DOE announces up to $100 million to help schools cut energy costs, modernize facilities

The latest Renew America's Schools initiative will establish regional hubs to help K–12 districts plan energy upgrades, improve aging building systems, and access funding for initial facility improvements.
Nov. 9, 2026
4 min read
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Key Highlights

  • The $100 million initiative is part of the DOE’s $500 million Renew America’s Schools program.
  • Regional hubs are expected to receive $2 million to $5 million per funding round and provide technical assistance to K–12 districts.
  • Eligible districts may receive up to $250,000 for initial improvements such as HVAC upgrades, building controls, and electrical infrastructure.
  • Applications for regional hubs are expected to open in November 2026, with a Jan. 15, 2027 deadline.
  • The program aims to help districts address aging systems and rising operating costs, though funding is small relative to nationwide facilities needs.
Courtesy of JHVEPhoto | Getty Images
Sign of United States Department of Energy (DOE) outside their headquarters building in Washington, D.C. USA

The U.S. Department of Energy has announced up to $100 million in funding to help public school districts reduce energy costs, modernize aging facilities, and develop long-term plans for improving building performance. The funding, announced on Oct. 27, is part of the department’s $500 million Renew America’s Schools program, established under the 2021 Bipartisan Infrastructure Law.

The latest initiative, called Affordability + Strategic Energy Pathways for Schools (A+STEPS), will create a network of regional support hubs to provide technical assistance, energy planning, and targeted infrastructure investments for K–12 schools.

Assistant Secretary of Energy Audrey Robertson said in the announcement:

“Every student deserves a comfortable place to learn, and every school should have the resources to make that possible. Under President Trump’s leadership, we’re helping school districts make smart, practical improvements that create better learning environments for students, reduce energy costs, and allow districts to direct their resources where they matter most.”

The announcement comes as school districts nationwide grapple with rising operating costs and growing maintenance backlogs. A September 2026 report from the U.S. Government Accountability Office found that 70% of public school districts identified a need to replace major building systems, including HVAC, plumbing, and telecommunications infrastructure. Aging equipment, inefficient building controls, and outdated electrical systems can place additional pressure on school budgets, making energy improvements an increasingly important component of long-range facilities planning.

Regional hubs will support school energy improvements

Rather than distributing the full $100 million directly to individual school districts, the Department of Energy anticipates selecting four to eight regional hubs, each receiving between $2 million and $5 million per funding round. According to the department’s A+STEPS program guidelines, the hubs will help districts assess their facilities, identify energy-saving opportunities, and develop plans for financing and implementing improvements.

Services will include energy audits, strategic energy planning, training for facilities personnel, and assistance connecting districts with project developers and financing resources. Participating school districts and local education agencies may also be eligible for up to $250,000 in initial facility improvements. Eligible activities may include HVAC and ventilation upgrades, building controls, building-envelope retrofits, electrical infrastructure improvements, load studies, and building monitoring systems.

The program is intended to help districts move beyond identifying deficiencies to developing projects that can attract funding and be implemented over time.

Regional hubs may include partnerships among universities, state energy offices, engineering firms, utilities, technical assistance organizations, and school facilities associations.

Applications expected to begin in November

Applications for regional hubs are expected to open in November 2026, with a submission deadline of Jan. 15, 2027, at 11:59 p.m. Eastern. The department anticipates notifying selected regional hubs in April 2027.

Individual school districts are not eligible to apply for regional hub funding at this stage, however. Instead, districts and other local education agencies will be able to seek assistance through a separate application process expected to begin in spring or summer 2027. Selections of participating districts and local partners are anticipated in fall 2027.

Why it matters

For school districts facing mounting maintenance backlogs and rising operating costs, the Department of Energy’s $100 million initiative offers a potential pathway to address aging, inefficient building systems. The need extends well beyond individual states: A 2026 GAO investigation found that approximately one in five school districts canceled classes because of facilities problems during the 2024–25 school year, affecting an estimated 2 million students. Meanwhile, North Carolina’s latest statewide facilities assessment identified more than $2 billion in HVAC needs alone. The regional hub model could be particularly valuable for smaller, rural, and under-resourced districts that lack the technical staff or funding to develop comprehensive energy improvement plans. Although the available funding won’t eliminate the nation’s substantial infrastructure backlog, it could help districts identify cost-effective upgrades, reduce operating expenses, and position larger modernization projects for future investment.

The initiative is being administered by EnergyWerx in partnership with the Department of Energy. Additional information about eligibility, application procedures, and upcoming deadlines is available on the department’s official A+STEPS opportunity page.

Building on previous school investments

The Renew America’s Schools program has already supported energy improvements at hundreds of public school facilities. According to the Department of Energy’s program overview, previous funding rounds have invested approximately $372.5 million in school districts nationwide, supporting energy management initiatives and funding improvement projects at about 410 facilities across 36 states. The department estimates those investments directly benefit approximately 197,000 students and 14,000 teachers.

The latest funding opportunity follows a period of uncertainty over the program’s implementation. In July 2025, the U.S. Government Accountability Office concluded that the Department of Energy violated the Impoundment Control Act when it delayed the obligation of fiscal 2025 program funding for policy reasons.

The new announcement establishes another pathway for helping districts address energy-related infrastructure needs, although the amount available for individual projects remains limited compared with the broader scale of school facility deficiencies nationwide.

For facilities leaders, the regional hub approach could provide access to technical expertise and project development assistance that smaller or financially constrained districts may otherwise struggle to obtain.

By combining building assessments, staff training, energy planning, and targeted improvements, the initiative aims to help districts reduce operating costs while creating a foundation for more comprehensive facilities modernization.

Contributors:
This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.
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