State Grants.

Information specific to school modernization and school construction tax credits is posted here as it becomes available.

DIVISION A - APPROPRIATIONS PROVISIONS

State Fiscal Stabilization Fund. Title XIV of the bill [pages 165-172] provides $53.6 billion for education by means of a "State Fiscal Stabilization Fund." Money is allocated to the states on the basis of their population and number of school age children [page 165, Sec. 14001(d)].

SCHOOL DISTRICTS' SHARE. The states receive a total of about $39.5 billion "for the support of elementary, secondary, and postsecondary education, and, as applicable, early childhood education programs and services" [pages 165 and 166, Sec. 14002(b)]. Funds are apportioned to local school districts according to their state's "primary elementary and secondary funding formulae" and to public institutions of higher learning in the amounts "needed to restore State support for such institutions."

School districts may use the funds they receive for "any activity authorized by the Elementary and Secondary Education Act of 1965, the Individuals with Disabilities Education Act, the Adult and Family Literacy Act, and the Carl D. Perkins Career and Technical Education Act, or for modernization, renovation, and repairs of public school facilities (including charter schools), which may include modernization, renovation, and repairs consistent with a recognized green building rating system."

STATES' SHARE. The states receive a total of about $8.8 billion "for public safety and other government services, which may include assistance for elementary and secondary education, and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system [page 166, Sec. 14002(b)]." The states appear to have wide discretion in distributing this money, making it difficult to predict how and on what it actually will be spent.

MODERNIZATION IS ONLY AN OPTION. Note that the bill allocates no money specifically for school modernization, and, while eligible for funding, modernization projects in some states may prove to be a low priority compared to other critical educational needs.

PROHIBITED USES. Modernization, renovation, and repair funds may not be used by school districts [page 167, Sec. 14003(b)] for (1) payment of maintenance costs; (2) stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; (3) purchase or upgrade of vehicles; and (4) improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities. (Note that this last provision precludes funding the conversion of an older school into an administration building, a common reuse.)

For the U.S. Department of Education's interpretation of the above provisions, see Section V [pages 34-38] of its April 2009 Guidance on the State Fiscal Stabilization Fund Program and its May 11, 2009 Modifications to Questions in the April Guidance on the State Fiscal Stabilization Fund Program (Note that the use of stabilization funds for new construction of primary and secondary schools [Subsection V-1,page 34] has been interpreted by the Department as allowable, but discouraged under ARRA. New construction of higher education facilities is not allowed.)

DEADLINES. Funds the states do not "award as subgrants or otherwise commit within two years of receiving such funds" will be reallocated by the Secretary of Education [page 165, Sec. 14001(f)]. According to Subsection III-D-16 [page 26] of Guidance on the State Fiscal Stabilization Fund Program, school districts must obligate modernization funds (that is, have them under contract) by September 30, 2011.

Energy Efficiency Programs. $3.2 billion is provided to the U.S. Department of Energy for its Energy Efficiency and Conservation Block Grant program, and $3.1 billion for its State Energy Program [page 24]. School energy efficiency projects are eligible for funding through both programs. See the DOE Recovery and Reinvestment webpage.

Bureau of Indian Affairs. $450 million is provided for BIA construction, maintenance, and repair activities [page 54], which include school construction, improvements, and repairs. See the BIA Recovery Act webpage.

Academic Research Facilities. $200 million is provided to the National Science Foundation for funding academic research facilities modernization [page 17]. $1 billion is provided to the National Institutes of Health for funding the construction, renovation, and repair of biomedical and behavioral research facilities at non-federal research institutions, including colleges and universities [page 61]. $180 million is provided to the National Institute of Standards and Technology for a competitive construction grant program for research science buildings [page 15].

Impact Aid. $100 million is provided for construction grants to Impact Aid school districts (generally, those serving students from government installations or Indian tribes). Forty percent of the funds go to formula grants, 60 percent to competitive grants for emergency repairs and school modernization [pages 67 and 75]. See Guidance: Impact Aid Section 8007 School Construction Funds.

Rural Communities. $130 million is provided to the Department of Agriculture for loans and grants for rural community facilities programs [page 4], a category that includes schools. The Department says over $1.1 billion is available "to develop essential community facilities in rural areas and towns of up to 20,000 in population;" see pages 2 and 3 of the USDA Recovery Act webpage.

