I
107TH CONGRESS
1ST SESSION
H. R. 625
To amend the Elementary and Secondary Education Act of 1965 to authorize
grants to States for the construction, repair, renovation, and moderniza-
tion of public school facilities, to amend the Internal Revenue Code
of 1986 to expand the tax incentives for such undertakings, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 14, 2001
Mr. BLAGOJEVICH introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To amend the Elementary and Secondary Education Act
of 1965 to authorize grants to States for the construc-
tion, repair, renovation, and modernization of public
school facilities, to amend the Internal Revenue Code
of 1986 to expand the tax incentives for such under-
takings, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal School Con-
struction Act of 2001’’.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) In 1950, the United States was suffering
the effects of an inadequate transportation system.
The conventional wisdom was that roads were a local
concern.
(2) President Dwight D. Eisenhower deter-
mined that a deficient transportation system was a
threat to our economy and our national security.
(3) Today, the interstate highway system
stands as a testament to discarding old ways of
thinking to meet modern demands.
(4) Like the interstate highway system in the
1950’s, the state of our public school facilities is a
national concern, with national consequences.
(5) According to the National Center for Edu-
cation Statistics, it will cost $127,000,000,000 to
render the condition of public elementary and sec-
ondary school facilities in the United States ade-
quate.
(6) Of the $112,000,000,000 that the Comp-
troller General of the United States estimated in
1996 was needed for such purpose, approximately
$11,000,000,000 was deemed necessary in order to
comply with Federal mandates, such as asbestos re-
moval and ensuring access for students with disabil-
ities.
(7) According to the American Society of Civil
Engineers, the United States needs to spend
$60,000,000,000 for new school construction to ac-
commodate 3,000,000 students.
(8) According to the National Center for Edu-
cation Statistics, 3⁄4 of the schools in the United
States reported needing to spend money on repairs,
renovations, and modernization in order to put
school buildings into good overall condition.
(9) In 1999, the average age of school buildings
in the United States was 40, the age at which most
buildings can deteriorate rapidly.
(10) The Comptroller General of the United
States reported that the largest proportion of
schools reporting deteriorating school conditions
were in central cities serving more than 50 percent
minority students or 70 percent or more of poor stu-
dents. However, one of every two rural school re-
ported at least one inadequate school structural fea-
ture.
(11) According to the National Center for Edu-
cation Statistics, the average dollar amount schools
reported needing to spend for repair per school was
$2,200,000, or approximately $3,800 per student.
(12) Estimates of the cost of new construction
for schools vary. According to the magazine School
Planning and Management, in terms of the national
profile of new schools being constructed, the median
cost for an elementary school is $8,000,000, for a
middle school is $12,000,000, and for a high school
is $18,900,000. According to the magazine Amer-
ican School and University such median costs are
$9,200,000, $14,300,000, and $21,500,000, respec-
tively. There are regional variations in costs as well.
(13) In examining trends in annual State school
construction expenditures since 1990, it becomes evi-
dent that they range from $37 per student to $934
per student, with a national average of $473.
(14) According to the National Center for Edu-
cation Statistics, approximately 1⁄4 of public schools
are overcrowded and, of those, the larger schools
with higher minority enrollments are more seriously
overcrowded, that is, are more than 25 percent over-
enrolled.
SEC. 3. GRANTS FOR SCHOOL CONSTRUCTION AND REN-
OVATION.
Title XII of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 8501 et seq.) is amended
to read as follows:
‘‘TITLE XII—SCHOOL FACILITIES
INFRASTRUCTURE IMPROVE-
MENT
‘‘SEC. 12001. GRANTS FOR SCHOOL CONSTRUCTION, RE-
PAIR, RENOVATION, AND MODERNIZATION.
‘‘(a) PROGRAM AUTHORITY.—
‘‘(1) RESERVATION FOR NATIVE AMERICAN AND
ALASKA NATIVE CHILDREN IN SCHOOL.—
‘‘(A)) IN GENERAL.—From the amount ap-
propriated under each of subsections (b) and
(c) of section 12003 to carry out this title for
any fiscal year, the Secretary shall reserve 1
percent to provide Federal financial assistance
to elementary and secondary schools operated
predominately for Native American or Alaska
Native children and youth, an Indian tribe, a
tribally sanctioned educational authority, or an
elementary or secondary school that is operated
or funded by the Bureau of Indian Affairs.
‘‘(B) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) INDIAN
TRIBE.—The term ‘In-
dian tribe’ means any Indian tribe, band,
nation, or other organized group or com-
munity, including any Alaska Native vil-
lage or regional or village corporation as
defined in or established pursuant to the
Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.), that is recognized for
the special programs and services provided
by the United States to Indians because of
their status as Indians.
‘‘(ii) TRIBALLY
SANCTIONED
EDU-
CATIONAL AUTHORITY.—The term ‘tribally
sanctioned educational authority’ means—
‘‘(I) any department or division
of education operating within the ad-
ministrative structure of the duly con-
stituted governing body of an Indian
tribe; and
‘‘(II) any nonprofit institution or
organization that is chartered by the
governing body of an Indian tribe to
operate any such school or otherwise
to oversee the delivery of educational
services to members of that tribe and
approved by the Secretary for the pur-
pose of this paragraph.
‘‘(2) GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—From the funds appropriated to carry out
this title for each fiscal year and not reserved under
paragraph (1), the Secretary shall award grants to
local educational agencies in each of the following
categories:
‘‘(A) Local educational agencies in which
the number of students enrolled is less than
2,500.
