Lisc credit enhancement for charter school facilities: dream big fund

The U.S. Department of Education's Office of Elementary and Secondary Education awarded Local Initiatives Support Corporation (LISC) a $20 million Project Grant under the Credit Enhancement for Charter School Facilities program (CFDA 84.354) on October 1, 2025, with a completion date of September 30, 2050. Through its "DREAM BIG Fund" initiative, LISC will establish and manage a reserve account to provide credit enhancement services that strengthen charter schools' access to financing for facility acquisition, construction, and renovation. The credit enhancements—including loan guarantees, debt insurance, and lease guarantees—are designed to reduce lender risk, thereby improving charter schools' borrowing capacity and lowering interest rates and financing costs.

As an intermediary community development organization, LISC will leverage the $20 million federal obligation to support charter school facility financing across multiple states. The 25-year grant period reflects the program's standard structure, enabling sustained credit enhancement activity that facilitates long-term capital investment in charter school infrastructure. This award represents one of the program's largest recent competitive grants and demonstrates the Department of Education's commitment to expanding charter school facility development capacity through enhanced credit availability.