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Two years ago, headlines warned of a possible dismantling of the U.S. Department of Education, a scenario that sent shockwaves through school finance and facilities offices. Leaders scrambled to imagine a future without federal oversight, wondering how they would protect budgets and keep classrooms safe and functional. 

Fast forward to today and the Department of Education is still here, but the funding landscape has evolved. Federal dollars remain steady (about 10% of school budgets), but they’re not growing. Instead, the real action is in targeted programs and incentives like infrastructure grants, energy-efficiency initiatives, and clean energy tax credits that can dramatically reduce costs. 

This shift means one thing: leaders who adapt will thrive. The question isn’t just how to protect your facilities budget, but how to stretch it, stack funding sources, and align every investment with student success. Here’s how you can do just that. 

1. Conduct a comprehensive facilities audit 

Before chasing new dollars, know what you need. Conduct a full facilities audit, not just for repairs, but for opportunities. Consider which projects could qualify for energy-efficiency grants? Where can clean energy upgrades cut utility costs? Map out your next 3-5 years and tag projects that align with federal programs like DOE’s Renew America’s Schools or ED’s SASI/NCSI initiatives. 

Before any major changes occur, facilities leaders should: 

• Document all current infrastructure needs and ongoing projects
• Prioritize repairs and improvements based on safety and educational impact
• Create detailed cost projections for the next 3-5 years
• Identify which projects currently rely on federal funding streams
• Employ an Academic ROI framework to assess the programmatic needs for facilities 

2. Diversify funding sources 

To reduce dependency on federal funding, instead: 

• Tap into DOE’s $90M Renew America’s Schools Prize for HVAC, lighting, and renewable energy upgrades.
• Explore Inflation Reduction Act tax credits, now available as direct payments to schools.
  • Pair these with state grants, utility rebates, and even local partnerships. The goal? Build a “capital stack” that blends federal, state, and private dollars.
• Creating revenue-generating programs through facility rentals or community use. 

3. Build strong state-level relationships 

If federal dollars are steady, states are where flexibility lives. Join facilities planning committees, advocate for equitable resource distribution, and show how your projects support academic priorities. 

With the potential shift of education authority to states, it's crucial to: 

• Establish strong connections with state education agencies
• Participate in state-level facilities planning committees
• Advocate for equitable distribution of resources at the state level
• Join state associations focused on school facilities management 

When engaging with state education agencies, school leaders should advocate for facilities policies and funding mechanisms that support their instructional priorities and student achievement goals.  

To make a compelling case for state support, districts should be prepared to demonstrate how their facilities plans are aligned with their academic strategies. For example, if a district has identified early literacy as a key priority, they might seek state funding for library renovations or classroom reading nooks that create inviting spaces for young readers. 

By framing facilities needs in terms of their educational impact, school leaders can build stronger partnerships with state agencies and secure resources that directly support student success.  

4. Implement cost-saving measures 

Protect your existing resources by: 

• Investing in preventive maintenance programs
• Adopting energy-efficient systems and practices
• Developing shared service agreements with neighboring districts
• Implementing lifecycle cost analysis for all major purchases
• Aligning facilities spending with academic priorities (A-ROI) 

In addition to operational cost-saving measures, schools should also look for opportunities to strategically allocate facilities resources to support academic goals. The Academic ROI framework suggests expanding highly cost-effective programs that increase student learning, while eliminating ineffective or cost-prohibitive programs. By carefully evaluating the academic impact and financial sustainability of programs, schools can make targeted investments in facilities that enhance educational outcomes. 

For example, if a school identifies a STEM program that significantly improves student achievement at a reasonable cost, they may choose to invest in upgrading the labs and classrooms that support that program. Conversely, if an expensive extracurricular activity is found to have little impact on student learning or engagement, the school might redirect those resources to more effective programs or pressing facility needs. 

5. Create emergency and contingency plans 

Prepare for funding disruptions by: 

• Establishing reserve funds for critical infrastructure needs
• Developing tiered priority lists for maintenance and repairs
• Creating flexible budgets that can adapt to different funding scenarios
• Building relationships with local financial institutions 

As part of their contingency planning, school leaders should also consider adopting an Academic ROI approach to budget decision-making. This framework offers a range of options for districts with the capability to analyze the cost-effectiveness and educational impact of their programs: 

• Expand programs that are highly cost-effective and significantly improve student learning outcomes
• Segment and target programs to specific student populations to maximize their impact and efficiency
• Fix programs that show some success but have limited cost-effectiveness, making targeted improvements
• Eliminate programs that are either ineffective or unsustainably expensive, redirecting those resources to higher-priority needs 

By incorporating these strategies into their emergency and contingency plans, schools can be better prepared to make difficult budget decisions in a way that prioritizes student learning and long-term sustainability. Having a clear framework for evaluating and optimizing programs can help leaders navigate funding challenges more effectively and minimize the impact on educational outcomes.

6. Strengthen local support 

With potentially reduced federal oversight, local support becomes increasingly crucial: 

• Engage community stakeholders in facilities planning
• Communicate transparently about infrastructure needs and costs
• Build support for local funding initiatives
• Develop long-term community partnerships 

7. Modernize financial management 

Improve financial efficiency through: 

• Advanced facilities management software
• Data-driven decision-making processes
• Regular financial audits and reviews
• Professional development for facilities and finance staff 

As school districts modernize their financial management systems, they should also consider integrating Academic ROI analysis. 

By incorporating Academic ROI data into their financial reporting and analysis, school leaders can gain a more comprehensive view of how their resources are being used and how they are contributing to student outcomes. This information can help districts make more strategic budget decisions, identifying opportunities to invest in high-impact programs or to reallocate resources from less effective initiatives. 

Some specific Academic ROI capabilities to consider include: 

• Dashboards that display the academic impact and cost-effectiveness of different programs or interventions
• Predictive analytics tools that estimate the potential ROI of proposed investments or budget changes
• Scenario planning features that allow leaders to model the educational and financial implications of different resource allocation strategies 

Integrating these tools into modern financial management systems can help districts optimize their limited resources and ensure that their spending is aligned with their educational priorities. By combining operational and instructional data, school leaders can make more informed, student-centered decisions about their facilities investments and overall budgets. 

8. Focus on equity 

Maintain commitment to educational equity by: 

• Documenting disparities in facilities conditions
• Developing plans to address inequitable conditions
• Creating mechanisms to ensure fair resource distribution
• Building coalitions with other districts facing similar challenges 

When assessing facilities needs and making investment decisions, school leaders should pay particular attention to how resource allocation can help close opportunity gaps and support equitable student outcomes. 

By directing facilities investments toward underserved student populations and high-need schools, districts can work to level the playing field and ensure that all students have access to safe, modern, and educationally supportive learning environments.  

Act now to secure your facilities' future

The fear of losing the Department of Education has faded, but the challenge of doing more with less remains. Federal formula funding is steady, but it’s not growing, and the real opportunities now lie in targeted grants, energy-efficiency programs, and clean energy tax credits that can transform your budget strategy. Don’t wait for the next budget cycle to catch you off guard. Start today by: 

• Auditing your facilities to identify projects eligible for DOE and ED programs
• Building your capital stack with federal, state, and local funding sources
• Engaging stakeholders to align facilities investments with academic priorities
• Modernizing your financial tools to track ROI and forecast funding scenarios 

The future isn’t about surviving uncertainty; it’s about thriving in complexity. By acting now, you can secure resources, reduce costs, and create safe, modern learning environments that drive student success.