The Charter Schools Program last completed a State Charter School Facilities Incentive competition in 2009, awarding two grants, which with continuations are expected to run through 2013. Information will be posted when dates for the next competition are known.

CFDA Number: 84.282D
Program Type: Discretionary/Competitive Grants
Also Known As: Per-Pupil Facilities Aid Program

This program provides competitive grants to help states establish and enhance or administer "per-pupil facilities aid" for charter schools. The federal funds are used to match programs funded with nonfederal dollars that make payments, on a per-pupil basis, to provide charter schools with facilities financing. The program is intended to encourage states to share in the costs associated with charter schools facilities funding, and as a result states pay an increasing share of the cost of the program. The maximum federal share of facilities funds decreases each year (from 90 percent in the first year to 20 percent in year five) and phases out entirely after five years.

Charter schools, unlike traditional public schools, do not typically receive facilities funding and generally cannot raise funds through taxes. Furthermore, charter schools have difficulty securing funds because conventional lenders consider them financially risky. To overcome this barrier, some states have established per-pupil facilities aid programs that provide charter schools with facilities funding for five years based on the number of pupils they enroll. Under this grant, the maximum federal share of facilities funds decreases each year (from 90 percent in the first year to 20 percent in year five) and phases out entirely after 5 years.