I 
115TH CONGRESS 
1ST SESSION H. R. 2475 
To provide for the long-term improvement of public school facilities, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 17, 2017 
Mr. SCOTT of Virginia (for himself, Mr. DEFAZIO, Mr. PALLONE, Mr. NOR-
CROSS, Mrs. DINGELL, Mr. KIHUEN, Ms. NORTON, Mr. SABLAN, Mr. 
ESPAILLAT, Ms. BONAMICI, Ms. ADAMS, Mr. RYAN of Ohio, Mr. 
GALLEGO, Mr. NADLER, Ms. JACKSON
LEE, Mr. EVANS, Ms. 
VELA´ZQUEZ, Ms. WILSON of Florida, Ms. SEWELL of Alabama, Ms. 
CLARKE of New York, Mr. TED LIEU of California, Mr. PAYNE, Ms. 
KAPTUR, Mrs. DEMINGS, Mr. VELA, Ms. FUDGE, Mr. RUSH, Ms. BLUNT 
ROCHESTER, Mr. RICHMOND, Mr. JOHNSON of Georgia, Mr. POCAN, Mr. 
CONYERS, Mr. ENGEL, Ms. ROYBAL-ALLARD, Mr. CLEAVER, Mr. 
KHANNA, Mr. COHEN, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. 
JEFFRIES, Mr. BRADY of Pennsylvania, Mr. CLAY, Mr. TAKANO, Mr. 
VARGAS, Mr. BLUMENAUER, Mr. MCEACHIN, Mrs. TORRES, Mr. NOLAN, 
Mr. DESAULNIER, Mr. LOEBSACK, Ms. MOORE, Ms. HANABUSA, Mr. 
SERRANO, Mr. BEN RAY LUJA´N of New Mexico, Mr. GENE GREEN of 
Texas, Ms. DELAURO, Ms. CASTOR of Florida, Ms. SCHAKOWSKY, Mr. 
MCGOVERN, and Mr. CARTWRIGHT) introduced the following bill; which 
was referred to the Committee on Education and the Workforce, and in 
addition to the Committees on Ways and Means, and the Budget, 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 com-
mittee concerned 
A BILL 
To provide for the long-term improvement of public school 
facilities, and for other purposes. 
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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 ‘‘Rebuild America’s 
Schools Act of 2017’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Education and 
the Workforce of the House of Representatives and 
the Committee on Health, Education, Labor and 
Pensions of the Senate 
(2) BUREAU-FUNDED SCHOOL.—The term ‘‘Bu-
reau-funded school’’ has the meaning given to the 
term in section 1141 of the Education Amendments 
of 1978 (25 U.S.C. 2021). 
(3) COVERED
FUNDS.—The term ‘‘covered 
funds’’ means funds received— 
(A) under title I of this Act; or 
(B) from a school infrastructure bond. 
(4) ESEA TERMS.—The terms ‘‘elementary 
school’’, ‘‘local educational agency’’, ‘‘outlying area’’, 
and ‘‘secondary school’’ have the meanings given to 
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the terms in section 8101 of the Elementary and 
Secondary Education Act 1965 (20 U.S.C. 7801). 
(5) PUBLIC
SCHOOL
FACILITIES.—The term 
‘‘public school facilities’’ means the facilities of a 
public elementary school or a public secondary 
school. 
(6) QUALIFIED
LOCAL
EDUCATIONAL
AGEN-
CY.—The term ‘‘qualified local educational agency’’ 
means a local educational agency that receives funds 
under part A of title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311 et 
seq.). 
(7) SCHOOL
INFRASTRUCTURE
BOND.—The 
term ‘‘school infrastructure bond’’ means a bond 
designated by the issuer as a school infrastructure 
bond under section 54BB of the Internal Revenue 
Code of 1986 (as added by section 201). 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(9) STATE.—The term ‘‘State’’ means each of 
the 50 States and the District of Columbia. 
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TITLE 
I—GRANTS 
FOR 
THE 
LONG-TERM 
IMPROVEMENT 
OF PUBLIC SCHOOL FACILI-
TIES 
SEC. 101. PURPOSE AND RESERVATION. 
(a) PURPOSE.—Funds made available under this title 
shall be for the purpose of supporting long-term improve-
ments to public school facilities in accordance with this 
Act. 
