NEW YORK -- Congressman Charles Rangel introduced on June 25, 2011, H.R. 2394: Rebuilding America's Schools Act, which would increase aid for school construction and renovation across the country.

"Many of our nation's schools are in dire need of rehabilitation and repair," Rangel said. "In order to compete in a global economy, it is imperative that we recommit ourselves to making sure that the next generation of Americans is endowed with access to quality education."

H.R. 2394 would extend the Qualified School Construction Bond (QSCB) and the  Qualified Zone Academy Bond (QZAB) program through 2015. The bill also includes an option to waive the historically required 10% match from private entities, and allow for new construction, to ensure that QZAB funds go to the school districts that need to build new schools. 

Similar legislation, S.796, was introduced by Senator Jay Rockefeller (D-WV) in the Senate.

Studies have found connections between the quality of school facilities and student performance. The National Bureau of Economic Research reported in December 2008 an increase in test scores where school bonds had passed and school facilities had been improved.

"The importance of having a safe and comfortable environment for our children to learn and succeed cannot be understated," Rangel stated. "In order for America to continue to be the land of opportunity and the home of innovation we must focus on our schools, and the quality of education as well as the quality of facilities for today's students."

Established in 1997 under the Taxpayers Relief Act, QZAB funds are allocated for rehabilitation or repair of school buildings, equipment, course development, and teacher training. Participating schools must be located in an empowerment zone or enterprise community or have the reasonable expectation that at least 35% of the students will be eligible for free or reduced-cost lunches. QSCB was launched in 2009 to give school districts funds for construction, rehabilitation, repairs for public school facilities or land acquisitions for new buildings. The American Federation of Teachers December 2008 report estimated that the total school infrastructure need across the 50 states had risen to $254.6 billion.

Facts on H.R. 2394 and the QSCB and QZAB Programs:

Qualified School Construction Bonds (QSCB)

• Used for construction, rehabilitation, or repair of a public school facility or for acquisition of land for such a facility
• Program began in 2009
• National allocation limited to $11 billion per year in 2009 and 2010
• Hiring Incentives to Restore Employment (HIRE) Act allows issuers to elect to receive the tax credit as a direct payment (refundable credit)
• The bill would extend QSCB through 2015 with national allocation of $11 billion per year

Qualified Zone Academy Bonds (QZAB)

• Used for rehabilitation or repair of school buildings, equipment, course development, and teacher training
• Participating schools must be located in an empowerment zone or enterprise community or have the reasonable expectation that at least 35% of the students will be eligible for free or reduced-cost lunches
• Program created by Taxpayer’s Relief Act of 1997 and began in 1998
• National allocation limited to $1.4 billion per year in 2009 and 2010
• The bill would extend QZAB through 2015 with national allocation of $1.4 billion per year
• The bill  allows issuers to elect to receive the tax credit as a direct payment (refundable credit), as done in the Hire Act (PL 111-147)
• The bill allows the recipient to waive the current 10% match requirement if the bond is pooled with other issues through the acquisition by, or the sponsorship or assistance of, a private, nonprofit corporation established in the District of Columbia and specifically recognized by Congress for the purpose of leveraging resources and stimulating private investment in education technology infrastructure
• The bill allows for QZAB funds to be used for new construction efforts.