purposes described in section 301 of the Reopen 
and Rebuild America’s Schools Act of 2021, 
‘‘(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 section 6431(a), 
‘‘(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 
1273(a)(3)) of premium over the stated prin-
cipal amount of the bond. 
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‘‘(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 Reopen 
and Rebuild America’s Schools Act of 2021 
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 
bonds issued during any calendar year which may be des-
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ignated under subsection (d)(1)(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 2022, 
‘‘(2) $10,000,000,000 for 2023, and 
‘‘(3) $10,000,000,000 for 2024. 
‘‘(g) ALLOCATION OF LIMITATION.— 
‘‘(1) ALLOCATIONS.— 
‘‘(A) STATES.—After application of sub-
paragraph (B) and paragraph (3)(A), the limi-
tation applicable under subsection (f) for a cal-
endar year shall be allocated by the Secretary 
among the States in proportion to the respec-
tive amounts received by all local educational 
agencies in each State under part A of title I 
of the Elementary and Secondary Education 
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 for the most recent fiscal year ending be-
fore such calendar year. 
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‘‘(B) CERTAIN POSSESSIONS.—One-half of 
1 percent of the amount of the limitation appli-
cable under subsection (f) for a calendar year 
shall be allocated by the Secretary to posses-
sions of the United States other than Puerto 
Rico for such calendar year. 
‘‘(2) ALLOCATIONS TO SCHOOLS.—The limita-
tion amount allocated to a State or possession under 
paragraph (1) shall be allocated by the State edu-
cational agency (or such other agency as is author-
ized under State law to make such allocation) to 
issuers within such State or possession in accord-
ance with the priorities described in subsections (c) 
and (d) of section 103 of the Reopen and Rebuild 
America’s Schools Act of 2021 and the eligibility re-
quirements described in section 103(b) of such Act, 
except that paragraph (1)(C) of such section shall 
not apply to the determination of eligibility for such 
allocation. 
‘‘(3) ALLOCATIONS FOR INDIAN SCHOOLS.— 
‘‘(A) IN GENERAL.—One-half of 1 percent 
of the amount of the limitation applicable under 
subsection (f) for any calendar year shall be al-
located by the Secretary to the Secretary of the 
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Interior for schools funded by the Bureau of In-
dian Affairs for such calendar year. 
‘‘(B) ALLOCATION TO SCHOOLS.—The lim-
itation amount allocated to the Secretary of the 
Interior under paragraph (1) shall be allocated 
by such Secretary to issuers or schools funded 
as described in paragraph (2). In the case of 
amounts allocated under the preceding sen-
tence, Indian tribal governments shall be treat-
ed as qualified issuers for purposes of this sub-
chapter. 
‘‘(4) DIGITAL LEARNING.—Up to 10 percent of 
the limitation amount allocated under paragraph (1) 
or (3)(A) may be allocated by the State to issuers 
within such State (in the case of an amount allo-
cated under paragraph (1)) or by the Secretary of 
the Interior to issuers or schools funded by the Bu-
reau of Indian Affairs (in the case of an amount al-
located under paragraph (3)(A)) to carry out activi-
ties to improve digital learning in accordance with 
section 301(b) of the Reopen and Rebuild America’s 
Schools Act of 2021. 
‘‘(h) INTEREST PAYMENT DATE.—For purposes of 
this section, the term ‘interest payment date’ means any 
date on which the holder of record of the school infrastruc-
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ture bond is entitled to a payment of interest under such 
bond. 
‘‘(i) SPECIAL RULES.— 
‘‘(1) INTEREST ON SCHOOL INFRASTRUCTURE 
BONDS
INCLUDIBLE
IN
GROSS
INCOME
FOR
FED-
ERAL INCOME TAX PURPOSES.—For purposes of this 
title, interest on any school infrastructure bond shall 
be includible in gross income. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subsections (f), (g), (h), and 
(i) of section 54A shall apply for purposes of the 
credit allowed under subsection (a).’’. 
(b) 
CREDIT
ALLOWED
TO
ISSUER.—Section 
6431(f)(3)(A) of such Code, as revived by section 
201(b)(1), is amended by striking ‘‘means any qualified 
tax credit bond’’ and all that follows through the end of 
subparagraph (A) and inserting ‘‘means any bond if— 
‘‘(A) such bond is— 
‘‘(i) a qualified tax credit bond which 
is a qualified zone academy bond (as de-
fined in section 54E) determined without 
regard to any allocation relating to the na-
tional zone academy bond limitation for 
years after 2010 or any carryforward of 
any such allocation, or 
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‘‘(ii) any school infrastructure bond 
(as defined in section 54BB), and’’. 
