According to the U.S. Department of Education (ED) data for FY2012, the most recent data available, public elementary and secondary education and other related programs spent $36.8 billion on construction and $3.3 billion on land and existing structures. According to College Planning & Management, U.S. colleges and universities completed $12.0 billion worth of new construction, additions, and retrofits in 2014. School construction and renovation have traditionally been considered to be state and local responsibilities. Nonetheless, the federal government has established a role in financing school construction and renovation. The federal government provides both indirect support for school construction (mainly by exempting from federal income taxation the interest on state and local government bonds used to finance school construction and renovation) and direct support via grants and loans for unique schools and populations. This report examines estimates of school infrastructure needs and discusses the federal role in financing both K-12 public school infrastructure and public and private higher education facilities. National data on the condition of school infrastructure and the need for infrastructure investment are extremely limited, outdated, and difficult to assess in part because of the wide variation of potential assumptions and definitions regarding both conditions and needs. In addition, there is substantial complexity associated with gathering and compiling data for which there is currently no central repository. At present, there is no ongoing federal collection of data on the conditions of schools. However, in response to concerns about the physical condition of schools and a congressional mandate, ED issued a one-time study in 2000 that contained estimates of the costs of needed modernizations, renovations, and repairs to K-12 public school buildings and/or building features. In 2000, ED estimated the cost of bringing K-12 school facilities into good condition in 1999 at $127 billion. ED more recently followed the 2000 report with a 2014 report. The estimated cost of repairs, renovations, and modernization required to bring 2012-2013 public school facilities into good condition was approximately $197 billion or $4.5 million per school. School infrastructure needs are affected not only by the age and physical condition of a school, but also by shifts in the student population or changes in school policies and by changes in expectations, technology, and school instructional practices. For example, implementing smaller class sizes may require additional floor space and walls. The introduction of computers and the need for Internet access may require rewiring classrooms. Increased science curriculum requirements may require new or additional laboratory facilities. Land and facilities are major tangible assets of postsecondary education institutions. Appropriate facilities are required to support increases in enrollment and changes in technological expectations. Aside from the need for new facilities, regular maintenance and renovation of the facilities are required for institutions to fulfill their research, educational, and other missions. One estimate suggests that facilities at research universities require an endowment equal to the cost of construction to maintain the facilities over their lifetime. According to the National Science Foundation's (NSF's) biennial study of science and engineering research facilities at colleges and universities, 20% of research space required renovation or replacement in FY2011 while 19% required renovation or replacement in FY2013. The costs for new construction, repair, and renovation of science and engineering research space in academic institutions started in FY2010 or FY2011 were $9.9 billion and in FY2014 or FY2015 were $10.5 billion, and the costs of deferred projects increased from $21.3 billion in FY2011 to $22.0 billion in FY2015. ED has, since 1997, provided support to an Educational Facilities Clearinghouse. The clearinghouse is an informational resource on planning, designing, funding, building, improving, and maintaining safe, healthy, high-performance schools from nursery to higher education. The clearinghouse does not, however, collect or evaluate data. In the FY2015 appropriations conference agreement, Congress included funding of $1 million for the Educational Facilities Clearinghouse within the Department of Education, Fund for the Improvement of Education account. This section describes the historical role of the federal government in the renovation and construction of school facilities. The Revenue Act of 1913 (38 Stat. 114) excluded from federal income tax the interest income earned by holders of state and local government debt obligations. This exclusion has been retained through subsequent revisions of the Internal Revenue Code. Almost all state and local governments sell bonds to finance public projects and certain qualified private activities. Bonds issued for certain purposes are tax-exempt because the interest payments are not included in the bondholder's (purchaser's) federal taxable income. This exemption allows these bonds to be issued at lower interest rates but still provide competitive returns. State and local governments may also issue tax credit bonds, which allow the holder to claim a federal tax