(b) RESERVATION FOR OUTLYING AREAS, PUERTO 
RICO, AND BUREAU-FUNDED SCHOOLS.— 
(1) IN
GENERAL.—For each of fiscal years 
2018 through 2020, the Secretary shall reserve, 
from the amount appropriated to carry out this 
title— 
(A) one-half of 1 percent, to provide assist-
ance to the outlying areas; 
(B) one-half of 1 percent, to provide assist-
ance to the Commonwealth of Puerto Rico; and 
(C) one-half of 1 percent, for payments to 
the Secretary of the Interior to provide assist-
ance to Bureau-funded schools. 
(2) USE OF RESERVED FUNDS.—Sections 301 
through 304 shall apply to the use of funds reserved 
under paragraph (1). 
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SEC. 102. ALLOCATION TO STATES. 
(a) ALLOCATION TO STATES.— 
(1) STATE-BY-STATE
ALLOCATION.—Of the 
amount appropriated to carry out this title for each 
fiscal year and not reserved under section 101(b), 
each State that has a plan approved by the Sec-
retary under subsection (b) shall be allocated an 
amount in proportion to the amount received by all 
local educational agencies in the State under part A 
of title I of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311 et seq.) for the 
previous fiscal year relative to the total such amount 
received by all local educational agencies in every 
State that has a plan approved by the Secretary 
under subsection (b). 
(2) STATE RESERVATION.—A State may reserve 
not more than 1 percent of its allocation under para-
graph (1) to carry out its responsibilities under this 
Act, which shall include— 
(A) providing technical assistance to local 
educational agencies, including by— 
(i) identifying which State agencies 
have programs, resources, and expertise 
relevant to the activities supported by the 
allocation under this section; and 
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(ii) coordinating the provision of tech-
nical assistance across such agencies; 
(B) in accordance with the guidance issued 
by the Secretary under section 307, developing 
an online, publicly searchable database that 
contains an inventory of all public school facili-
ties infrastructure in the State (including the 
facilities of Bureau-funded schools, as appro-
priate), including, with respect to each such fa-
cility, an identification of— 
(i) 
the 
information 
described 
in 
clauses (i) through (vi) of subparagraph 
(F); 
(ii) the age (including an identifica-
tion of the date of any retrofits or recent 
renovations) of— 
(I) the facility; 
(II) its roof; 
(III) its lighting system; 
(IV) its windows; 
(V) its ceilings; 
(VI) its plumbing; and 
(VII) its heating, ventilation, and 
air conditioning system; 
(iii) fire safety inspection results; and 
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(iv) the proximity of the facilities to 
toxic sites or the vulnerability of the facili-
ties to natural disasters, including the ex-
tent to which facilities that are vulnerable 
to natural disasters are seismically retro-
fitted; 
(C) updating the database developed under 
subparagraph (B) not less frequently than once 
every 2 years; 
(D) ensuring that the information in the 
database developed under subparagraph (B)— 
(i) is posted on a publicly accessible 
website of the State; and 
(ii) is regularly distributed to local 
educational agencies and Tribal govern-
ments in the State; 
(E) issuing or reviewing regulations to en-
sure the health and safety of students and staff 
during construction or renovation projects; and 
(F) issuing or reviewing regulations to en-
sure safe, healthy, and high-performing school 
buildings, including regulations governing— 
(i) indoor air quality and ventilation, 
including exposure to carbon monoxide and 
carbon dioxide; 
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(ii) mold, mildew, and moisture con-
trol; 
(iii) the safety of drinking water at 
the tap and water used for meal prepara-
tion, including regulations that— 
(I) address presence of lead and 
other contaminants in such water; and 
(II) require the regular testing of 
the potability of water at the tap; 
(iv) energy and water efficiency; 
(v) excessive classroom noise; and 
(vi) the levels of maintenance work, 
operational spending, and capital invest-
ment needed to maintain the quality of 
public school facilities; and 
(G) creating a plan to reduce or eliminate 
exposure to toxins and chemicals, including 
mercury, radon, PCBs, lead, vapor intrusions, 
and asbestos. 
(b) STATE PLAN.— 
(1) IN GENERAL.—To be eligible to receive an 
allocation under this section, a State shall submit to 
the Secretary a plan that— 
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(A) describes how the State will use the al-
location to make long-term improvements to 
public school facilities; 
(B) explains how the State will carry out 
each of its responsibilities under subsection 
(a)(2); 
(C) explains how the State will make the 
determinations under subsections (b) and (c) of 
section 103; 
(D) identifies how long, and at what levels, 
the State will maintain fiscal effort for the ac-
tivities supported by the allocation after the 
State no longer receives the allocation; and 
(E) includes such other information as the 
Secretary may require. 