‘‘(B) Such agencies in which such number
is 2,500 or greater but less than 5,000.
‘‘(C) Such agencies in which such number
is 5,000 or greater but less than 10,000.
‘‘(D) Such agencies in which such number
is 10,000 or greater but less than 25,000.
‘‘(E) Such agencies in which such number
is 25,000 or greater but less than 50,000.
‘‘(F) Such agencies in which such number
is 50,000 or greater.
‘‘(3) MAXIMUM
AWARD
AMOUNTS.—The Sec-
retary shall annually set the maximum award
amounts for each category described in subsection
paragraph (2).
‘‘(4) ALLOCATION
AMONG
CATEGORIES.—The
Secretary shall allocate funds under this title among
each of the categories described in paragraph (2) on
such basis as the Secretary determines is appro-
priate, including the relative costs of carrying out
activities under this title in eligible local educational
agencies in each such category.
‘‘(5) CRITERIA
TO
BE
USED
IN
AWARDING
GRANTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
award grants to local educational agencies
under this title primarily on the basis of the
need of the agency for the school construction,
repair, renovation, or modernization, as dem-
onstrated by the condition of its public school
facilities.
‘‘(B) OTHER
CRITERIA.—The Secretary
may also take into account—
‘‘(i) the extent to which the local edu-
cational agency lacks the fiscal capacity,
including the ability to raise funds through
the full use of such agency’s bonding ca-
pacity and otherwise, to undertake the
project without Federal assistance; and
‘‘(ii) such other criteria as the Sec-
retary may prescribe by regulation.
‘‘(C) GUARANTEED STATE MINIMUM.—To
the maximum extent practicable, local edu-
cational agencies from each State collectively
shall receive at least 0.5 percent of the amount
awarded under this title for each fiscal year.
‘‘(b) USES OF FUNDS.—
‘‘(1) IN
GENERAL.—Each eligible local edu-
cational agency receiving a grant under this title—
‘‘(A) for new construction shall use the
grant funds only for—
‘‘(i) constructing new public elemen-
tary and secondary school structures—
‘‘(I) suitable for classrooms, lab-
oratories, libraries, media centers, or
related facilities; and
‘‘(II) whose primary purpose is
the academic or vocational instruction
of public elementary and secondary
school students; or
‘‘(ii) acquiring the land on which such
a structure is to be constructed; and
‘‘(B) for repair, renovation, or moderniza-
tion shall use the grant funds only for such ac-
tivities with respect to such a structure.
‘‘(2) IMPERMISSIBLE
USES
OF
FUNDS.—No
funds received under this title may be used for—
‘‘(A) payment of maintenance costs in con-
nection with any projects constructed in whole
or part with Federal funds provided under this
title; or
‘‘(B) stadiums or other facilities primarily
used for athletic contests or exhibitions or other
events for which admission is charged to the
general public.
‘‘SEC. 12002. GENERAL PROVISIONS.
‘‘(a) CHARTER SCHOOLS.—A public charter school
that constitutes a local educational agency under State law
shall be eligible for assistance under this title under the
same terms and conditions as any other local educational
agency.
‘‘(b) SUPPLEMENT, NOT SUPPLANT.—A local edu-
cational agency shall use Federal funds subject to this title
only to supplement the amount of funds that would, in
the absence of such Federal funds, be made available from
non-Federal sources.
‘‘(c) SPECIAL RULE.—Each local educational agency
that receives funds under this title shall ensure that, if
it carries out construction, repair, renovation, or mod-
ernization through a contract, any such contract process
ensures the maximum number of qualified bidders, includ-
ing small, minority, and women-owned businesses, through
full and open competition.
‘‘(d) PUBLIC COMMENT.—Each local educational
agency receiving funds under this title—
‘‘(1) shall provide parents, educators, and all
other interested members of the community the op-
portunity to consult on the use of funds;
‘‘(2) shall provide the public with adequate and
efficient notice of the opportunity described in para-
graph (1) in a widely read and distributed medium;
and
‘‘(3) shall provide the opportunity described in
paragraph (1) in accordance with any applicable
State and local law specifying how the comments
may be received and how the comments may be re-
viewed by any member of the public.
‘‘(e) REPORTING.—Each local educational agency re-
ceiving funds under this title shall submit a report to the
Secretary, at such time as the Secretary may require, de-
scribing the use of such funds.
‘‘SEC. 12003. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this title $26,180,000,000 for each
of fiscal years 2002 through 2006.
‘‘(b) 
SCHOOL
CONSTRUCTION.—Of 
such 
total
amount, $8,400,000,000 are authorized to be appro-
priated for each such fiscal year for grants for con-
structing new public elementary and secondary school fa-
cilities and acquiring the land on which such facilities are
to be constructed.
‘‘(c) SCHOOL REPAIR, RENOVATION, AND MOD-
ERNIZATION.—Of such total amount, $17,780,000,000
are authorized to be appropriated for each such fiscal year
for grants for repair, renovation, and modernization of
public elementary and secondary school facilities.’’.
SEC. 4. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the
following new subchapter:
‘‘Subchapter XI—Public School
Modernization Provisions
‘‘Sec. 1400K. Credit to holders of qualified public school mod-
ernization bonds.
‘‘Sec. 1400L. Qualified school modernization bonds.