Laws & Guidance GENERAL
Legislation: American Recovery and Reinvestment Act of 2009 (ARRA)
School Modernization

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Sec. 14002. State Use of Funds.

  1. Other Government Services.
    1. In general. The Governor shall use 18.2 percent of the State's allocation under section 14001 for public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher 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.
    2. Availability to all institutions of higher education. A Governor shall not consider the type or mission of an institution of higher education, and shall consider any institution for funding for modernization, renovation, and repairs within the State that—
      1. qualifies as an institution of higher education, as defined in subsection 14013(3); and
      2. continues to be eligible to participate in the programs under title IV of the Higher Education Act of 1965.
  2. Rule of Construction. Nothing in this section shall allow a local educational agency to engage in school modernization, renovation, or repair that is inconsistent with State law.

Sec. 14003. Uses of Funds by Local Educational Agencies.

  1. In General. local educational agency that receives funds under this title may use he funds for any activity authorized by the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) ("SEA"), the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) ("IDEA"), the Adult and Family Literacy Act (20 U.S.C. 1400 et seq.), or the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) ("the Perkins Act") or for modernization, renovation, or repair of public school facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.
  2. Prohibition. A local educational agency may not use funds received under this title 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; or
    4. improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities.
  3. Rule of Construction. Nothing in this section shall allow a local educational agency to engage in school modernization, renovation, or repair that is inconsistent with State law.

Sec. 14004. Uses of Funds by Institutions of Higher Education.

  1. In General. A public institution of higher education that receives funds under this title shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students, or for modernization, Page 4 of 9 renovation, or repair of institution of higher education facilities that are primarily used for instruction, research, or student housing, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.
  2. Prohibition. An institution of higher education may not use funds received under this title to increase its endowment.
  3. Additional Prohibition. No funds awarded under this title may be used for—
    1. the maintenance of systems, equipment, or facilities;
    2. modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or
    3. modernization, renovation, or repair of facilities—
      1. used for sectarian instruction or religious worship; or
      2. in which a substantial portion of the functions of the facilities are subsumed in a religious mission.

Impact Aid

For an additional amount for "Impact Aid" to carry out section 8007 of title VIII of the Elementary and Secondary Education Act of 1965, $100,000,000, which shall be expended pursuant to the requirements of section 805.

Sec. 805. Grants for Impact Aid Construction.

  1. RESERVATION FOR MANAGEMENT AND OVERSIGHT. From the funds appropriated to carry out this section, the Secretary may reserve up to 1 percent for management and oversight of the activities carried out with those funds.
  2. CONSTRUCTION PAYMENTS.
    1. FORMULA GRANTS.
      1. IN GENERAL. From 40 percent of the amount not reserved under subsection (a), the Secretary shall make payments in accordance with section 8007(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(a)), except that the amount of such payments shall be determined in accordance with subparagraph (B).
      2. AMOUNT OF PAYMENTS. The Secretary shall make a payment to each local educational agency eligible for a payment under section 8007(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(a)) in an amount that bears the same relationship to the funds made available under subparagraph (A) as the number of children determined under subparagraphs (B), (C), and (D)(i) of section 8003(a)(1) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), (C), and (D)(i)) who were in average daily attendance in the local educational agency for the most recent year for which such information is available bears to the number of such children in all the local educational agencies eligible for a payment under section 8007(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(a)).
    2. COMPETITIVE GRANTS. From 60 percent of the amount not reserved under subsection (a), the Secretary—
      1. shall award emergency grants in accordance with section 8007(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(b)) to eligible local educational agencies to enable the agencies to carry out emergency repairs of school facilities; and
      2. may award modernization grants in accordance with section 8007(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(b)) to eligible local educational agencies to enable the agencies to carry out the modernization of school facilities.
    3. PROVISIONS NOT TO APPLY. Paragraphs (2), (3), (4), (5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3), (4), (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made under paragraph (2).
    4. ELIGIBILITY. A local educational agency is eligible to receive a grant under paragraph (2) if the local educational agency—
      1. was eligible to receive a payment under section 8002 or 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702 and 7703) for fiscal year 2008; and
      2. has—
        1. a total taxable assessed value of real property that may be taxed for school purposes of less than $100,000,000; or
        2. an assessed value of real property per student that may be taxed for school purposes that is less than the average of the assessed value of real property per student that may be taxed for school purposes in the State in which the local educational agency is located.
    5. CRITERIA FOR GRANTS. In awarding grants under paragraph (2), the Secretary shall consider the following criteria:
      1. Whether the facility poses a health or safety threat to students and school personnel, including noncompliance with building codes and inaccessibility for persons with disabilities, or whether the existing building capacity meets the needs of the current enrollment and supports the provision of comprehensive educational services to meet current standards in the State in which the local educational agency is located.
      2. The extent to which the new design and proposed construction utilize energy efficient and recyclable materials.
      3. The extent to which the new design and proposed construction utilizes non-traditional or alternative building methods to expedite construction and project completion and maximize cost efficiency.
      4. The feasibility of project completion within 24 months from award.
      5. The availability of other resources for the proposed project.

 
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Last Modified: 02/19/2009