Regular Operating District Grants

In 2000, the Educational Facilities Construction and Financing Act provided an initial authorization of $2.6 billion for grants to Regular Operating Districts (RODs), including $100 million for vocational schools. Then, on July 9, 2008 legislation was signed providing an additional $1 billion in funding for RODs including $50 million for vocational schools. The Department of Education (DOE) developed an application process to allocate these funds, which are disbursed by the SDA.

In 2022, legislation (S2944) was signed which allocated $350 million in ROD Grant Funding for high-priority capital projects in school districts throughout the State. In September 2023, the DOE and SDA announced the approval of nearly $450 million in school construction funds to address critical facilities needs.
2024 Regular Operating District Grant Project with Grant Offers
2024 Regular Operating District Grant Projects with Executed Grant Agreements

More information on the Grant Program for School Facilities Projects in RODs is available on the DOE Web site at: www.state.nj.us/education/facilities. Questions related to the SDA ROD Grant Program can be directed to: RODGrants@njsda.gov

GRANT ELIGIBILITY

School districts were eligible to receive at least 40 percent of eligible project costs. Projects could include improving air quality, upgrading building systems, ADA upgrades, technology infrastructure upgrades, and repairs to the exterior building skin. Only projects that were 100 percent eligible for state support and included in one of the prioritization "levels" were considered by DOE, although districts may request debt-service aid for other projects. Projects that require a local referendum to raise the local funding portion were not be eligible for this allocation of ROD funding.

AWARDS

Following approval by the DOE, the project is transmitted to SDA who will then offer a grant to the district. Upon proof of local share and completion of other required grant-related documents, the SDA is then able to execute a grant agreement.

PAYMENT

Grants are paid out as districts attain specific project milestones.

For projects with a final eligible cost of more than $250,000:

Design phase payment (representing reimbursement of payments to design and other consultants) 10%
35% Construction Completion 30%
65% Construction Completion 40%
Substantial Completion 15%
Final Completion 5%

For projects with a final eligible cost that is less than or equal to $250,000:

50% Construction Completion 50.5%
Substantial Completion 45%
Final Completion 4.5%

At each request for payment by the district, SDA sends a Grant Inspection Team to review documents justifying disbursement. Teams also physically inspect the school.