(c) APPLICATION OF CERTAIN LABOR STANDARDS.— 
Subchapter IV of chapter 31 of the title 40, United States 
Code, shall apply to projects financed with the proceeds 
of any qualified zone academy bond (as defined in section 
54E of the Internal Revenue Code of 1986) issued after 
the date of the enactment of this Act. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6401(b)(1) of the Internal Revenue 
Code of 1986, as amended by section 201(a), is 
amended by striking ‘‘and I’’ and inserting ‘‘I, and 
J’’. 
(2) The table of subparts for part IV of sub-
chapter A of chapter 1 of such Code, as amended by 
section 201(a), is amended by adding at the end the 
following: 
‘‘SUBPART J—SCHOOL INFRASTRUCTURE BONDS’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2022. 
SEC. 203. ANNUAL REPORT ON BOND 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 of the Treasury shall submit 
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to the appropriate congressional committees a report on 
the amendments made by sections 201 and 202. 
(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— 
(A) each local educational agency (if any) 
that received an allocation under section 
54E(b)(2) or 54BB(g) of the Internal Revenue 
Code of 1986, and 
(B) each local educational agency (if any) 
that was eligible to receive such funds but did 
not receive such funds. 
(2) With respect to each local educational agen-
cy described in paragraph (1)— 
(A) an assessment of the capacity of the 
agency to raise funds for the long-term im-
provement of public school facilities, as deter-
mined by an assessment of— 
(i) the current and historic ability of 
the agency to raise funds for construction, 
renovation, modernization, and major re-
pair projects for schools, including the abil-
ity of the agency to raise funds through 
imposition of property taxes, 
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(ii) whether the agency has been able 
to issue bonds to fund construction 
projects, including— 
(I) qualified zone academy bonds 
under section 54E of the Internal 
Revenue Code of 1986, and 
(II) school infrastructure bonds 
under section 54BB of the Internal 
Revenue Code of 1986, and 
(iii) the bond rating of the agency, 
(B) 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.), 
(C) the population density of the geo-
graphic area served by the agency, 
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(D) a description of the projects carried 
out with funds received from school infrastruc-
ture bonds, 
(E) a description of the demonstrable or 
expected benefits of the projects, and 
(F) the estimated number of jobs created 
by the projects. 
(3) The total dollar amount of all funds re-
ceived by local educational agencies from school in-
frastructure bonds. 
(4) Any other factors that the Secretary of the 
Treasury determines to be appropriate. 
(c) INFORMATION COLLECTION.—A State or local 
educational agency that receives an allocation under sec-
tion 54E(b)(2) or 54BB(g) of the Internal Revenue Code 
of 1986 shall— 
(1) annually compile the information necessary 
for the Secretary of the Treasury to determine the 
elements described in subsection (b), and 
(2) report the information to the Secretary of 
the Treasury at such time and in such manner as 
the Secretary of the Treasury may require. 
(d) SECRETARY OF THE TREASURY.—For purposes 
of this section, the term ‘‘Secretary of the Treasury’’ in-
cludes the Secretary’s delegate. 
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TITLE III—USES OF FUNDS 
SEC. 301. ALLOWABLE USES OF FUNDS. 
(a) IN GENERAL.—Except as provided in section 302, 
a local educational agency that receives covered funds may 
use such funds to— 
(1) develop the facilities master plan required 
under section 103(f); 
(2) construct, modernize, renovate, or retrofit 
public school facilities, which may include seismic 
retrofitting for schools vulnerable to seismic natural 
disasters; 
(3) carry out major repairs of public school fa-
cilities; 
(4) install furniture or fixtures with at least a 
10-year life in public school facilities; 
(5) construct new public school facilities; 
(6) acquire and prepare sites on which new 
public school facilities will be constructed; 
(7) extend the life of basic systems and compo-
nents of public school facilities; 
(8) ensure current or anticipated enrollment 
does not exceed the physical and instructional capac-
ity of public school facilities; 
(9) ensure the building envelopes and interiors 
of public school facilities protect occupants from nat-
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ural elements and human threats, and are struc-
turally sound and secure; 
(10) compose building design plans that 
strengthen the safety and security on school prem-
ises by utilizing design elements, principles, and 
technology that— 
(A) guarantee layers of security through-
out the school premises; and 
(B) uphold the aesthetics of the school 
premises as a learning and teaching environ-
ment; 
(11) improve energy and water efficiency to 
lower the costs of energy and water consumption in 
public school facilities; 
(12) improve indoor air quality in public school 
facilities; 
(13) reduce or eliminate the presence of— 
(A) toxic substances, including mercury, 
radon, PCBs, lead, and asbestos; 
(B) mold and mildew; or 
(C) rodents and pests; 
(14) ensure the safety of drinking water at the 
tap and water used for meal preparation in public 
school facilities, which may include testing of the po-
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tability of water at the tap for the presence of lead 
and other contaminants; 
(15) bring public school facilities into compli-
ance with applicable fire, health, and safety codes; 
(16) make public school facilities accessible to 
people with disabilities through compliance with the 
Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) and section 504 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794); 
(17) provide instructional program space im-
provements for programs relating to early learning 
(including early learning programs operated by part-
ners of the agency), special education, science, tech-
nology, career and technical education, physical edu-
cation, music, the arts, and literacy (including li-
brary programs); 
(18) increase the use of public school facilities 
for the purpose of community-based partnerships 
that provide students with academic, health, and so-
cial services; 
(19) ensure the health of students and staff 
during the construction or modernization of public 
school facilities; or 
(20) reduce or eliminate excessive classroom 
noise due to activities allowable under this section. 
