New Schools For Alabama received a $15.375 million Project Grant from the U.S. Department of Education's Office of Elementary and Secondary Education under the Credit Enhancement for Charter School Facilities program (CFDA 84.354), effective October 1, 2025, through September 30, 2050. The award funds the establishment of a reserve account in Birmingham, Alabama that will be deployed to guarantee and insure debt and lease financing for charter school facility acquisition, construction, and renovation activities. By enhancing credit availability and reducing lender risk, these credit enhancements are designed to lower interest rates and borrowing costs for charter schools seeking to develop or improve their physical infrastructure.
As a competitive grant under this program, which has distributed over $772 million across 85 awards since 2002, New Schools For Alabama's funding represents a typical award magnitude within the program's $8 million to $20 million range. The grantee is required to maintain the reserve account according to generally accepted accounting principles, subject to annual independent audits, and to retain relevant financial records for three years following the grant's completion. This 25-year award aligns with the program's standard funding period and reflects the Department's historical practice of making one-time awards to eligible entities.