The US Department of Education is changing its position on whether Stimulus Funds can, and should be used to fund new school construction.  In April, the DOE had indicated that new construction was an allowable use for the funds.  Last week, however, the DOE changed their position in an update to their previous guidance.  Now, the department is strongly discouraging the use of Stimulus Funds for new construction.  They have even gone as far as to indicate that anyone who does use the funds for new construction will be penalized in consideration for the “Race to the Top” money.  

Apparently, the funding of new school construction continues to be a hotly debated topic.  Keep in mind that $14-$16 billion of funds for new construction were stricken from the final Stimulus Bill.  There’s clearly a need, but no one is quite sure how to fund that need.