(1) to support the creation and implementation 
of State policies, as well as the expansion of existing 
State policies, to improve the quality and afford-
ability of charter school facilities, including by pro-
viding funding and financing for those facilities and 
expanding charter schools’ access to public buildings; 
and 
(2) to make other improvements to the Federal 
Charter Schools Program. 
SEC. 3. AMENDMENTS TO STATE FACILITIES AID PROGRAM. 
Section 4304(k) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7221c(k)) is amended 
to read as follows: 
‘‘(k) STATE FACILITIES AID PROGRAM.— 
‘‘(1) STATE
ENTITY
DEFINED.—In this sub-
section, the term ‘State entity’ has the meaning 
given the term in section 4303(a). 
‘‘(2) GRANTS TO STATE ENTITIES.— 
‘‘(A) GRANTS
AUTHORIZED.—From the 
amount reserved under section 4302(b)(1) and 
remaining after the Secretary makes grants 
under subsection (a) and reserves funds under 
paragraph (3) of this subsection, the Secretary 
shall make grants, on a competitive basis, to 
State entities to pay for the cost of establishing 
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or enhancing, and administering, charter school 
facilities aid programs. 
‘‘(B) APPLICATION.—A State entity desir-
ing to receive a grant under this subsection 
shall submit an application to the Secretary at 
such time, and in such manner, as the Sec-
retary may require, and containing the informa-
tion needed for the considerations and priorities 
described in subparagraphs (C) and (D). 
‘‘(C) SELECTION
CONSIDERATIONS.—In 
making grants under this subsection, the Sec-
retary shall consider the extent to which the ac-
tivities proposed to be carried out under a grant 
will— 
‘‘(i) increase charter schools’ access to 
State funds or financing for acquiring or 
operating facilities, including by reducing 
the gaps to such access between charter 
schools and other public schools in the 
same State; 
‘‘(ii) increase charter schools’ access 
to public buildings; and 
‘‘(iii) increase the access of charter 
schools in low-income and rural commu-
nities to adequate facilities. 
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‘‘(D) 
PRIORITIES.—In 
making 
grants 
under this subsection, the Secretary shall give 
a competitive preference priority to a State en-
tity located in a State that— 
‘‘(i) qualifies for a priority under sub-
paragraph 
(A) 
or 
(C) 
of 
section 
4303(g)(2); 
‘‘(ii) provides charter schools with ac-
cess to tax-exempt financing; 
‘‘(iii) ensures that land-use policies 
within the State, such as policies regarding 
permits and fees, provide for the same or 
substantially similar treatment of charter 
schools as of other public schools; or 
‘‘(iv) prohibits localities and other in-
strumentalities of the State from imposing 
negative deed restrictions on properties 
that limit charter school access, including 
prohibitions or restrictions on charter 
schools purchasing surplus public property. 
‘‘(E) USES OF FUNDS.—A State entity re-
ceiving a grant under this subsection shall use 
such grant to carry out one or more of the fol-
lowing activities in the State in which the State 
entity is located: 
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‘‘(i) Increasing funding for, or cre-
ating financing mechanisms to support, 
charter schools’ acquisition, access to leas-
ing, and renovation of facilities, which may 
include partnerships with local educational 
agencies that provide access to public 
buildings. 
‘‘(ii) Increasing funding for, or cre-
ating funding mechanisms to support, 
charter schools’ ongoing facilities costs. 
‘‘(iii) Supporting the creation of alter-
nate ownership models to plan, develop, 
and manage facilities for charter schools 
and other public service providers. 
‘‘(iv)(I) In the case of a State entity 
that is not receiving a grant under sub-
section (a), establishing and maintaining a 
reserve account described in subsection (f) 
and depositing all, or a portion of, the 
grant funds received under this subsection 
in such reserve account for one or more of 
the purposes described subsection (f)(1). 
‘‘(II) In the case of a State entity 
that is receiving a grant under subsection 
(a), depositing all, or a portion of, the 
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grant funds received under this subsection 
in the reserve account established and 
maintained by the State entity under sub-
section (f). 
‘‘(F) SUPPLEMENT, NOT
SUPPLANT.—A 
State entity receiving a grant under this sub-
section shall use such grant only to supplement, 
and not supplant, non-Federal funds that would 
otherwise be used for activities authorized 
under this subsection. 
‘‘(3) NATIONAL ACTIVITIES.—From the amount 
reserved under section 4302(b)(1) and remaining 
after the Secretary makes grants under subsection 
(a), the Secretary may reserve not more than 2 per-
cent to carry out, directly or through grants or con-
tracts, technical assistance to State entities receiving 
grants under this subsection, evaluation of grant ac-
tivities, and research and dissemination related to 
the purposes of this subsection.’’. 
SEC. 4. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
(a) LIMITATIONS ON PROVISION OF GRANTS TO A 
STATE.—Section 4303(e)(1) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7221b(e)(1)) 
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is amended by striking ‘‘is currently using’’ and inserting 
‘‘has not fully obligated all funds received through’’. 
(b) 
AWARDING
OF
SUBGRANTS.—Section 
4303(f)(1)(A)(i) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7221b(f)(1)(A)(i)) is 
amended— 
(1) by striking ‘‘the proposed number’’ and in-
serting ‘‘an initial projection of the number’’; and 
(2) by inserting ‘‘, provided that such initial 
projection shall not govern a State entity’s allocation 
of subgrant funds if the State entity determines, 
after selecting subgrantees, that an alternative allo-
cation would better meet the purposes of the pro-
gram’’ after ‘‘the State entity’s program’’. 
(c) USES OF FUNDS.—Section 4303(h)(1)(B) of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7221b(h)(1)(B)) is amended by inserting ‘‘or ini-
tial implementation’’ after ‘‘planning’’. 
(d) NO-COST EXTENSIONS OF GRANT PROJECT PE-
RIODS.—Section 4303 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7221b) is amended by 
adding at the end the following: 
‘‘(j) EXTENSION OF PROJECT PERIODS.—In making 
grants under this section and under section 4305(b), the 
Secretary shall approve requests by a grantee to extend 
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