New Bill Authorizes $100M Annually for Charter School Facilities, Shifts Funding Mandates

The aptly named Equitable Access to School Facilities Act is all about easing the facility crunch for charter schools. If you’ve ever wondered why new schools pop up in strip malls or old office buildings, it’s usually because securing a proper building is one of the biggest hurdles for charter operators. This bill tries to fix that by creating a new federal grant program and tweaking how existing education funds are managed.

The New $100 Million Toolkit for States

Section 4 establishes a brand new State Facilities Aid Program, authorizing $100 million annually from 2026 through 2030. This is a competitive grant, meaning states have to apply to the Secretary of Education and prove they have a solid plan to help charter schools with facility costs—things like leasing, buying, or renovating buildings. The money can also be used to fund ongoing facility costs.

Here’s the catch: the Secretary must give preference to states that already have charter-friendly facility laws on the books. This includes states that let charter schools use tax-exempt financing or give them the first crack at buying surplus public property. Essentially, the federal government is offering a big carrot to states that proactively remove bureaucratic hurdles for charter schools. For a parent looking for a new school option, this could mean seeing better, more permanent facilities open up faster.

Quiet Changes to Existing Funding Rules

While the new grant program is the headline grabber, Sections 3 and 6 make quiet, but significant, changes to how existing federal education funds are managed under the Elementary and Secondary Education Act (ESEA).

First, Section 3 removes a mandatory minimum spending requirement for facility financing assistance. Previously, there was a rule that required at least 50% of those funds to be used for facility financing assistance. The bill strikes that language. This means state agencies now have more flexibility in how they spend that money, but it also removes a financial guardrail that ensured a minimum amount went directly toward school buildings. For federal oversight bodies, this change means less certainty about where those specific funds will end up.

Second, Section 6 changes the rules for state grants supporting high-quality charter schools. States currently have to pass through 90% of those funds directly to the schools. This bill lowers that mandatory pass-through rate to 80%. States can then use the remaining 10% to set up a revolving loan fund for charter schools, helping them with startup costs or facility needs. This gives states more control over a portion of the funds, allowing them to finance loans instead of just handing out grants. While the loans are intended to help schools, it means less direct grant money is guaranteed to reach the schools upfront.

The Real-World Impact: Flexibility vs. Accountability

This legislation is a clear win for charter school growth, especially in states that are already supportive. The new $100 million program provides dedicated funding that can help a charter school move out of a temporary location and into a permanent building, which is crucial for long-term stability and planning.

However, the bill introduces a trade-off between state flexibility and federal accountability. Removing the 50% minimum spending mandate (Section 3) and lowering the 90% pass-through rule (Section 6) gives state agencies more room to maneuver. While this flexibility can be used to create innovative loan programs, it also makes tracking the money more complex and removes certain guarantees that funds will be spent directly on facilities. For taxpayers, this means a significant new federal spending commitment—$100 million annually—is being authorized, with some of the existing financial oversight rules being loosened at the same time.