Small School District Modernization Grant

Small School District Modernization Grants are for K-12 schools with an enrollment of 1,000 students or less, and State-Tribal Education Compact Schools (STEC). The two programs are separate processes. The Legislature provided $530,000 for planning grants, $174,450,000 for construction grants, and $27,371,000 for State-Tribal Education Compact Schools.

The K-12 Small District Modernization Grant is intended to assist small districts, of one thousand students or less, with:

1. School facilities that have significant building system deficiencies; and
2. Such low property value that replacing or modernizing the school facility through the school construction assistance program would present an extraordinary tax burden on property owners or would exceed allowable debt for the district.

This funding is intended for small districts where the school facility does not need to be replaced or require extensive modernization but does have significant building system deficiencies.

The application process is not open at this time. Form Package 503 is only for districts that received planning and construction funding in 2025-27.

New applications will be announced through EGMS as the Legislature funds in each biennium.

Grant Process

• ONLY Districts with an enrollment of 1,000 students or less (excluding ALE) may apply. The October 1049 of the application year will be used to determine the district enrollment. If a district applies for a planning grant and enrollment is 1,000 or less but student count is higher than 1,000 at time of construction funding, districts will be allowed to continue.
• ONLY permanent recognized educational facilities will be considered.
• There is no district matching funds requirement.
• District indirect charges are not allowed.
• Districts apply for planning grants as OSPI opens applications in EGMS. Districts can receive up to $50,000 (determined by review committee).
• Applications are scored, prioritized and presented to the Legislature as part of the following biennium's OSPI's Capital Budget Request.
• As the Legislature provides planning grant funding, districts may hire a consultant to update ICOS Building Condition Assessment (BCA) scores and fill out required documents to describe the project to better obtain construction budget totals.
• After a district fulfills the requirements of a planning grant, the construction cost is included in the next biennium's OSPI Capital Budget Request for proposed funding.
• Planning Grants and or Construction Grants that are not funded would then be included in the following biennium's capital budget request.

State-Tribal Education Compact (STEC) Schools

Prior to the start of a new biennium, on a timeline established by OSPI, State-Tribal Education Compact Schools must work with the OSPI Grant Manager to establish a proposed list of projects not to exceed the cap established by the Legislature for Small District Modernization Grants each biennium. The list of projects is submitted to the Legislature each biennium as part of the OSPI Capital Budget Request.

Upon legislative funding, the Grant Manager will work with the State-Tribal Education Compact School to provide information required to receive a grant letter allowing the State-Tribal Education Compact School to start their project/s.

Tribes receiving Federal Bureau of Indian Education (BIE) Tribally Controlled Grants or Contracts should coordinate proposed projects with the BIE to fulfill all federal requirements.

All grants must be completed and claimed in the biennium received.