DIVISION B - TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER PROVISIONS (also cited as the American Recovery and Reinvestment Tax Act of 2009)

School Construction Bonds. State and local governments may issue up to $22 billion in "Qualified School Construction Bonds" ($11 billion in 2009 and $11 billion in 2010), a new type of tax credit bond for "the construction, rehabilitation, or repair of a public school facility, or for the acquisition of land on which such a facility is to be constructed" [pages 241-243, Sec. 1521]. Tribal schools receive an additional $400 million of the bonds ($200 million in 2009 and $200 million in 2010). See the U.S. Treasury's Qualified School Construction Bond Allocations for 2009.

Funding for the existing Qualified Zone Academy Bonds (QZAB) program for schools is increased to $2.8 billion ($1.4 billion in 2009 and 1.4 billion in 2010)[page 244, Sec. 1522]. QZABs must be used for rehabilitating or repairing public school facilities, investing in new equipment and technology, developing challenging course materials, and training teachers. QZABs may not be used for new construction. See QZAB Q&A and the U.S. Treasury's Qualified Zone Academy Bond Allocations for 2008 and 2009.

These tax credit programs sharply reduce school borrowing costs by providing tax credits to bond holders in lieu of interest. School districts get interest-free loans and only pay back the principal. On a large project, savings typically can be 50 percent. See the the NCEF resource list Tax Credit Bonds for Schools.

Build America Bonds. These "taxable tax credit bonds" are designed for subsidizing state and local government obligations, a category that includes school construction [p. 245]. See the U.S. Treasury guidance notice Build America Bonds and Direct Payment Subsidy Implementation.

The language of the ARRA and the Conference Report upon which it is based is identical in the sections cited above.

Spend Smartly

SPEND SMARTLY

The fiscal stimulus provides an unprecedented opportunity to improve teaching and learning in our nation's schools. Spend wisely. Spend smartly!

THINK HIGH PERFORMING SCHOOLS > HIGH PERFORMING STUDENTS

Discuss potential school improvement projects with your entire school faculty and staff. Ask these questions of each project:

1) Is it educationally appropriate? Some projects, like fixing a leaky roof, are an outright necessity, but many are judgment calls. Is money better spent on security cameras or improving classroom acoustics? Teachers need to be given an effective voice in these matters. The idea is to make both school buildings and students high performing.

2) Is it neighborhood friendly? School improvement projects often have an impact on the surrounding neighborhood. Consult with neighbors and give them the opportunity to voice their opinions. Treated with consideration, neighbors can be strong allies.

3) Is it environmentally sound? Energy efficiency and indoor environmental quality should be a high priority for every project. But not all design professionals understand the ways lighting, acoustics, indoor air quality, comfort, and safety enhance learning. Be picky. Hire consultants who know how to save energy and enhance the learning environment.

4) What is its long term impact? Some schools need major short-term repairs just to keep functioning. For them, the economic stimulus will appear to be a godsend. But could the stimulus money be better spent as a partial contribution to a complete building overhaul? Although this question may have no easy answer, think it through. Don't let the stimulus funding make you throw good money after bad. Be creative. Try to develop a spending plan based on the long term.

Organizations supporting this "high performance" approach to schools include the National Institute of Building Sciences, the Council of Educational Facility Planners International (CEFPI), the American Institute of Architects, the American Architectural Foundation, Rebuild America's Schools, the 21st Century School Fund, the Collaborative for High Performance Schools (CHPS), the U.S.G.B.C. Build Green Schools Program, the National School Plant Management Association, the Coalition for Community Schools, and the Society for College and University Planning.

USE THE BEST TECHNOLOGY AVAILABLE

School technology is rapidly becoming integrated and web-based, from the classroom to school administration, facilities operations, and security. But it's a complicated subject, so be informed and seek expert, third-party guidance. See the NCEF Technology resource lists.

MAKE YOUR SCHOOL ENERGY-SMART

The U.S. Department of Energy's EnergySmart Schools program calls for new schools to be 50 percent more efficient than current energy codes require and existing schools to be 30 percent more efficient. To achieve these goals, EnergySmart Schools provides information and resources on financing; tools and resources to assist decision makers in planning; best practices for building industry professionals on energy-efficient school construction and renovation; best practices for facilities managers on operating and maintaining high-performance systems and equipment; and resources for teachers in developing energy-related curricula.

Many states have their own Energy Smart Schools programs. Check with your state department of education or energy.

Other excellent sources of information are:

-- Greening America's Schools: Costs and Benefits.

-- ASHRAE's Advanced Energy Design Guide for K-12 School Buildings, http://www.ashrae.org/publications/page/1604.

-- The Alliance to Save Energy.