(2) APPROVAL
AND
DISAPPROVAL.—The Sec-
retary shall have the authority to approve or dis-
approve a State plan submitted under paragraph 
(1). 
(c) CONDITIONS.—As a condition of receiving an allo-
cation under this section, a State shall agree to the fol-
lowing: 
(1) MATCHING REQUIREMENT.—The State shall 
contribute, from non-Federal sources, an amount 
equal to 10 percent of the amount of the allocation 
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received under this section to carry out the activities 
supported by the allocation. 
(2) MAINTENANCE
OF
EFFORT.—The State 
shall provide an assurance to the Secretary that the 
combined fiscal effort per student or the aggregate 
expenditures of the State with respect to the activi-
ties supported by the allocation under this section 
for fiscal years beginning with the fiscal year for 
which the allocation is received will be not less than 
90 percent of the combined fiscal effort or aggregate 
expenditures by the State for such purposes for the 
year preceding the fiscal year for which the alloca-
tion is received. 
(3) SUPPLEMENT NOT SUPPLANT.—The State 
shall use an allocation under this section only to 
supplement the level of Federal, State, and local 
public funds that would, in absence of such alloca-
tion, be made available for the activities supported 
by the allocation, and not to supplant such funds. 
SEC. 103. NEED-BASED GRANTS TO QUALIFIED LOCAL EDU-
CATIONAL AGENCIES. 
(a) GRANTS TO LOCAL EDUCATIONAL AGENCIES.— 
(1) IN GENERAL.—Subject to paragraph (2), 
from the amounts allocated to a State under section 
102(a) and contributed by the State under section 
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102(c)(1), the State shall award grants to qualified 
local educational agencies, on a competitive basis, to 
carry out the activities described in section 301(a). 
(2) ALLOWANCE FOR DIGITAL LEARNING.—A 
State may use up to 10 percent of the amount de-
scribed in paragraph (1) to make grants to qualified 
local educational agencies carry out activities to im-
prove digital learning in accordance with section 
301(b). 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under this section a qualified local educational agency— 
(1) shall be among the local educational agen-
cies in the State— 
(A) with the greatest need to improve pub-
lic school facilities, as determined by the State, 
which may include consideration of threats 
posed by the proximity of the facilities to toxic 
sites or the vulnerability of the facilities to nat-
ural disasters; 
(B) with the highest numbers or percent-
ages of students counted under section 1124(c) 
of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6333(c)); and 
(C) with the most limited capacity to raise 
funds for the long-term improvement of public 
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school facilities, as determined by an assess-
ment of— 
(i) the current and historic ability of 
the agency to raise funds for construction, 
renovation, modernization, and major re-
pair projects for schools; 
(ii) whether the agency has been able 
to issue bonds or receive other funds to 
support construction projects, including— 
(I) qualified school construction 
bonds under section 54F of the Inter-
nal Revenue Code of 1986; 
(II) 
qualified 
zone 
academy 
bonds under section 1397E of the In-
ternal Revenue Code of 1986; 
(III) school infrastructure bonds 
under section 54BB of the Internal 
Revenue Code of 1986 (as added by 
section 201); and 
(IV) funds made available under 
7007 of the Elementary and Sec-
ondary Education Act of 1965 (20 
U.S.C. 7707); and 
(iii) the bond rating of the agency; 
and 
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(2) shall agree to prioritize the improvement of 
the facilities of public schools that serve the highest 
percentages of students who are eligible for a free or 
reduced price lunch under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.) 
(which, in the case of a high school, may be cal-
culated using comparable data from the schools that 
feed into the high school), as compared to other pub-
lic schools in the jurisdiction of the agency. 
(c) PRIORITY
OF GRANTS.—In awarding grants 
under this section, the State shall give priority to local 
educational agencies that— 
(1) demonstrate the greatest need for such a 
grant, as determined by a comparison of the factors 
described in subsection (b); 
(2) will use the grant to improve the facilities 
of— 
(A) elementary schools or middle schools 
that have an enrollment of students who are eli-
gible for a free or reduced price lunch under the 
Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.) that constitutes not 
less than 40 percent of the total student enroll-
ment at such schools; or 
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(B) high schools that have an enrollment 
of students who are eligible for a free or re-
duced price lunch under such Act that con-
stitutes not less than 30 percent of the total 
student enrollment at such schools (which may 
be calculated using comparable data from the 
schools that feed into the high school); 
(3) operate public school facilities that pose a 
severe health and safety threat to students and staff, 
which may include a threat posed by the proximity 
of the facilities to toxic sites or the vulnerability of 
the facilities to natural disasters; and 
(4) serve elementary schools or secondary 
schools that lack access to high-speed broadband 
sufficient to support digital learning (only in the 
case of an agency that will use the grant improve 
such access in accordance with section 301(b)). 
