October 14, 2026
NAESCO urges Congress to extend Renew America's Schools and help districts leverage proven public-private partnerships
Washington, D.C. — Nearly one in five U.S. school districts canceled school last year because their buildings failed, according to a new report by the U.S. Government Accountability Office (GAO), K-12 Education: Facility Issues Led About One in Five Districts to Cancel School in 2024-25 (GAO-26-107970). Plumbing emergencies and extreme classroom temperatures drove the closures, including in one district that sent students home when classrooms reached 110 degrees. These cancellations affected an estimated 2 million students, who lost nearly 3.5 million days of learning. Nearly half of all districts (47%) reported chronic facility issues. Even when schools remained open, many students faced disruptions from uncomfortable classroom conditions, displacement from learning spaces, and other issues that negatively affected the educational environment.
The primary reason public school districts find themselves in this vulnerable position is a lack of funding. While some financial support comes from state and federal governments, capital funding for school facilities largely falls on the shoulders of local school districts and taxpayers. GAO estimates that 55% of districts consider their recent facilities budgets insufficient to meet their needs, and 73% of district leaders said limited state formula funding hindered their ability to meet facility needs. Putting off repairs only raises the bill: GAO found that deferred maintenance leads to higher long-term costs, and that districts with limited capacity for preventive maintenance had more chronic facility problems and more disruptions to instruction.
"GAO has confirmed what energy service companies have been seeing for years: the need for school facility improvements far exceeds the funding available to many districts," said Dr. Timothy Unruh, Executive Director of NAESCO. "Schools need funding options that allow them to address deferred maintenance, replace aging systems, and improve the long-term health and performance of their buildings without new local tax levies. When federal funds are paired with an energy savings performance contract, districts can do exactly that, paying for much of the work with the energy savings the upgrades generate."
Federal dollars go further through energy savings performance contracts
Given the scale of deferred maintenance facing school districts nationwide, federal funding remains essential. Even limited federal dollars can be leveraged through an Energy Savings Performance Contract (ESPC) to deliver significantly larger infrastructure investments. An ESPC is a legislatively authorized public-private partnership in which an energy service company designs, finances, and installs facility upgrades, and guaranteed energy and operational savings repay the investment over time. ESPCs enable schools to complete comprehensive modernization projects rather than addressing facility needs one issue at a time, and they deliver the preventive maintenance, cost savings, and technical expertise that GAO found districts rely on to manage costs and meet facility needs. Federal support is particularly important for low-income and rural school districts, which often face the greatest infrastructure challenges and the fewest resources to address them.
A proven federal program is set to expire
A great example of federal support is the Renew America's Schools Program, launched by the U.S. Department of Energy (DOE) in 2022 under Section 40541 of the Infrastructure Investment and Jobs Act to promote the implementation of energy improvements at K-12 public schools across the country. This first-of-its-kind investment has helped schools make energy upgrades that reduced energy use and costs, improved indoor air quality, and fostered healthier learning environments. To date, the program has invested $372.5 million in public school districts, funding improvement projects at approximately 410 facilities across 36 states and benefitting approximately 197,000 students and 14,000 teachers. Many awardees leveraged federal funds within an ESPC, allowing districts to maximize the impact of federal investments and undertake larger, more comprehensive facility modernization projects that would otherwise not have been possible, transforming their schools in the process.
The program's $500 million in funding was spread across fiscal years 2022 through 2026. NAESCO urges Congress to extend the Renew America's Schools Program or establish a similar federal funding initiative for FY2027 and beyond, with priority for rural and low-income districts. Now is the time to act before aging facilities fall further into disrepair, students and teachers continue to learn and work in substandard conditions, and communities miss out on the economic and social benefits that modern, high-performing schools provide.
States can help districts move faster
NAESCO also advocates for greater involvement from state and local governments to help districts understand and access proven solutions such as energy savings performance contracting. GAO found that some states have already helped districts by dedicating revenue sources to school facilities, offering incentives for preventive maintenance, and helping keep capital projects on track and on budget. State and local governments can build on these practices by creating programs, resources, and technical support that enable districts to more quickly develop and execute public-private partnerships. While funding may not always be available, guidance, expertise, and support can help schools take advantage of opportunities to modernize facilities and better serve their students and communities.
Every year of delay adds to the maintenance backlog, and to the bill. Congress has a proven, bipartisan tool to help districts get ahead of it.
About The National Association of Energy Service Companies (NAESCO)
The National Association of Energy Service Companies (NAESCO) is the leading advocacy and accreditation organization for Energy Service Companies (ESCOs) and is dedicated to modernizing America's building infrastructure. NAESCO unites the energy service industry by promoting favorable government policies, sponsoring a rigorous accreditation program, and providing professional training and education. NAESCO champions the interests of ESCOs across the nation.
Learn more about NAESCO, its members, membership benefits, and the accreditation process at www.naesco.org, and follow NAESCO on LinkedIn (@naesco). View the full list of NAESCO-accredited companies here: https://www.naesco.org/accreditation/accredited-companies/.