Rebuild America’s Schools Act of 2026

Bill Number

H.R. 7340

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Education

Status

Introduced

Latest Action

2026-02-04: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, 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 committee concerned.

Last Updated

2026-03-24T19:33:54Z

AI-Generated Summary

Purpose of the Legislation

The Rebuild America's Schools Act of 2026 aims to support the long-term improvement of public school facilities across the United States. It focuses on enhancing the safety, health, energy efficiency, and educational quality of schools, particularly those serving low-income and disadvantaged students, through federal grants, tax credit bonds, and targeted assistance programs. The act emphasizes equitable distribution of resources, environmental sustainability, and compliance with health and safety standards.

Key Provisions

The legislation is structured into six titles, outlining funding mechanisms, eligibility criteria, allowable uses, and oversight requirements.

Title I: Grants for the Long-Term Improvement of Public School Facilities

• Authorizes $20 billion annually from fiscal years 2027 through 2031 for need-based grants to qualified local educational agencies (LEAs)—defined as school districts receiving funds under Title I, Part A of the Elementary and Secondary Education Act (ESEA), which supports schools with high numbers of low-income students.
• States receive allocations based on their share of ESEA Title I funds; they must submit plans detailing use, maintenance of state investment, and equitable distribution.
• States can reserve up to 5% for administrative tasks, including creating a public database of school facility conditions (e.g., age of systems, safety inspections, proximity to hazards like toxic sites or disaster-prone areas).
• Grants prioritize LEAs with high percentages of low-income students (eligible for free/reduced-price lunch), limited fundraising capacity (e.g., poor bond ratings), and urgent needs (e.g., outdated facilities, overcrowding, health risks).
• LEAs must develop a 10-year facilities master plan, consulting stakeholders like teachers, families, and tribes.
• Up to 10% of funds may support digital learning improvements, such as high-speed broadband access.
• Includes reservations (0.5% each) for outlying areas (e.g., territories) and Bureau-funded schools (serving Native American students).

Title II: School Infrastructure Bonds

• Restores and expands qualified zone academy bonds (tax credit bonds from before their 2017 repeal) with a $1.4 billion annual limit starting in 2027; removes private contribution requirements and allows use for school construction, retrofitting, and repairs.
• Introduces new "school infrastructure bonds" with a $10 billion annual national limit for 2027–2029; bondholders receive a 100% tax credit on interest payments, effectively making them interest-free for issuers.
• Allocations follow ESEA Title I proportions, prioritizing high-need LEAs; up to 10% for digital learning.
• Bonds must be spent within 6 years on allowable projects, with redemption required for unspent proceeds.
• Applies labor standards (e.g., prevailing wages) to bond-financed projects.

Title III: Uses of Funds

• Allowable uses include construction, renovation, retrofitting (e.g., seismic upgrades, all-electric systems for decarbonization), major repairs, accessibility improvements (per Americans with Disabilities Act and Section 504), energy/water efficiency, removal of toxins (e.g., lead, asbestos, PFAS chemicals), indoor air quality enhancements, and community partnerships.
• Prohibits routine maintenance, athletic facilities with paid admission, vehicles, or non-educational buildings; restricts funding for for-profit charter schools or those leasing from for-profits with conflicts of interest.
• Requires projects to meet national building codes, energy conservation standards, WaterSense criteria (for water efficiency), and green building certifications (e.g., LEED or equivalent).
• Mandates use of U.S.-produced iron, steel, and manufactured products (waivable if unavailable, too costly, or against public interest), consistent with international trade agreements.