(d) APPLICATION.—To be considered for a grant 
under this section, a qualified local educational agency 
shall submit an application to the State at such time, in 
such manner, and containing such information as the 
State may require. Such application shall include, at min-
imum— 
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(1) the information necessary for the State to 
make the determinations under subsections (b) and 
(c); 
(2) a description of the projects that the agency 
plans to carry out with the grant; and 
(3) an explanation of how such projects will re-
duce risks to the health and safety of staff and stu-
dents at schools served by the agency. 
(e) FACILITIES MASTER PLAN.— 
(1) PLAN REQUIRED.—Not later than 180 days 
after receiving a grant under this section, a qualified 
local educational agency shall submit to the State a 
comprehensive 10-year facilities master plan. 
(2) ELEMENTS.—The facilities master plan re-
quired under paragraph (1) shall include, with re-
spect to all public school facilities of the agency, a 
description of— 
(A) the extent to which public school facili-
ties meet students’ educational needs and sup-
port the agency’s educational mission and vi-
sion; 
(B) the physical condition of the public 
school facilities; 
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(C) the current health, safety, and environ-
mental conditions of the public school facilities, 
including— 
(i) indoor air quality; 
(ii) the presence of hazardous and 
toxic substances and chemicals; 
(iii) the safety of drinking water at 
the tap and water used for meal prepara-
tion, including the level of lead and other 
contaminants in such water; 
(iv) energy and water efficiency; 
(v) excessive classroom noise; and 
(vi) other health, safety, and environ-
mental conditions that would impact the 
health, safety, and learning ability of stu-
dents; 
(D) how the local educational agency will 
address any conditions identified under sub-
paragraph (C); 
(E) the impact of current and future stu-
dent enrollment levels on the design of current 
and future public school facilities, as well as the 
financial implications of such enrollment levels; 
and 
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(F) the dollar amount and percentage of 
funds the local educational agency will dedicate 
to capital construction projects as well as main-
tenance and operations related to maintaining 
public school facilities. 
(3) CONSULTATION.—In developing the facili-
ties master plan required under paragraph (1), the 
qualified local educational agency shall consult with 
teachers, principals and other school leaders, custo-
dial and maintenance staff, emergency first respond-
ers, school facilities directors, students and families, 
community residents, and Indian Tribes and Tribal 
organizations (as applicable). 
(f) SUPPLEMENT NOT SUPPLANT.—A qualified local 
educational agency shall use an allocation received under 
this section only to supplement the level of Federal, State, 
and local public funds that would, in the absence of such 
allocation, be made available for the activities supported 
by the allocation, and not to supplant such funds. 
SEC. 104. ANNUAL REPORT ON GRANT PROGRAM. 
(a) IN GENERAL.—Not later than September 30 of 
each fiscal year beginning after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report on the projects carried 
out with funds made available under this title. 
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(b) ELEMENTS.—The report under paragraph (1) 
shall include, with respect to the fiscal year preceding the 
year in which the report is submitted, the following: 
(1) An identification of each local educational 
agency that received a grant under this title. 
(2) With respect to each such agency, a descrip-
tion of— 
(A) the demographic composition of the 
student population served by the agency, 
disaggregated by— 
(i) race; 
(ii) the number and percentage of stu-
dents counted under section 1124(c) of the 
Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6333(c)); and 
(iii) the number and percentage of 
students who are eligible for a free or re-
duced price lunch under the Richard B. 
Russell National School Lunch Act (42 
U.S.C. 1751 et seq.); 
(B) the population density of the geo-
graphic area served by the agency; 
(C) the projects for which the agency used 
the grant received under this title; 
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(D) the demonstrable or expected benefits 
of the projects; and 
(E) the estimated number of jobs created 
by the projects. 
(3) The total dollar amount of all grants re-
ceived by local educational agencies under this title. 
(c) LEA INFORMATION COLLECTION.—A local edu-
cational agency that receives a grant under this title 
shall— 
(1) annually compile the information described 
in subsection (b)(2); 
(2) make the information available to the pub-
lic, including by posting the information on a pub-
licly accessible website of the Agency; and 
(3) submit the information to the State. 
