Providing capital financial assistance to small school districts with demonstrated funding challenges.

HB 1538 creates a new grant program to help small, financially struggling school districts (with 1,000 students or fewer) modernize or rebuild aging school buildings. It requires projects to address critical safety issues like seismic risks, outdated infrastructure, and accessibility barriers in buildings over 30 years old and rated "poor" by the state. Districts must first secure a planning grant to assess needs before applying for construction grants, with funding prioritized based on financial need and building conditions. Grants cover project planning, design, and construction costs (excluding district administration), but cannot exceed 110% of the statewide average cost per square foot.