Title IV: Reports and Other Matters

• Requires annual reports from the Secretary of Education on grant usage, including demographics, project benefits (e.g., health improvements, jobs created), and equity in distribution.
• Directs a Comptroller General report (with updates at 5–6 and 10–11 years) assessing state criteria, project types, geographic spread, and accessibility for high-need schools.
• Mandates periodic studies (every 5 years) on school conditions' impact on health, academics, accessibility, and costs to achieve "good repair."
• Establishes the Office of School Infrastructure and Sustainability in the Department of Education to advise on plans, coordinate with other agencies (e.g., EPA, Energy), and manage programs.
• Requires data standards for facility inventories and an information clearinghouse for federal energy/retrofit financing.
• Expresses congressional support for combining opportunity zones (low-income areas eligible for tax incentives) with school investments to boost local economies.

Title V: Impact Aid Construction

• Temporarily increases authorization to $100 million annually (2027–2031) for Impact Aid construction grants, which help LEAs in areas with federal property (e.g., near military bases) that limits local tax revenue.

Title VI: Assistance for Repair of School Foundations Affected by Pyrrhotite

• Provides grants for repairing or reimbursing (for past 5 years) concrete foundations damaged by pyrrhotite (a mineral causing deterioration).
• States allocate funds; LEAs must prove damage via licensed engineer inspections and use qualified contractors.
• Federal share up to 50%, state share at least 40% from non-federal sources; applications require cost estimates and insurance details.
• Authorizes necessary appropriations starting in 2027; prohibits dual funding with Title I grants.

General Requirements

• States must match 10% of allocations (waived if over $7 billion appropriated annually) and maintain 90% of prior state investment in school capital (waivable for disasters/pandemics).
• Funds supplement, not replace, state/local spending.
• Reporting emphasizes equity, disaggregated by race, income, and geography.

Significant Changes to Existing Law

• Restoration and Expansion of Tax Credits: Revives pre-2017 qualified zone academy bonds under the Internal Revenue Code, extends limits, and adds school infrastructure bonds—new tools for low-interest financing not previously available at this scale.
• New Funding Authorizations: Introduces $20 billion annual grants (previously no dedicated federal program of this magnitude for school facilities) and boosts Impact Aid from prior levels.
• Targeted Pyrrhotite Program: Creates a novel federal-state grant program for a specific construction defect, absent in prior law.
• Administrative Enhancements: Establishes a new Department of Education office, data standards, and public databases—expanding beyond ESEA's focus on academics to infrastructure.
• Green and Buy American Mandates: Imposes stricter energy, water, and domestic content requirements on school projects, building on but exceeding existing ESEA and energy laws.
• Equity Focus: Shifts allocations toward high-poverty LEAs with fundraising challenges, altering prior ad-hoc funding approaches.

Potential Impacts

• Government Agencies: The Department of Education gains responsibilities for grant administration, reporting, and a new office, increasing workload and coordination with agencies like Treasury (for bonds), Interior (for tribal schools), and EPA (for toxins). States face new planning/database mandates, potentially straining budgets but enabling better resource tracking.
• Citizens: Students and staff in under-resourced public schools (especially low-income, rural, or disaster-vulnerable) benefit from safer, more efficient facilities, improved learning environments, and reduced health risks (e.g., from contaminants or poor ventilation). Communities may see job creation (e.g., construction) and economic boosts via opportunity zones. Taxpayers could face indirect costs through bonds but gain from long-term energy savings.
• International Relations: Minimal direct impact; domestic content rules for materials align with U.S. trade obligations, avoiding conflicts with agreements like USMCA or WTO.

Main Stakeholders Affected

• Local Educational Agencies (LEAs): Primary recipients, especially qualified ones serving high-poverty students (e.g., Title I schools); must prioritize needs and report usage.
• States and Outlying Areas: Allocate funds, develop plans/databases, and match contributions; responsible for oversight and equity.
• Students and School Staff: Direct beneficiaries through healthier, modern facilities; includes economically disadvantaged, racial/ethnic minorities, disabled individuals, and those in high-risk areas.
• Bureau-Funded Schools and Tribes: Receive dedicated reservations for Native American schools, with tribal consultation.
• Charter Schools: Eligible if non-profit and facility-controlled, but restricted if for-profit involved.
• Taxpayers and Investors: Affected via tax credits on bonds, potentially lowering borrowing costs for schools.
• Contractors and Businesses: Opportunities for U.S.-based firms in construction/repairs; preferences for small/minority/veteran/women-owned businesses.
• Communities: Broader gains from facility upgrades supporting diversity, social services, and economic revitalization.

