Palestine Community Unit School District 3

Palestine Community Unit School District 3, a U.S. local government school district headquartered in Palestine, Illinois, receives federal formula grants as a prime recipient from the Department of Education's Office of Elementary and Secondary Education (OESE) and acts as a sub-recipient of pass-through grants from the Illinois State Board of Education. The district does not hold federal contracts and does not compete in the federal procurement market; its federal funding relationship is entirely grant-based, centered on K–12 education programming for rural Illinois students.

The district's prime federal grant footprint consists of recurring Small, Rural School Achievement Program awards from OESE, with formula grants issued annually since at least 2022. Palestine CUSD 3 received SRSA awards on July 1 of each year from 2022 through 2026, with the most recent award dated July 1, 2026, and an ultimate completion date of September 30, 2027. These awards support instructional programming and operational activities characteristic of small rural school systems serving economically disadvantaged or at-risk student populations.

Customer concentration is absolute: the Department of Education accounts for all 25 awards in the source data, split between OESE (23 awards, prime and sub combined) and the Office of Special Education and Rehabilitative Services (2 awards). The district's sub-recipient role involves pass-through grants from the Illinois State Board of Education, which administers federal programs at the state level. Sub-awards since 2021 include IDEA Part B Flow-Through funding for special education services (salaries, professional development, purchased services, tuition reimbursement for residential placements), at-risk student instructional support and equipment, Title I materials and professional development, and Elementary and Secondary School Emergency Relief funds under the CARES Act. The most recent sub-awards, dated September 2026, fund residential cost reimbursement for students with disabilities and educational activities for at-risk student populations.

Award activity has been episodic rather than growth-oriented: one award in 2022, two in 2023, three in 2024, three in 2025, and one in 2026. Combined dollars obligated across all awards total $2 million, reflecting the grant structure of rural school funding rather than contract procurement. One award reaches ultimate completion within the next twenty-four months, presenting minimal recompete exposure. The district's federal footprint is non-competitive, formulaic, and rooted in its status as a qualifying rural school system under Title I and special education entitlements rather than in business development or federal contracting capability.