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(B) ensure the health and safety of stu-
dents and staff; 
(C) make them more energy efficient; or 
(D) reduce class size; and 
(15) required environmental remediation related 
to public school modernization, renovation, or repair 
described in paragraphs (1) through (14). 
SEC. 104. PRIORITY PROJECTS. 
In selecting a project under section 103, a local edu-
cational agency may give priority to projects involving the 
abatement, removal, or interim controls of asbestos, poly-
chlorinated biphenyls, mold, mildew, lead-based hazards, 
including lead-based paint hazards, or a proven car-
cinogen. 
TITLE 
II—SUPPLEMENTAL 
GRANTS FOR LOUISIANA, MIS-
SISSIPPI, AND ALABAMA 
SEC. 201. PURPOSE. 
Grants under this title shall be for the purpose of 
modernizing, renovating, repairing, or constructing public 
school facilities, including, where applicable, early learning 
facilities, based on their need for such improvements, to 
be safe, healthy, high-performing, and up-to-date techno-
logically. 
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SEC. 202. ALLOCATION TO LOCAL EDUCATIONAL AGEN-
CIES. 
(a) IN GENERAL.—Of the amount appropriated to 
carry out this title for each fiscal year pursuant to section 
311(b), the Secretary shall allocate to local educational 
agencies in Louisiana, Mississippi, and Alabama an 
amount equal to the infrastructure damage inflicted on 
public school facilities in each such district by Hurricane 
Katrina or Hurricane Rita in 2005 relative to the total 
of such infrastructure damage so inflicted in all such dis-
tricts, combined. 
(b) DISTRIBUTION BY SECRETARY.—The Secretary 
shall determine and distribute the allocations described in 
subsection (a) not later than 60 days after an appropria-
tion of funds for this title is made. 
SEC. 203. ALLOWABLE USES OF FUNDS. 
A local educational agency receiving a grant under 
this title shall use the grant for one or more of the activi-
ties described in section 103, except that an agency receiv-
ing a grant under this title also may use the grant for 
the construction of new public school facilities. 
TITLE III—GENERAL 
PROVISIONS 
SEC. 301. IMPERMISSIBLE USES OF FUNDS. 
No funds received under this Act may be used for— 
(1) payment of maintenance costs; 
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(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) improvement or construction of facilities the 
purpose of which is not the education of children, in-
cluding central office administration or operations or 
logistical support facilities; or 
(4) purchasing carbon offsets. 
SEC. 302. SUPPLEMENT, NOT SUPPLANT. 
A local educational agency receiving a grant under 
this Act shall use such Federal funds only to supplement 
and not supplant the amount of funds that would, in the 
absence of such Federal funds, be available for moderniza-
tion, renovation, repair, and construction of public school 
facilities. 
SEC. 303. PROHIBITION REGARDING STATE AID. 
A State shall not take into consideration payments 
under this Act in determining the eligibility of any local 
educational agency in that State for State aid, or the 
amount of State aid, with respect to free public education 
of children. 
SEC. 304. MAINTENANCE OF EFFORT. 
(a) IN GENERAL.—A local educational agency may 
receive a grant under this Act for any fiscal year only if 
either the combined fiscal effort per student or the aggre-
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gate expenditures of the agency and the State involved 
with respect to the provision of free public education by 
the agency for the preceding fiscal year was not less than 
90 percent of the combined fiscal effort or aggregate ex-
penditures for the second preceding fiscal year. 
(b) REDUCTION IN CASE OF FAILURE TO MEET 
MAINTENANCE OF EFFORT REQUIREMENT.— 
(1) IN GENERAL.—The State educational agen-
cy shall reduce the amount of a local educational 
agency’s grant in any fiscal year in the exact propor-
tion by which a local educational agency fails to 
meet the requirement of subsection (a) by falling 
below 90 percent of both the combined fiscal effort 
per student and aggregate expenditures (using the 
measure most favorable to the local agency). 
(2) SPECIAL
RULE.—No such lesser amount 
shall be used for computing the effort required 
under subsection (a) for subsequent years. 
(c) WAIVER.—The Secretary shall waive the require-
ments of this section if the Secretary determines that a 
waiver would be equitable due to— 
(1) exceptional or uncontrollable circumstances, 
such as a natural disaster; or 
(2) a precipitous decline in the financial re-
sources of the local educational agency. 
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SEC. 305. SPECIAL RULE ON CONTRACTING. 
Each local educational agency receiving a grant under 
this Act shall ensure that, if the agency carries out mod-
ernization, renovation, repair, or construction through a 
contract, the process for any such contract ensures the 
maximum number of qualified bidders, including local, 
small, minority, and women- and veteran-owned busi-
nesses, through full and open competition. 
SEC. 306. USE OF AMERICAN IRON, STEEL, AND MANUFAC-
TURED GOODS. 
(a) IN GENERAL.—None of the funds appropriated 
or otherwise made available by this Act may be used for 
a project for the modernization, renovation, repair or con-
struction of a public school facility unless all of the iron, 
steel, and manufactured goods used in the project are pro-
duced in the United States. 
(b) EXCEPTIONS.—Subsection (a) shall not apply in 
any case or category of cases in which the Secretary finds 
that— 
(1) applying subsection (a) would be incon-
sistent with the public interest; 
(2) iron, steel, and the relevant manufactured 
goods are not produced in the United States in suffi-
cient and reasonably available quantities and of a 
satisfactory quality; or 
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