Notable Legal, Constitutional, or Political Implications

• Legal: Enforces "supplement not supplant" and matching requirements to prevent fund diversion, with waivers for extraordinary circumstances (e.g., disasters). Labor standards (e.g., Davis-Bacon prevailing wages) apply to bond projects, potentially increasing costs but ensuring worker protections. Prohibitions on for-profit charters address conflicts of interest. Pyrrhotite grants require state-approved testing, standardizing relief for a niche issue.
• Constitutional: Supports equal protection by prioritizing equity for disadvantaged groups, aligning with ESEA's focus on low-income students; no apparent challenges to federalism, as states retain allocation flexibility.
• Political: Bipartisan sponsorship (119 House members) signals broad support for infrastructure investment; emphasizes non-partisan goals like safety and sustainability, but could spark debates on federal spending levels ($100+ billion total) and domestic content rules amid fiscal constraints. Sense of Congress on opportunity zones promotes private investment without mandates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Scott, Robert C. "Bobby" [D-VA-3]

Cosponsors (96)

Rep. Norcross, Donald [D-NJ-1], Rep. Smith, Adam [D-WA-9], Rep. Panetta, Jimmy [D-CA-19], Rep. Sánchez, Linda T. [D-CA-38], Rep. Tokuda, Jill N. [D-HI-2], Rep. Wilson, Frederica S. [D-FL-24], Rep. Strickland, Marilyn [D-WA-10], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Beyer, Donald S. [D-VA-8], Del. Plaskett, Stacey E. [D-VI-At Large], Rep. Horsford, Steven [D-NV-4], Rep. Morelle, Joseph D. [D-NY-25], Rep. Ross, Deborah K. [D-NC-2], Rep. Magaziner, Seth [D-RI-2], Rep. Casten, Sean [D-IL-6], Rep. Lee, Summer L. [D-PA-12], Rep. Takano, Mark [D-CA-39], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. McGarvey, Morgan [D-KY-3], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Pingree, Chellie [D-ME-1], Rep. Mannion, John W. [D-NY-22], Rep. Landsman, Greg [D-OH-1], Rep. Bishop, Sanford D. [D-GA-2], Rep. McBath, Lucy [D-GA-6], Rep. Swalwell, Eric [D-CA-14], Rep. Elfreth, Sarah [D-MD-3], Rep. Goldman, Daniel S. [D-NY-10], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Bonamici, Suzanne [D-OR-1], Rep. Carson, André [D-IN-7], Rep. Mrvan, Frank J. [D-IN-1], Rep. Beatty, Joyce [D-OH-3], Rep. Simon, Lateefah [D-CA-12], Rep. Foster, Bill [D-IL-11], Rep. Scott, David [D-GA-13], Rep. Lieu, Ted [D-CA-36], Rep. Davis, Danny K. [D-IL-7], Rep. Dean, Madeleine [D-PA-4], Rep. Trahan, Lori [D-MA-3], Rep. Craig, Angie [D-MN-2], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Castor, Kathy [D-FL-14], Rep. Jacobs, Sara [D-CA-51], Rep. Mfume, Kweisi [D-MD-7], Rep. Hayes, Jahana [D-CT-5], Rep. Budzinski, Nikki [D-IL-13], Rep. Salinas, Andrea [D-OR-6] and 46 more

Recent Actions

• 2026-02-04: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, 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 committee concerned.
• 2026-02-04: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, 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 committee concerned.
• 2026-02-04: Introduced in House
• 2026-02-04: Introduced in House

Bill Versions

• Rebuild America’s Schools Act of 2026 — issued 2026-02-04 — PDF (75 pages)

Related Bills

• S. 3777 (119th Congress)