H.R. 7340

Rebuild America’s Schools Act of 2026

Sponsor: Robert C. "Bobby" Scott

98 cosponsors
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Official summary

Written by the Congressional Research Service.

Rebuild America's Schools Act of 2026

This bill provides support for long-term improvements to public elementary and secondary school facilities.

First, the bill sets forth allocations to states and establishes a need-based grant program for local educational agencies (LEAs) to improve school facilities. Further, the bill specifies allowable uses of grant funds, including carrying out major repairs, improving indoor air quality, and making facilities accessible to individuals with disabilities.

Additionally, the bill requires LEAs that receive funds for new construction, modernization, or renovation projects to comply with hazard-resistance building codes and performance criteria under the WaterSense program of the Environmental Protection Agency. Further, the bill requires such LEAs to adopt certain green practices (environmental standards) and requires the use of iron, steel, and manufactured products that are made in the United States (Buy America).

The bill restores school infrastructure tax credit bonds.

The bill also sets forth reporting requirements, including annual reports on grant program projects and a report by the Government Accountability Office that requires a study of the geographic distribution of projects, the impact of selected projects on student and staff health and safety, and the accessibility of projects to high-needs schools.

The bill also establishes the Office of School Infrastructure and Sustainability within the Department of Education.

Next, the bill extends through FY2031 the Impact Aid Construction program.

Finally, the bill establishes a grant program to assist LEAs with repairing or replacing concrete foundations affected by pyrrhotite (an iron sulfide material linked to crumbling foundations).

Text of the bill

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I GRANTS FOR THE LONG-TERM IMPROVEMENT OF PUBLIC SCHOOL FACILITIES

II School infrastructure bonds

Sec. 201. Restoration of certain qualified tax credit bonds

(a) Allowance of credit

(1) In general. Section 54A of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived.

(2) Credit limited to certain bonds

(A) In general. Section 54A(d)(1) of such Code, as revived by paragraph (1), is amended by striking means— and all that follows through which is part and inserting means a qualified zone academy bond which is part.

(B) Conforming amendment. Section 54A(c)(2)(C) of such Code, as revived by paragraph (1), is amended by striking means— and all that follows and inserting a purpose specified in section 54E(a)(1).

(3) Conforming amendments

(A) The Internal Revenue Code of 1986 is amended by inserting before section 54A (as revived by paragraph (1)) the following:

Text this section adds to the law

I Qualified tax credit bonds

(B) Section 6401(b)(1) of such Code is amended by striking and G and inserting G, and I.

(C) The table of subparts for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following:

Text this section adds to the law

SUBPART I—Qualified tax credit bonds

(b) Credit allowed to issuer

(1) In general. Section 6431 of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived.

(2) Conforming amendment. Section 6211(b)(4) of such Code is amended by striking and 6428A and inserting 6428A, and 6431.

(c) Qualified zone academy bonds

(1) In general. Section 54E of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived.

(2) Extension of limitation. Section 54(E)(c)(1) of such Code is amended—

(A) by striking and $400,000,000 and inserting $400,000,000, and

(B) by striking and, except as provided and all that follows through the period at the end and inserting , and $1,400,000,000 for 2027 and each calendar year thereafter..

(3) Removal of private business contribution requirement. Section 54E of the Internal Revenue Code of 1986, as revived by paragraph (1) and amended by paragraph (2), is amended—

(A) in subsection (a)(3), by inserting and at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B),

(B) by striking subsection (b), and

(C) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.

(4) Construction of a public school facility. Section 54E(c)(3)(A) of the Internal Revenue Code of 1986, as revived by paragraph (1) and redesignated in paragraph (3)(C), is amended by striking rehabilitating or repairing and inserting constructing, rehabilitating, retrofitting, or repairing.

(d) Conforming amendment related to application of certain labor standards

(1) In general. 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 the American Recovery and Reinvestment Tax Act of 2009.

(2) Conforming amendment. Section 1601 of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

(e) Effective date. The amendments made by this section shall apply to obligations issued after December 31, 2026.

III USES OF FUNDS

IV REPORTS AND OTHER MATTERS

V IMPACT AID CONSTRUCTION

VI ASSISTANCE FOR REPAIR OF SCHOOL FOUNDATIONS AFFECTED BY PYRRHOTITE