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(b) ALLOWANCE FOR DIGITAL LEARNING.—A local 
educational agency may use covered funds to leverage ex-
isting public programs or public-private partnerships to 
expand access to high-speed broadband sufficient for dig-
ital learning. 
SEC. 302. PROHIBITED USES. 
(a) IN GENERAL.—A local educational agency that 
receives covered funds may not use such funds for— 
(1) payment of routine and predictable mainte-
nance costs and minor repairs; 
(2) any facility that is primarily used for ath-
letic contests or exhibitions or other events for which 
admission is charged to the general public; 
(3) vehicles; or 
(4) central offices, operation centers, or other 
facilities that are not primarily used to educate stu-
dents. 
(b) ADDITIONAL PROHIBITIONS RELATING TO CHAR-
TER SCHOOLS.—No covered funds may be used— 
(1) for the facilities of a public charter school 
that is operated by a for-profit entity; or 
(2) for the facilities of a public charter school 
if— 
(A) the school leases the facilities from an 
individual or private sector entity; and 
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(B) such individual, or an individual with 
a direct or indirect financial interest in such en-
tity, has a management or governance role in 
such school. 
SEC. 303. REQUIREMENTS FOR HAZARD-RESISTANCE AND 
ENERGY AND WATER CONSERVATION. 
A local educational agency that receives covered 
funds shall ensure that any new construction, moderniza-
tion, or renovation project carried out with such funds 
meets or exceeds the requirements of the following: 
(1) Requirements for such projects set forth in 
the most recent published edition of a nationally rec-
ognized, consensus-based model building code. 
(2) Requirements for such projects set forth in 
the most recent published edition of a nationally rec-
ognized, consensus-based model energy conservation 
code. 
(3) Performance criteria under the WaterSense 
program, established under section 324B of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6294b), applicable to such projects within a nation-
ally recognized, consensus-based model code. 
(4) Indoor environmental air quality require-
ments applicable to such projects as set forth in the 
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most recent published edition of a nationally recog-
nized, consensus-based standard. 
SEC. 304. GREEN PRACTICES. 
(a) IN GENERAL.—In a given fiscal year, a local edu-
cational agency that uses covered funds for a new con-
struction project or renovation project shall use not less 
than the applicable percentage (as described in subsection 
(b)) of the funds used for such project for construction 
or renovation that is certified, verified, or consistent with 
the applicable provisions of— 
(1) the United States Green Building Council 
Leadership in Energy and Environmental Design 
green building rating standard (commonly known as 
the ‘‘LEED Green Building Rating System’’); 
(2) the Living Building Challenge developed by 
the International Living Future Institute; 
(3) a green building rating program developed 
by the Collaborative for High-Performance Schools 
(commonly known as ‘‘CHPS’’) that is CHPS- 
verified; or 
(4) a program that— 
(A) has standards that are equivalent to or 
more stringent than the standards of a program 
described in paragraphs (1) through (3); 
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(B) is adopted by the State or another ju-
risdiction with authority over the agency; and 
(C) includes a verifiable method to dem-
onstrate compliance with such program. 
(b) APPLICABLE PERCENTAGE.—The applicable per-
centage described in this subsection is— 
(1) for fiscal year 2022, 60 percent; 
(2) for fiscal year 2023, 70 percent; 
(3) for fiscal year 2024; 80 percent; 
(4) for fiscal year 2025, 90 percent; and 
(5) for each of fiscal years 2026 through 2031, 
100 percent. 
SEC. 305. USE OF AMERICAN IRON, STEEL, AND MANUFAC-
TURED PRODUCTS. 
(a) IN GENERAL.—A local educational agency that 
receives covered funds shall ensure that any iron, steel, 
and manufactured products used in projects carried out 
with such funds are produced in the United States. 
(b) WAIVER AUTHORITY.— 
(1) IN
GENERAL.—The Secretary may waive 
the requirement of subsection (a) if the Secretary 
determines that— 
(A) applying subsection (a) would be in-
consistent with the public interest; 
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