CHECK OUT C.H.P.S. AND THE BUILD GREEN SCHOOLS PROGRAM

The Collaborative for High Performance Schools (CHPS) and the U.S Green Building Council's Build Green Schools program provide extensive information on building energy-efficient, healthy, high performance schools. CHPS Registered gives schools and districts free access to tools and resources for designing, constructing, modernizing and operating high performance school facilities.

REMEMBER SAFETY, SECURITY, AND HEALTH

Visit the NCEF Safe Schools webpage for information on making your school facilities safe and secure. For hazard mitigation, see the NCEF publication Mitigating Hazards in School Facilities, including the 25 online NCEF Assessment Guides, or the NCEF Safe Schools Facilities Checklist.

Several states have school safety centers; check with your state department of education.

For environmental health, the U.S. Environmental Protection Agency's Healthy School Environments Assessment Tool, Version 2 [HealthySEAT].

TAP NCEF's 18,000 RESOURCES

NCEF provides access to over 18 thousand resources on school planning, design, construction, maintenance, and repair. Explore the NCEF Resource Lists -- over 150 subject-based compilations of books, studies, reports, journal articles, and websites. Resource lists that may be of special interest to recipients of economic stimulus funds are shown in the Related NCEF Resource Lists section, below.

To locate more specific information, use NCEF's search box at the top of this webpage, or NCEF's Advanced Search.

For a wide variety of online building design and construction criteria, refer to the Whole Building Design Guide.

The standard textbook on school planning and design is Educational Facilities Planning: Leadership, Architecture, and Management by Ken Tanner and Jeff Lackney. To order, Allyn & Bacon, 75 Arlington St., Boston, MA 02116.

For general building assessments:

(1) California's Coalition for Adequate School Housing's (CASH) Facility Inspection Tool Guidebook

(2) The Council of Education Facility Planners, International's Creating Connections: The CEFPI Guide for Educational Facility Planning; the Guide for School Facility Appraisal; and An Appraisal Guide for Older, Historic School Facilities. Order from http://www.cefpi.org/i4a/ams/amsstore.

(3) Henry Sanoff's School Building Assessment Methods.

Some states have developed their own school facility assessment tools; check with your state department of education.

FAQ

Q: How much ARRA money is allocated to my state/district/school for school modernization?

A: School modernization, among many other competing needs, MAY be funded from the State Fiscal Stabilization Fund in states where governors and state and local officials decide to use funds for that purpose. To learn the overall amount of State Fiscal Stabilization Funds your state will be receiving, see the Department of Education's allocations at ARRA State and Local Allocation Tables. To see states' applications for initial funding under the State Fiscal Stabilization Fund Program, see State Grants.

Q: What is the allocation of Qualified Zone Academy Bonds and Qualified School Construction Bonds to my state or local education agency in 2009 and 2010? Are there guidelines for using these tax credit bond programs?

A: On April 3, the Department of the Treasury released guidance and allocations. See Qualified Zone Academy Bond Allocations for 2008 and 2009 and Qualified School Construction Bond Allocations for 2009.

Q: How can I determine if my state is using ARRA funds for school modernization?

A: Once funds are distributed to states, the official ARRA website, located at Recovery.gov, will help you track your state's recovery funds, including school modernization projects, where applicable. States are creating websites with information on their ARRA expenditures, as well. See the state webpage map.

Q: Can schools and institutions of higher education use Build America Bonds to finance construction and modernization projects?

A: Yes, Build America Bonds are taxable bonds that will provide much-needed funding for state and local governments at lower borrowing costs. The capital projects these bonds would fund include schools. For implementation guidance, see Build America Bonds Implementation..

Q: What stimulus funding is available for modernization or construction of institutions of higher education facilities?

A: 1) States and state governors may choose to direct funds from the State Fiscal Stabilization Fund for the modernization, renovation, and repair of institutions of higher education facilities. 2) Higher education institutions will be able to finance projects with Build America Bonds. 3) The following government agencies have stimulus funding in their budgets for modernization and construction of academic research facilities: National Institute of Health, National Science Foundation, and the National Institute of Standards and Technology. For continuously updated information on sources of Recovery Act funding for higher education, see NCEF Summary Chart.

Q: Is stimulus funding provided to repair,modernize, or construct Bureau of Indian Affairs (BIA) schools?

A: 1) The Department of Interior has allocated $277.7 million for the construction, maintenance, repair, and improvement of BIA schools. 2) There is $400 million in Qualified School Construction Bonds for Indian Schools. 3) Additional funding of $100 million will be available to school districts that receive Impact Aid for emergency repairs and school modernization. 4) Energy efficiency block grants are allocated to tribes that may be used for improving the energy efficiency of school buildings. See Department of Interior Recovery Investments.