credit equal to a percentage of the bond's par value (face value) for a limited number of years. Meanwhile, issuers of tax credit bonds typically pay no interest to bondholders. Thus, tax credit bonds can deliver a larger federal subsidy to the issuing state or local government than tax-exempt bonds. As far back as the Great Depression, the federal government provided funding to support K-12 school infrastructure. The Works Progress Administration financed 4,383 new schools and renovated thousands of additional schools between 1935 and 1940. In 1950, a program was enacted to inventory state school construction needs and Impact Aid programs. Impact Aid programs were enacted under P.L. 81-815, P.L. 81-874, and P.L. 81-875 to fund school construction in federally affected areas, areas affected by federal activities, and facilities damaged by major disasters. From FY1989 through FY2001, in response to Supreme Court rulings regarding the provision of equitable services to private school students, local educational agencies (LEAs) received federal assistance for capital expenses, including mobile educational units (20 U.S.C. §7279 et seq.). Attempts to increase federal assistance for needed improvements to school infrastructure continued in the 1990s. The Education Infrastructure Act of 1994 was enacted as Title XII of the Elementary and Secondary Education Act by the Improving America's Schools Act of 1994 ( P.L. 103-382 ) to provide direct federal assistance for the renovation and construction of public elementary and secondary schools, among other things. The program was never funded. The Federal Emergency Management Administration (FEMA) has administered the disaster assistance program since 1992. In response to specific natural disasters, Congress has enacted additional legislation to create temporary programs to meet the needs of students, schools, LEAs, and states, including modernizing, renovating, or repairing school buildings. The Consolidated Appropriations Act for FY2001 ( P.L. 106-554 ) appropriated $1.2 billion in FY2001 for school renovation and repair, activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. §1411 et seq. ), and technology activities. Over 75% of the $1.2 billion was designated for school facilities and ensured distribution to LEAs in the outlying areas, LEAs enrolling significant numbers of children connected to federal lands or low-rent public housing, high poverty LEAs, and rural LEAs. The program was not permanently authorized and did not receive funding in subsequent years. Most recently, in 2009, Congress provided a one-time appropriation that could be used for renovation and construction. The American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5 ) authorized a $54 billion State Fiscal Stabilization Fund (SFSF). States were required to use at least 81.8% of their share of the SFSF to restore support of public elementary, secondary, and postsecondary schools, and, as applicable, early childhood education programs and services. Among the allowable uses of restoration funds were modernization, renovation, or repair of public school facilities. States were required to use the remaining 18.2% of their share of the SFSF for education, public safety, and other government services, which may include modernization, renovation, or repair of public school and public or private college facilities, depending on the criteria that the governor used to allocate the funds. ED issued guidance specifically allowing the SFSF to be used for K-12 construction but not construction of IHEs. Federal support for higher education facilities also has a long history. Since the 1857 Act to incorporate the Columbian Institution for the Instruction of the Deaf and Dumb, and the Blind (later renamed Gallaudet University), Congress has appropriated funds for construction and operation of the university. In 1928, Congress authorized the appropriation of funds for Howard University to aid in its construction, development, improvement, and maintenance. In 1965, the National Technical Institute for the Deaf Act (P.L. 89-36) established the National Technical Institute for the Deaf and authorized the appropriation of funds for its operation and construction. Congress authorized several loan or interest subsidy grant programs to help finance the construction, reconstruction, and renovation of housing, academic, and other educational facilities. The College Housing Loan program (Title IV of the Housing Act of 1950; 64 Stat. 77) was intended to alleviate housing shortages on college campuses that resulted from increased enrollments. The Higher Education Facilities Act of 1963 (P.L. 88-204) authorized Loans for Construction of Academic Facilities. A revolving loan fund was established to make higher education academic facilities loans by P.L. 89-429. The Education Amendments of 1972 (P.L. 92-318) established annual interest grants to reduce borrowing costs and academic facilities loan insurance to assist private nonprofit entities in procuring loans for the construction, reconstruction, and renovation of academic facilities. The Public Health Service Act, as amended by the Health Professions Educational Assistance Act of 1963 (P.L. 88-129), authorized grants for the construction, rehabilitation, and replacement of teaching facilities for health personnel and schools of nursing.