May a State use Government Services funds to construct, modernize, renovate, or repair a private school facility?

Yes. A State may use these funds to construct, modernize, renovate, or repair a private school facility. However, the limitations referenced in Question IV-3 apply to such uses of funds.

For example, a State is prohibited from using Government Services funds for construction, modernization, renovation, or repair of facilities (a) that are used for sectarian instruction or religious worship; or (b) in which a substantial portion of the functions of the facilities are subsumed in a religious mission. (See generally Section 14004(c) of the ARRA.) III-D-2. What are the statutory prohibitions on an LEA’s use of Education Stabilization funds?

Section 14003 of the ARRA prohibits an LEA from using Education Stabilization funds for – • Payment of maintenance costs; • Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; • Purchase or upgrade of vehicles; • Improvement of stand-alone facilities ... more.

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