Q: Are schools and higher education institutions eligible for funding for energy efficiency improvements from the Energy Efficiency and Conservation Block Grants Program and the State Energy Program?

A: ARRA provides $3.1 billion to the State Energy Program and $3.2 billion for Energy Efficiency and Conservation Block Grant Program to be allocated by states, cities, counties, tribes, and territories. According to guidance from the U.S. Department of Energy, among many options, funds are available for financing energy efficiency and renewable energy measures in public buildings, including public and private non-profit schools. Schools, school districts, or higher education insitutions are advised to begin working with their state or local energy offices that are now developing their overall energy conservation strategy. Schools must be included in that strategy in order for there to be subgrants that schools may apply for. See Energy Efficiency and Conservation Block Grant Program and State Energy Program . DOE now has a Clearinghouse with helpful information online and a toll free number to call. See DOE Recovery Act Clearinghouse .

Q: May an LEA use Education Stabilization funds for construction activities that are not considered to be modernization, renovation, or repair?

A: Yes, according to Modifications to Questions in the Guidance on the State Fiscal Stabilization Fund Program, May 11, 2009, an LEA (including a charter school LEA) may use funds to support the construction of new school buildings, including construction activities that are consistent with a recognized green-building rating system. However, the Department discourages LEAs from using Education Stabilization funds for new construction because this use of funds may limit an LEA’s ability to meet other essential needs or implement necessary reform initiatives. The Department does not discourage an LEA from using Education Stabilization funds for modernization, renovation, or repair.

Q: May an Institution of Higher Education use Education Stabilization funds to support new construction?

A: No, according to Guidance on the State Fiscal Stabilization Fund Program, an IHE may use Education Stabilization funds only for modernization, renovation, or repair activities. See pages 34-38 of the Guidance.

Q: Can school districts and community college districts apply directly for State Energy Program (SEP) and Energy Efficiency and Conservation Block Grant (EECBG) funds or do they have to partner with a city, county or other entity?

A: Only the designated State Energy Office is eligible to apply to the Department of Energy (DOE) for SEP funds. Only specified cities and counties (as listed in DOE's Funding Opportunity Announcement) are eligible to apply to DOE for EECBG funds. Funding solicitations for elibible projects will be released by those entities.

Q: What has the Department of Education recommended to decision makers using ARRA funds for school modernization that will improve educational outcomes and advance reforms?

A: The Education Department's recommendation is to modernize schools to be open to the community, accessible, and energy efficient, and to have up-to-date science labs and technology that enhance learning. Include early learning facilities that are safe and appropriate for the youngest children. See Using ARRA Funds to Drive School Reform and Improvement, April 24, 2009.

Related Events

Webinar: Recovery Act Technical Assistance: Equipment & Property Management
July 26, 2010

Recent Journal Articles

HIRE Act Allows Issuers of Certain Tax Credit Bonds to Receive Direct Payment from the Federal Government.
Lexology, March 2010

Stimulus Response.
American School and University, March 2010

Qualified School Construction Bonds (QSCBs.
Cash Register, March 2010

New Ways for School Districts to Issue Bonds under the Recovery Act.
School Business Affairs, March 2010

Proposed Direct Subsidy Payments for QSCB and QZAB Programs.
Lexology, January 2010

Charter School Business: Stimulus Funds Available for Charter School Facility Financing in Small Communities.
Charter School Monthly, November 2009

The Hot Iron. [Saving Money on School Construction.]
American School Board Journal, October 2009

Opportunity and Danger: The Two Sides of the American Recovery and Investment Act.
School Business Affairs, September 2009

New Money for Labs: Tips for Responding to the Federal Initiative.
Laboratory Design, June 2009

Aid for Facilities.
American School and University, June 2009

Getting a Piece of the Pie: Schools Need to Be Proactive, Flexible When Pursuing Stimulus Funding.
Educational Facility Planner, June 2009

School Facilities and Tax Credit Bonds.
Educational Facility Planner, June 2009

Related NCEF Resource Lists

Build New or Renovate School Facilities?

Community Participation in School Planning

Condition of Schools in America

Healthy School Environments

High Performance Green Schools

Preserving Historic Neighborhood Schools

School Energy Savings

School Facilities Assessment

School Facilities Funding - Federal

School Modernization and Renovation

Selecting School Design Professionals

Tax Credit Bonds for Schools

Technology Integration 2006-2009