(d) STATE INFORMATION DISTRIBUTION.—A State 
that receives information from a local educational agency 
under subsection (c) shall— 
(1) compile the information and report it annu-
ally to the Secretary at such time and in such man-
ner as the Secretary may require; 
(2) make the information available to the pub-
lic, including by posting the information on a pub-
licly accessible website of the State; and 
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(3) regularly distribute the information to local 
educational agencies and Tribal governments in the 
State. 
SEC. 105. AUTHORIZATION OF APPROPRIATIONS. 
There 
are 
authorized 
to 
be 
appropriated 
$7,000,000,000 for each of fiscal years 2018 through 
2027 to carry out this title. 
TITLE II—SCHOOL 
INFRASTRUCTURE BONDS 
SEC. 201. SCHOOL INFRASTRUCTURE BONDS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding after section 54AA the fol-
lowing new section: 
‘‘SEC. 54BB. SCHOOL INFRASTRUCTURE BONDS. 
‘‘(a) IN GENERAL.—If a taxpayer holds a school in-
frastructure bond on one or more interest payment dates 
of the bond during any taxable year, there shall be allowed 
as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such 
dates. 
‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 
determined under this subsection with respect to any in-
terest payment date for a school infrastructure bond is 
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100 percent of the amount of interest payable by the 
issuer with respect to such date. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) SCHOOL INFRASTRUCTURE BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘school infrastructure bond’ means 
any bond issued as part of an issue if— 
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‘‘(A) 100 percent of the available project 
proceeds of such issue are to be used for the 
purposes described in section 301 of the Re-
build America’s Schools Act of 2017, 
‘‘(B) the interest on such obligation would 
(but for this section) be excludable from gross 
income under section 103, 
‘‘(C) the issue meets the requirements of 
paragraph (3), and 
‘‘(D) the issuer designates such bond for 
purposes of this section. 
‘‘(2) APPLICABLE RULES.—For purposes of ap-
plying paragraph (1)— 
‘‘(A) for purposes of section 149(b), a 
school infrastructure bond shall not be treated 
as federally guaranteed by reason of the credit 
allowed under subsection (a) or section 6431, 
‘‘(B) for purposes of section 148, the yield 
on a school infrastructure bond shall be deter-
mined without regard to the credit allowed 
under subsection (a), and 
‘‘(C) a bond shall not be treated as a 
school infrastructure bond if the issue price has 
more than a de minimis amount (determined 
under rules similar to the rules of section 
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1273(a)(3)) of premium over the stated prin-
cipal amount of the bond. 
‘‘(3) 6-YEAR EXPENDITURE PERIOD.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if, as of the date of issuance, the 
issuer reasonably expects 100 percent of the 
available project proceeds to be spent for pur-
poses described in section 301 of the Rebuild 
America’s Schools Act of 2017 within the 6- 
year period beginning on such date of issuance. 
‘‘(B) 
FAILURE
TO
SPEND
REQUIRED 
AMOUNT
OF
BOND
PROCEEDS
WITHIN
YEARS.—To the extent that less than 100 per-
cent of the available project proceeds of the 
issue are expended at the close of the period de-
scribed in subparagraph (A) with respect to 
such issue, the issuer shall redeem all of the 
nonqualified bonds within 90 days after the end 
of such period. For purposes of this paragraph, 
the amount of the nonqualified bonds required 
to be redeemed shall be determined in the same 
manner as under section 142. 
‘‘(e) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
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bonds issued during any calendar year which may be des-
ignated under subsection (d) by any issuer shall not exceed 
the limitation amount allocated under subsection (g) for 
such calendar year to such issuer. 
‘‘(f) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—The national qualified school infrastruc-
ture bond limitation for each calendar year is— 
‘‘(1) $10,000,000,000 for 2018, 
‘‘(2) $10,000,000,000 for 2019, and 
‘‘(3) $10,000,000,000 for 2020. 
‘‘(g) ALLOCATION OF LIMITATION.— 
‘‘(1) ALLOCATION AMONG STATES.— 
‘‘(A) Except as provided in paragraph (2), 
the limitation applicable under subsection (f) 
for any calendar year shall be allocated by the 
Secretary among the States in proportion to the 
respective amounts received by all local edu-
cational agencies in each State under part A of 
title I of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311 et seq.) for 
the previous fiscal year relative to the total such 
amount received by all local educational agen-
cies in for the most recent fiscal year ending 
before such calendar year. 
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